Answer:
Answer by John Burnett: Once the beneficiary has been paid or has taken over the account (state laws vary on which applies), the funds are his or hers to do with as he or she wishes. That includes setting up his/her own beneficiary designation.
It's important to note that the beneficiary can't do anything with the account prior to the death of the initial owner.
Answer:
Answer by Ken Golliher: Hopefully, you close the decedent's account and issue a check to the beneficiary. (That's what your auditor would want.) Then, the payee can do anything he or she wants with the check, including opening an account and naming a POD beneficiary.
If your bank simply file maintenances the account title to change the ownership, someone has too expansive a view of energy conservation; that's just lazy. The technique can create a lot of problems.
First published on BankersOnline.com 12/10/12
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