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Charity beneficiary of bank account
- Thread Starter CindiW
- Start date
Zigner
Well-Known Member
They claim it through whatever process the bank requires. If you're asking us how this unnamed charity will process the matter internally, then your guess is as good as ours.
zddoodah
Well-Known Member
I assume you're talking about a pay-on-death beneficiary, and I think your "real" question is how will the charity know that you have died. That question raises no legal issue, but you obviously can let the charity know that you've designated it as a beneficiary and request that the person you nominate to handle your affairs after you die notify the charity.
Zigner
Well-Known Member
I was coming back to add something similar, but you beat me to it
adjusterjack
Super Moderator
Does the charity know that it's your beneficiary?
I have spoken to the charity and they gave me tax i.d. That's a good question...I haven't filled out the form at the bank yet. I do know friends I can trust to let the charity know if we die. But that's what I need to know, thanks, you're always been a good responder.
Yes, thanks.I was coming back to add something similar, but you beat me to it
Thanks, I appreciate your help. We have a couple of friends who can notify the charitable institution.
I've been having some trouble with the bank. Several of the clerks behind the desk (not tellers) told me no I can't have a charitable institution as beneficiary. I am still going through red tape to get an authoritative answer in print. I know Florida allows charities to be beneficiaries but personnel just throw you off and it's taking me hours to get a real true answer. We moved to Florida and unfortunately joined this very large bank who keeps patting itself on the back but no service. No answer. They keep telling me manager will call me but never does. It gets frustrating. Once we settle this I am probably going to switch banks but it's been harrowing switching with automatic deposits and withdrawals, etc. Ok thanks, I'll have to keep harassing the bank officers, who are often missing and don't answer the phone. Big bank don't want to say the name. Sad. I'm handicapped so it's a problem going there and then getting the wrong information.
army judge
Super Moderator
If you set up a bank account as "payable on death," the account will pass to the beneficiary whom you name upon your death. The assets in the account do not have to pass through probate, the court process of approving your will and overseeing the distribution of your estate.
Scope
When you open a bank account, you have the option of designating a beneficiary of the account to whom the funds will automatically pass when you die. A beneficiary is not the same as a joint account holder who has a right to deposit to and withdraw from the account before and after your death. The Florida law covering payable on death accounts covers all deposit accounts with a payable on death designation, including checking, money-market and certificates of deposit. POD accounts are distinct from those that transfer-on-death, a designation used for stock certificates and investment accounts.
Survivors and Beneficiaries
If a POD account is a joint account, Florida law allows the account to pass to the surviving account holder, not to the beneficiary, upon the death of one of the joint account holders. If the account holder dies and there is more than one beneficiary, the beneficiaries hold equal shares of the account (in other states, account holders may set a different share arrangement for beneficiaries; in Florida, the equal-shares rule prevails). Until the death of the account holder(s), the beneficiary or beneficiaries have no claim on the account funds. Nor does a beneficiary have any voting rights vested in the account if opened through a credit union.
Payments
The Florida statute also governs payments by the institution where the account has been established. The account may pay any party to the account at any time on request, or to the beneficiary if the beneficiary presents proof of death of all parties to the account. The account may also pay a personal representative, or heirs of the account holder, upon proof of death of the account holder as well as all other parties and beneficiaries.
Claims
The law in Florida protects banks and other institutions from any claim on a payable on death account, as long as the institution made payments to parties and/or beneficiaries in accordance with the law. In effect, banks cannot be sued by anyone for how they handle a payable on death account as long as the bank followed the state's legal rules. As an important adjunct to this rule, Florida also expressly allows payments to parties and beneficiaries whether or not they are disabled or otherwise incapacitated.
Considerations
An important court case, reached in federal district court, found that the Florida statute did not limit beneficiaries to people. A person establishing a POD account may designate a charitable institution -- in this case, the Salvation Army -- as a beneficiary. By extension, a POD account in Florida may also have a business organization, partnership, or municipality as a beneficiary. This is not always true in other states, however, including Ohio where a beneficiary must be a person. The beneficiary, whether an organization or a person, must conform to the law in presenting proof of death of the account holder before having any claim on the account.
The Payable on Death Statute in Florida
Scope
When you open a bank account, you have the option of designating a beneficiary of the account to whom the funds will automatically pass when you die. A beneficiary is not the same as a joint account holder who has a right to deposit to and withdraw from the account before and after your death. The Florida law covering payable on death accounts covers all deposit accounts with a payable on death designation, including checking, money-market and certificates of deposit. POD accounts are distinct from those that transfer-on-death, a designation used for stock certificates and investment accounts.
Survivors and Beneficiaries
If a POD account is a joint account, Florida law allows the account to pass to the surviving account holder, not to the beneficiary, upon the death of one of the joint account holders. If the account holder dies and there is more than one beneficiary, the beneficiaries hold equal shares of the account (in other states, account holders may set a different share arrangement for beneficiaries; in Florida, the equal-shares rule prevails). Until the death of the account holder(s), the beneficiary or beneficiaries have no claim on the account funds. Nor does a beneficiary have any voting rights vested in the account if opened through a credit union.
Payments
The Florida statute also governs payments by the institution where the account has been established. The account may pay any party to the account at any time on request, or to the beneficiary if the beneficiary presents proof of death of all parties to the account. The account may also pay a personal representative, or heirs of the account holder, upon proof of death of the account holder as well as all other parties and beneficiaries.
Claims
The law in Florida protects banks and other institutions from any claim on a payable on death account, as long as the institution made payments to parties and/or beneficiaries in accordance with the law. In effect, banks cannot be sued by anyone for how they handle a payable on death account as long as the bank followed the state's legal rules. As an important adjunct to this rule, Florida also expressly allows payments to parties and beneficiaries whether or not they are disabled or otherwise incapacitated.
Considerations
An important court case, reached in federal district court, found that the Florida statute did not limit beneficiaries to people. A person establishing a POD account may designate a charitable institution -- in this case, the Salvation Army -- as a beneficiary. By extension, a POD account in Florida may also have a business organization, partnership, or municipality as a beneficiary. This is not always true in other states, however, including Ohio where a beneficiary must be a person. The beneficiary, whether an organization or a person, must conform to the law in presenting proof of death of the account holder before having any claim on the account.
The Payable on Death Statute in Florida
adjusterjack
Super Moderator
We? You and your spouse?
Judge brings up a good point. If you and your wife are joint account holders with the charity as beneficiary, it appears that the surviving spouse will get the money and not the charity. At least not until the surviving spouse dies with the charity still listed.
The chances of spouses dying together in a common accident are very low.
You might want to rethink the bank account and look into a charitable trust instead. That can be set up where the trust owns the account and the trustee can be obligated to make the donation from the trust's assets.
Meantime, if you are not happy with the runaround you are getting at the bank, find another bank.
How much money are you leaving to this charity?
You're right if one of us dies the other spouse is the beneficiary, since it's a joint account. At least the bank told me (not sure how true this is though) if one of us dies the other will have to bring in death certificate.
I will definitely look into a charitable trust. I do not want to say how much money I'm leaving. For me it's a lot of money. For others it's not so much. Here in Florida there are ads for seminars for people to preserve their money, etc., free dinner, etc. but only if they have assets of over $500,000. That's not us. Just to say.
It's true about the low chance of us dying together. On the other hand, it's possible one or both of us may be incapable of making monetary decisions, including the remaining spouse. I should be speaking to a lawyer soon enough but I was kind of hoping to get it set up with the bank asap.
I did read something about charitable institutions in the state of Florida, but the bank definitely denied the opportunity to leave the account POD to a business. And the reps seemed to confuse charity with business. In my case, however, it's a charitable institution. It really seems the people I'm calling about this at the bank do not know about this, and I'm having a hard time getting their policy in print. I'll have to waste more time calling tomorrow. It's terrible. Furthermore, in the meantime due to this difficulty I spoke to two more banks, thinking I would change asap. One said no, they don't do this and the other said I have to have a trust to leave to a charity. I have another bank to call. Now I'm beginning to wonder just how many banks there are in south Florida.
zddoodah
Well-Known Member
If? Optimism?
Just because it's legal doesn't mean the bank can't say no, so you might want to look for another bank.
I would imagine that's the desired result but agree that, if not, a trust would be the way to go.
Yes, if one of us die, the other will get the account. The question is if we both die, then we want the charity to get the remaining money. The bank has been very uncooperative, I believe it's ok by the bank to have a charity as beneficiary, but no one is giving me a straight answer, saying they're short-handed, etc., have to look into it, etc. Kind of sad with today's current situation. I'll keep on it though to get a straight answer.If? Optimism?
Just because it's legal doesn't mean the bank can't say no, so you might want to look for another bank.
I would imagine that's the desired result but agree that, if not, a trust would be the way to go.
Zigner
Well-Known Member
adjusterjack
Super Moderator
You're wasting your time tilting at that windmill.
Find another bank.
But ask the question and don't open the account without an answer.
zddoodah
Well-Known Member
Death is not a matter of "if." You will die, as will your spouse. If your account is a joint account, when one of you dies, the survivor will become the sole owner. When the survivor dies, then the money will go to the designated pay-on-death beneficiary. If your bank is uncooperative with respect to the designation of a POD beneficiary, consider seeking out a new bank.
OK, somebody told me that we should have two wills. One for myself and one for my husband. But everything we have is agreed on as to how any assets will be distributed for each or both. I will have to see a lawyer, I just hate to spend that much money.
I believe you are correct. The problem is we had such trouble switching accounts to this bank when we moved from another state. And automatic deposits and withdrawals. But I may do that as soon as this is settled. You're right. I can blame it on the Covid, their not having enough staff or not paying the clerks enough money to keep them, etc. and etc. But if things get settled down before we die (yes, after we won't know about it, someone mentioned to me) I will probably look for a more considerate bank.
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