How to avoid probate on your bank accounts

You can avoid probate on all bank accounts by make them POD (payable on death), TOD (transfer on death) or ITF (in trust for) your adult children or anyone else.

Attorney Tom Olsen: Sharon, you're on News 96.5, go ahead.

Sharon: Yes. Is it true that if you have funds, over $100,000, in a bank account that the amount over $100,000 will have to go through probate even though you have a beneficiary on the account?

Attorney Tom Olsen: The answer is no, Sharon.

Sharon: Thank you. [laughs]

Attorney Tom Olsen: Sharon, what you are talking about is this, is that there is simple, easy tool for avoiding probate on bank accounts. Checking, saving, CDs, money market, investment non-IRA accounts. By keeping those accounts in your name, if you are a single person, or both your names if you're a married couple, but making those accounts POD, Payable on Debt to your children. I'm talking about adult children here. If you make your bank accounts POD for your children and you pass away, the only thing they will need to do is to show the bank or credit union or investment company, your death certificate and they'll turn the money over to them, no probate required. Some banks use a term T-O-D, Transfer on Debt. Some banks use a term, I-T-F, In Trust For. They are all the same thing and you can use it whether you got $100 in there or $1 million. I've never heard of a $100,000 cap, Sharon, so I don't think that that's true.

Sharon: Thank you very much. I'm glad to hear that. Thank you.

Attorney Tom Olsen: All right Sharon. Thank you for calling. We appreciate it.