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POD in IRA account
Can my bank keep an IRA account with a POD in the account if there is a line of credit on the POD account?
A POD account is an account that on the death of the primary account holder (you), the account is automatically paid over to a named person (beneficiary). This is why the account is referred to as a "pay on death" or POD account, because that is what it does. A POD account certainly should be able to have a line of credit associated with it. However, none of this mixes with an IRA. An IRA doesn't pay on death, it has a beneficiary designation. Also, a line of credit in an IRA could be problematic. Talk your bank and get it straightened out. However, if you have specific estate planning objectives you're trying to address, the right source is an estate planner in your state. If the cost is an issue, your bank or brokerage firm, may have in-house estate planners that can help you.
Disclaimer:
Law Made Easy Press® provides practical and legal, tax, estate and financial information for educational purposes only. The goal is to help you best work with your professionals to save costs, and to obtain better service and results as an informed consumer. There is no assurance that the laws or sample documents are current, that the forms will achieve the desired goal in all circumstances. Laws change frequently and vary from location. Therefore, you should always consult with a local attorney, accountant, or other expert.
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