Question

Explain the advantages of a POD account. Explain what happens to an account titled in joint tenancy with rights of survivorship if one of the owners dies.Explain how an individual can increase their credit score.

Answer 1

Payable on death (POD) is a bank account of an individual to designate a beneficiary to inherit the money or assets in the account after his or her death.  The assets will be transferred immediately after the death of the client.

Advantages of a POD account

• In Payable on death account, the account owner can increase his coverage limit
• There can be more than one beneficiary in POD account
• POD is more powerful than a last will prepared by the client. Preference is for the beneficiary mentioned in the POD, than in Will
• It offers quick means of dispersing assets after death
• There is comparatively lesser probate process. It does not require a long period of time to complete the process

Joint POD account

If the Payable on death account is jointly owned by more than one person and if one of the owners dies, the assets in the account belong to the survivor. This is as per the “right of survivorship’’

How to increase credit score

• Pay the bills on time by tracking them regularly
• Check regularly the Accuracy of the Credit Reports
• Open only Secured Credit Cards
• Open new credit cards if needed. Limit opening of credit cards
• Monitor the credit activities regularly