If we have a child named as a beneficiary of an account or POD (Pay On Death) and that child goes into bankruptcy, can our assets be taken away?
As long as the child is a mere beneficiary, or POD, he or she is not the owner of the account. No lifetime benefit has been conveyed, and in the event the child is sued, or declares bankruptcy, your assets will not be implicated. However, this raises to important issues. First, confirm that your child is not a co owner of the accounts. Secondly, consider putting these assets into a living trust or a trust at your death, so that your daughter doesn't end up losing them.
Finally, these assets will remain in your taxable estate for both federal estate tax purposes and for Pennsylvanina inheritance tax purposes.
Attorney David M. Frees III whose practice involves trusts, estates, wills, and estate and asset protection planning, has just published a new (and free) guide for executors of wills probated in Pennsylvania.
If you are an executor, or if you need to update an old will, trust, or estate plan, or if you need to do one for the first time, call 610-933-8069 and ask for one of David's assistants for an appointment with David or one of his team.
Please tell us that you're calling from our estate planners web site and you will receive a bonus when you come for an appointment or you have a telephone conference with David.