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Piggyback on POA
Old 10-14-2020, 02:51 AM
  #1

I was reading all the posts about the trouble that Ima is having with the bank. I hope it gets fixed soon.

I am steaming mad for all that trouble they are having. Now I am thinking... is it easier to have your name added to an account instead of a POA?
Whatís the advantage of having ďpay upon deathĒ on your bank account instead of POA?
I would think POA could handle everything.


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Old 10-14-2020, 04:03 AM
  #2

I do know that a POA is only legal as long as the person is alive. Once they pass, a POA is no longer in effect.
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Old 10-14-2020, 04:05 AM
  #3

As I understand the question, it can be easier to add your name to an account. My parents added my brother to their account and that made it very easy when my mom became unable to take care of her banking. My brother was able to easily handle her banking affairs with no further paperwork. When I saw how easily it worked, I added my son and daughter to my account as I am on my own. However, the difference is trust I think. When a person is added to your account they have access at anytime if they so choose. My brother never knew anything about my parents accounts until my mom asked him to do so. My kids will do the same. This is my understanding. I'm sure PTers will let us know all the information.
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Old 10-14-2020, 04:27 AM
  #4

I'm not versed on the advantages of POA but like others I was added to my mom's accounts so that I could write checks for her after arthritis and beginning of memory problems became evident. It made it so easy when she passed. The account was still functional. Especially for auto payments like electric, gas, etc. until the estate was sold.
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Old 10-14-2020, 05:27 AM
  #5

When you add a family member to the account they have full access as if it is their money. If they are dishonest they can take money and you have no recourse.

Depending on where you live there could be tax implications if the person you add to the account dies. In order to have their name taken off the account you need a death certificate. Then you may be required to pay estate tax on 50% of that account. You would be paying estate tax in your own money.

If a POA uses the money in a way that is not in line with the account holders interest they can be prosecuted.

When my dad was sick the bank encouraged us to pursue POA over adding a name. We did. Then my brother went and added his name to the account as well as having POA. Iím sure we will have all kinds of messes when my mom dies.


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Old 10-14-2020, 05:41 AM
  #6

Iím not positive, but I think another personís name on your account also affects credit, loans, and other financial business
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Poa
Old 10-14-2020, 07:55 AM
  #7

A POA is quite handy for all legal matters and in dealing with many health agencies, hospitals, assisted living, etc. I don’t think it gives you much power over bank accounts or investments, etc.

I was on my mom’s bank account for years before she died. Made paying bills and transferring money a breeze. Had no tax implications when she passed.

In my experience, you should have both.

Last edited by Keltikmom; 10-14-2020 at 07:58 AM.. Reason: Added last sentence.
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Old 10-14-2020, 08:05 AM
  #8

It is easier to have both. But, whoever you put on the account has to be trustworthy. A friend lost almost everything when the son-in-law convinced the daughter, who was on the account, to transfer most everything to an account he would manage.

Both my brother and I were on my mom’s accounts. She put us on after our dad died. It made it very easy for me to manage and for us to divide when she died.

Right now my kids are payable on death or beneficiaries on everything. There is a POA, but as of yet I have not added them to the account.
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two names
Old 10-14-2020, 08:43 AM
  #9

Our attorney suggested adding two names to my mom's account. My sister and I are on her accounts but I handle everything.
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Poa
Old 10-14-2020, 10:58 AM
  #10

Keltikmom:
Quote:
In my experience, you should have both.
If you have both, the POA supersedes the name on account. Ask me how I know. I knew that POA ends at death. I thought since my name was on the account, I would have access to that money and could continue to write checks. Checks bounced and made a number of things more difficult.

Payable on death really means payable upon a death certificate.


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Old 10-14-2020, 01:15 PM
  #11

I had a POD on a family member's bank account. Upon his death, I was easily able to deal with the account--withdrawing the balance and closing out the account. It might have helped that I grew up with the bank manager!
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