EARLY VOTING LOCATIONS (AVAILABLE THROUGH AUG. 26)
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Supervisor of Elections Office,
240 S. Military Trail, near West Palm Beach
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15801 Orange Blvd., Loxahatchee
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Acreage Branch Library, Belle Glade Branch Library,
725 NW Fourth St., Belle Glade
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Boca Raton Downtown Library,
The people running for office in their own words,
myPalmBeachPost. com/kyc
400 NW Second
Ave., Boca Raton
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Ocean Ave., Boynton Beach
■ 11303 Campus Drive, Palm Beach Gardens
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14350 Hagen Ranch Road, west of Delray Beach
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Military Trail, Jupiter
Boynton Beach Civic Center, Gardens Branch Library, Hagen Ranch Road Branch Library, Jupiter Community Center,
128 E.
200
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4020 Lantana Road, Lantana
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Lantana Branch Library, Palm Beach County Convention Center,
650 Okeechobee Blvd., West Palm Beach
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South County Civic Center,
16700 Jog Road, Delray Beach
■ South Florida Fairgrounds, 9067 Southern Blvd., west of West Palm Beach
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Fern Drive, Wellington
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Wellington Branch Library,
1951 Royal
Wells Recreation and Community Center, West Boca Branch Library,
2409 Avenue H W., Riviera Beach ■ 18685 State Road 7 (U.S. 441), Boca Raton
Question: Probate avoidance was the topic of a recent column you wrote. You advised against using joint accounts and referred to “better options.” Would one such opti onbeaccountsproperly designated as “payableon-death” or “transfer-ondeath” by the depository financial institution? I have never seen this simple and easy option discussed as a possible alternative to putting such assets in a trust.
Answer: Payable-ondeath (POD) and transferon-death (TOD) accounts can avoid probate in some instances, but they are not foolproof. These accounts can still end up in probate under certain circumstances, as well as present other complications. This week I’ll talk about the complications that may arise if a POD or TOD beneficiary predeceases you.
Most financial institutions no longer permit a “per stirpes” designation (authorizing a deceased beneficiary’sshareto g oto the beneficiary’s children). This protects the institution from liability if it fails to properly distribute the funds to a deceased beneficiary’s children, which might happen if the institution does not know of their existence, can’t locate them, etc.
Every financial institution has its own policy for handling the account if one or more beneficiaries has predeceased the account holder. Some institutions will distribute the money equally among the other beneficiaries, which means the deceased beneficiary’s children will get nothing. Other institutions will make the deceased beneficiary’s share payable to the account holder’s estate — so the account will end up in probate anyway.
I urge readers with POD or TOD accounts to find out what their financial institution’s policy is, then evaluate how it will impact your beneficiaries. (Also check up on the policies of the custodians of your 401(k) and IRA.) For the typical account holder who plans on naming children as beneficiaries, POD and TOD accounts present risks that make establishing a trust a better probate-avoidance tool.
I’ll expand on this topic in next week’s column.
Joseph Karp, a member of the Florida and New York Bars, is a Nationally and Florida Bar Certified Elder Law Attorney and founder of The Karp Law Firm, located in Palm Beac ha nd St. Lucie counties. The firm assists clients with wills, trusts, Medicaid and VA benefits planning, special needs planning, asset preservation, probate/trust administration and estate litigation.