ATTORNEY NEWSLETTER
What Are Payable On Death Beneficiary Designations?
Importance Of Keeping Designations Current
Case Example Of What Can Go Wrong
A payable on death (POD) beneficiary designation is a way to name a beneficiary who will automatically receive the assets of a bank, retirement, or other investment account or annuity when the account owner dies. POD designations are also known as transfer on death (TOD) designations. If you have a POD or TOD on your account, one of these acronyms likely appears in the name of your account (i.e., “John Smith TOD Jane Doe”). Once a designation is made, it remains irrevocable until you revoke the designation or change it by naming someone else. As a case example discussed below illustrates, it is very important to keep these designations current and consistent with the changes in your life. For example, if a spouse or boyfriend or girlfriend is your TOD/POD beneficiary and you get divorced or break up, you will want to change any designation favoring your ex. Similarly, when you begin having children, you may want to add them on your accounts as beneficiaries. You can designate a sole individual as 100% beneficiary or you can divide up the amount among different TOD/POD beneficiaries in percentages. Seniors and their families should be very mindful of current TOD/POD designations as caregivers, new boyfriends or girlfriends or second spouses and others frequently get these designations changed through undue influence or fraud as a form of financial elder abuse of a senior. If you or a loved one has been the victim of financial elder abuse by a caregiver or other person in San Francisco, call us today at (415)441-8669. We will pursue all persons responsible for a senior’s injury. Our toll-free number is 1-888-50EVANS (888-503-8267).
Case Example
In one recently reported case,[1] a decades-old beneficiary form has ignited a fierce legal battle over a deceased man’s hefty retirement account. The designated beneficiary is set to inherit nearly $1 million from her ex-boyfriend’s retirement plan, but the deceased man’s brothers are contesting the claim. The woman dated their deceased brother in the 1980s, and in 1987, named her as the sole beneficiary on a handwritten form – a designation that takes precedence over a will. Now, the man’s brothers, who only recently learned of the woman’s claim, are taking legal action. Court documents reportedly detail how the decedent and his former girlfriend ended their live-in relationship decades ago and each moved on to other partners or spouses. During their relationship, however, the man had named the woman as the payable on death beneficiary of his employer’s retirement account and never changed it.
Following his death, his brothers became co-administrators of his estate. They were surprised to learn about the woman’s beneficiary status. She now stands to inherit the entirety of the man’s retirement plan, which has grown to over $1.15 million. The brothers are fighting the beneficiary and the man’s employer in court, arguing that the company failed to properly inform him about his beneficiary options. The employer claims it provided adequate warnings, including online statements and service provider change notifications.
This case highlights a growing trend: disputes over who inherits retirement savings due to outdated or incomplete beneficiary forms. As millions of Americans accumulate significant retirement funds, these situations can lead to unexpected windfalls for some and heartbreak for others. Beneficiary designations are also fertile ground for financial elder abuse by greedy caregivers, “new” boyfriends or girlfriends, second spouses and others who through fraud or undue influence get an ailing senior to change payable on death beneficiaries to benefit them and cut out family members. We at Evans Law Firm have seen this form of financial elder abuse in multiple cases. If you have an older loved one who may be susceptible to abuse or manipulation be sure you help him or her by checking their beneficiary designations to make sure the persons named are truly the persons your older loved one wishes to benefit.
Contact Us
Ingrid M. Evans represents elder and dependent adults in San Francisco who are victims of any kind of financial exploitation or other abuse. Ingrid can be reached at (415) 441-8669 or TOLL FREE 1-888-80EVANS (888-503-8267), or email us at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>.
[1] Evans Law Firm, Inc. is not involved in the reported case in any way.
