Question & Answer

Question: We've had a request to open several accounts for one of our customers with the title of "Payable on Death". Is there a problem doing this? We want to keep her happy.

Answer: As well you should! She's a profitable customer for you. And though I don't really like the title, I imagine you're going to do it for her! I'd try to sell her on a plain old Totten trust. An "In Trust For" account does the same thing, but has the ability to change trustees if the need should arise. A POD does not. In either case, the accounts will bear your customer's social security number, as her name will appear first on the account. It's not a way that the interest on the account can be shifted to a minor, which was one of her aims.

Copyright © 1999 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 9, No. 11, 11/99