The Benefits of a Pay on Death Account
Feb 03, 2012 / By: Suzanne H. Presley, Attorney at Law / Category: Estate PlanningWhen planning your estate, one of your concerns may be how to avoid probate. If you are unprepared, probate can hold up your assets for months, or even years, leaving your loved ones without much needed funds. One tool that may be used when planning your estate is a “pay on death” account.
At your death, probate assets are frequently put on “hold” until a probate court authorizes their release to beneficiaries or heirs. A way to avoid this delay is by converting accounts to “pay on death” accounts.
A “pay on death” account accomplishes precisely what the name implies. When you die, the account is paid out to the beneficiary designated by you when you converted the account. Because the account has been converted to a “pay on death” account, the assets are not required to be included in your estate for probate purposes. However, by avoiding the probate process you also lose the benefits drafted into your estate plan for your beneficiaries. As such, consult with your Atlanta estate planning attorney before using a “pay on death” account and don’t rely on such accounts in lieu of an estate plan.
Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.



