Can a representative payeeaccount be set up as POD?
The Social Security Administration suggests that Representative Payees set up accounts in a form such as "Sarah Jones, Rep. Payee for Harry Smith." The account is owned and controlled by the Representative Payee for the benefit of the Social Security recipient. Because the Social Security recipient can't control the account, he or she cannot designate a Pay on Death beneficiary, and because the Representative Payee is holding funds that actually belong to the Social Security recipient, it would be wrong for the Representative Payee to designate a Pay on Death beneficiary to take the funds in the event of the Representative Payee's death. There is simply no one connected to the account with authority to make a POD designation.
Published on BankingQuestions.com 7/08/10
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The Social Security Administration suggests that Representative Payees set up accounts in a form such as "Sarah Jones, Rep. Payee for Harry Smith." The account is owned and controlled by the Representative Payee for the benefit of the Social Security recipient. Because the Social Security recipient can't control the account, he or she cannot designate a Pay on Death 