Answer:
The laws establishing Pay on Death ownership apply to deposit accounts; they don't apply to leases, such as safe deposit leases. In some states, it may be possible to designate an individual who may access a safe deposit box after the lessee (or all lessees) have died. In other states, either state law or, in the absence of state law, best practices, may provide guidance on accessing a box after the death of the lessee(s). It would be totally inappropriate and a bad legal choice to allow a lessee to make what you have termed a "pay on death" designation. Because state laws governing safe deposit operations vary so widely, it would be wise to consult with legal counsel to determine what your bank's policy ought to be.
First published on BankersOnline.com 8/02/10
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