Holders of Bank accounts have been advised to add payable-on-death (POD) or transfer-on-death (TOD) beneficiaries to their accounts as the simplest way to leave to heirs any investment in the event of death.
Reverend Edward Randolph-Koranteng a Banking Consultant explained that beneficiaries under POD were different from traditional beneficiaries.
He explained that a beneficiary selection option was always displayed on the forms for an opening bank account., adding that “, a beneficiary is someone who would get your account upon your passing. A POD account is a formal name for a payable-on-death bank account”.
In an interview, he explained that a payable-on-death beneficiary, would not have immediate access to your funds until after your death whilst a payable-on-death beneficiary may be changed at any time by the owner. He noted how the monies of deceased individuals could be lying in accounts without family knowledge of it or even how to claim it.
“If you have designated someone as a POD beneficiary on your account, all they will need to do to access the funds is a valid government identification card and a copy of your death certificate when you pass away”, he noted.
The Banking Consultant added that anytime a bank learned about a deceased account holder, such accounts are frozen to stop fraud.
The Consultant, who is also the President of Idea Champions Centre said another means of allowing beneficiaries to have access to decreased funds was the Transfer on Death (TOD) which allowed loved ones to receive money in the event of passing.
He said, regardless of the benefits of Payment-on -death accounts, there were a few problems with a POD Account with the biggest disadvantage being that alternate beneficiaries could not be added to the account.
He encouraged account holders to nominate people they could trust and consider any potential repercussions before such actions are taken.