hi lee phillips here i'm still a lawyer and they said i was supposed to tell a lawyer joke i told
one in the last video on co-trustees i don't have many lawyer jokes do you know how many
lawyer jokes there are there are actually only three all the rest of them are true
at any rate let's talk about PODs and TODs Pay on Death/Transfer on Death versus using
a trust and the PODs the TODs are becoming more popular the banks are encouraging you to do it
so that your bank account isn't caught up in probate
after you die if you name somebody for the pay on death or the transfer on death and instantly
upon your death that bank account transfers to that individual it's paid out to that individual
now you could put more than one name down as the recipient of the pay on death or the
transfer on death so people are coming in and they're listing all their kids
that's smart now i don't have to go through probate with that bank account well i'd prefer
to see you use a trust because you can get into trouble particularly if there are multiple people
on the POD or the TOD if one of those individuals dies before you or becomes incompetent
then the bank isn't going to know what to do they're going to require a probate order basically
so if you name the trust the trust is going to address should address anyway
what happens if one of the kids dies before you do or becomes incompetent before you die
and what happens to their share as we call it that isn't possible in the pod
and the TODs if something goes wrong if there's a hiccup then you've got a problem and the bank's
basically going to require the probate order the object is to avoid probate the object of the trust
is to avoid probate so the trust is just much more flexible and allows for hiccups to occur
and not really affect what happens whereas the TOD and the POD are very narrow
now get my ebook on how to use a trust so you know what to do uh just click below it's it's
down there i don't sell your information you're okay you're not gonna get 60 trillion emails
you will get an update now and then when i post a new youtube or when i write a new
article or that sort of thing but uh the pod has the problem of not being that flexible
if mom all she's got is she's living in the rest home all she's got is a bank account
okay use a POD use a TOD and name that individual by the way that individual gets it
if you go in and put the individual's name on the account then that person gets it too
but your account is exposed to their creditors during your lifetime so you don't ever put your
kids names on anything kids are like yogurt you never know when they're gonna go bad so keep
your kids names off of it name him as a transfer on death recipient or a pay on death recipient
if you need to and if mom's just got this bank account and nothing else fine just do that
don't worry about the big trust but if you are like many people you've got houses you've got
bank accounts and brokerage accounts and all this other stuff don't rely on the POD/TOD never put
the kids names directly on the bank accounts or the brokerage accounts or whatever it is that goes
right out around your will i could care less what your will says that guy gets it if their names on
the account is a joint tenant with you they get it so use the POD sparingly in some cases it works
good and it's better than the trust well it's never better than the trust but it's a ton cheaper
and it's a lot faster and a lot easier so consider the POD/TOD in certain circumstances but generally
if you've got a little more complicated than just a bank account mom's in the rest home situation
you're going to use the trust this is lee phillips talking about PODs and TODs versus a trust