Website design By BotEap.comA special bank account commonly known as a Totten Trust in California is the subject of this article. This is a simple and effective method of avoiding probate, which is also known as a pay-on-death (POD) bank account. A POD account is basically a bank account for which you name a beneficiary, who inherits the funds in the account after your death. The budget crisis now affecting California courts for the past several years has resulted in long delays in obtaining a hearing date, so it is vital to avoid the time and expense of probate court proceedings.

Website design By BotEap.comNaming a beneficiary using this particular method will be of no consequence while they are still alive. The beneficiary has no rights to the money during his lifetime. This means that the beneficiary cannot withdraw money and the money is not considered an asset of the beneficiary if the beneficiary gets divorced, goes into debt and is sued by creditors, or files for bankruptcy.

Website design By BotEap.comPOD accounts are widely used for the simple reason that they provide an easy way to transfer money upon death without the hassle and expense of lengthy probate court proceedings. Setting up a POD account or converting an existing checking or savings account to a POD account involves completing a few documents provided by the bank, naming the POD beneficiary. Papers should be delivered to the bank, so that the bank has a record of who the beneficiary is.

Website design By BotEap.comYou can close the account, withdraw some or all of the funds, or name a different beneficiary at any time. The money in the account is not protected from your creditors; it is like any other bank account.

Website design By BotEap.comIt’s that easy. After his death, the beneficiary simply goes to the bank and collects the funds in the account. In California, there is a short 40-calendar-day waiting period before a bank releases the funds, but a probate proceeding is not required. Evidence of death, such as a certified copy of the death certificate and proof of the identity of the beneficiary, is usually all that most banks require. Banks have been doing this for years and are very familiar with the process as they provide the forms on which account holders designate their beneficiaries. Most credit unions are also familiar with this process.

Website design By BotEap.comThis is a relatively simple method to avoid underutilized probate court time and expense.