Quote:
Originally Posted by 911 Rod
When my father passed his beneficiary on his life insurance overrode his will.
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It's the same thing with CD's in the bank with a P.O.D. (Payable on Death) designation with a named beneficiary(ies). For example:
Bob had 3 children: John, Alex and Rachel. Of all of Bob's 3 children, only John had a child and we'll call her Betty. So Betty is the grandchild of Bob.
Bob had a CD at the bank notated with "P.O.D" with named beneficiaries John, Alex and Rachel, all to be paid equal amounts upon his death.
Bob also had a Will. In Bob's Will, he stated that he was to leave everything to his children and listed them as John, Alex and Rachel. The Will also included "per stirpes" that meant should any of the named beneficiaries to the Will predecease Bob, then that beneficiaries portion of the Estate would go to that beneficiaries child/children.
As fate would have it, John predeceases Bob. Bob figures that the Will, per stirpes, will provide Betty with what John would have received, so everything just rocks along as normal.
As fate would have it, Bob passes away. Now here is the important part of the "lesson":
The P.O.D. CD at the bank isn't a part of the Estate. It isn't controlled by the Will. It has named beneficiaries, being John, Alex and Rachel. John is no longer alive. So the bank is going to divide the CD between
the remaining named beneficiaries being Alex and Rachel. Betty doesn't have a dog in this hunt. The only way Betty would have been able to step up in the shoes of her late father John with regard to the CD is if she were named as a
contingent to John on the CD.