Q: If an account has multiple Pod beneficiaries on it and one beneficiary passes before the account owner, would the remaining Pod beneficiaries will receive the funds in the account upon the death of the account holder? In other words, none of the funds would be paid to the deceased POD’s heirs?
A: Estate law varies by jurisdiction but generally speaking, a POD beneficiary or a POD beneficiary’s estate only has a valid interest in account funds in the account owner predeceases them. In the event the account owner passes away and then the POD beneficiary subsequently passes away, then the POD beneficiary’s estate generally has a valid interest in the account and the estate should receive the POD beneficiary’s interest. If the beneficiary predeceases the account owner, then the beneficiary generally has no interest in the account and that interest is divided between the remaining POD beneficiaries, if any.
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