Question of the Week

Posted: Mar 31, 2022 | Author: Cornerstone Compliance Team

beneficiary compliance POD

Question: When a member on a POD account dies, can we setoff against the funds in the account before the POD beneficiary makes a claim on the funds?

Answer: It depends on state law.

In Texas and Oklahoma, yes. The state legislatures on both states have enacted legislation that allows an institution to setoff against funds on deposit before a payable-on-death beneficiary receives any funds.

Texas law can be found in the Estates Code, Section 113.210 ( https://statutes.capitol.texas.gov/Docs/ES/htm/ES.113.htm#113.210)

Oklahoma’s law can be found at Title 6, Section 201 ( https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=76929)

In Arkansas, Section 23-32-508 suggests a similar right on agency accounts. Since this language is less clear, we would recommend you consult your counsel for an interpretation.