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  1. #1
    Join Date
    Oct 2016
    Posts
    11

    Default Can a Payable-on-Death Beneficiary Gift the Account Back to an Estate for Probate

    My question involves estate proceedings in the state of: Wisconsin

    As the administrator of and heir in an estate, I have concluded that a simple solution to the conflict between the will's obvious intention and the prior POD assignments of accounts, would be to deposit a good sized bank CD into the estate account as if it had been only in the deceased gentleman's name, and list it as part of the estate's bank balance in the inventory. It was legally a POD with myself as beneficiary. This would ensure significant residue for the named charities after settlement with the two designated money beneficiaries.

    My question is whether this is that simple (?). The bank had both SS numbers. Is such a transfer legally filed with or reported to any governmental body? While I should perhaps report a gift to the estate, there wouldn't be any tax implications, so I would probably not bother because there would be no penalty. Probate records are public and the charities are entitled to any records filed with the court, of course, so I'd rather avoid any unusual letters of explanation in the case.

    I'll "bump" my first thread for background in this situation.

  2. #2
    Join Date
    Sep 2010
    Posts
    19,654

    Default Re: Can a Pod Beneficiary Simply Gift Back to an Estate for Probate

    You should keep everything in the same thread. Nobdoy wants to search all over the sites for the details (whether you obnoxiously bump them or not).

    No, having a beneficiary deposit it back into the account is NOT going to undo whatever mistake that may have been made. If the item hasn't been paid out yet to the POD beneficiary, they may reject it and have it go to the estate. Not knowing any other details, all I can do is suggest you get legal assistance before you compound your previous errors with further ones.

  3. #3
    Join Date
    Oct 2016
    Posts
    11

    Default Re: Can a Pod Beneficiary Simply Gift Back to an Estate for Probate

    Ouch!! I simply thought it was a separate issue and not necessary for everyone to read the background if they didn't want to do so. The CD has not been paid out yet so I take it that transferring or depositing it into the estate account would constitute "rejection"?

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Can a Pod Beneficiary Simply Gift Back to an Estate for Probate

    Quote Quoting partlycloudy
    View Post
    Ouch!! I simply thought it was a separate issue and not necessary for everyone to read the background if they didn't want to do so. The CD has not been paid out yet so I take it that transferring or depositing it into the estate account would constitute "rejection"?
    the holder of
    the account will not allow the transfer of the contents of the account unless the POD beneficiary formally rejects acceptance. The adminstrator
    of the estate cannot touch the contents until it is formally rejected. Technically it is not an estate asset the instant the account holder dies. In rejecting the distribution the assets are put back into the estate.

  5. #5
    Join Date
    Oct 2016
    Posts
    11

    Default Re: Can a Pod Beneficiary Simply Gift Back to an Estate for Probate

    Quote Quoting jk
    View Post
    the holder of
    the account will not allow the transfer of the contents of the account unless the POD beneficiary formally rejects acceptance. The adminstrator
    of the estate cannot touch the contents until it is formally rejected. Technically it is not an estate asset the instant the account holder dies. In rejecting the distribution the assets are put back into the estate.
    Thank you, jk. I knew it was not an estate item, and merely wanted to know the best way to get it to the estate. It sounds like a formal rejection is the best ticket there, as the crow flies. I'll discuss that with the bank.

  6. #6
    Join Date
    Oct 2014
    Posts
    7,914

    Default Re: Can a Payable-on-Death Beneficiary Gift the Account Back to an Estate for Probate

    Quote Quoting partlycloudy
    View Post
    My question involves estate proceedings in the state of: Wisconsin

    As the administrator of and heir in an estate, I have concluded that a simple solution to the conflict between the will's obvious intention and the prior POD assignments of accounts, would be to deposit a good sized bank CD into the estate account as if it had been only in the deceased gentleman's name, and list it as part of the estate's bank balance in the inventory. It was legally a POD with myself as beneficiary. This would ensure significant residue for the named charities after settlement with the two designated money beneficiaries.
    Taking the funds yourself and then gifting them back to the estate would be tax inefficient as it then may use up some of your lifetime unified credit against federal and estate gift taxes. I suggest two better ways to do this would be to either (1) gift the money yourself directly to the charities (which may get you a charitable deduction on your federal income tax return) or (2) do a formal disclaimer of the POD account, if you still have time to do so, which would result in the account going to the estate if there are no alternate beneficiaries listed on the account.

  7. #7
    Join Date
    Oct 2016
    Posts
    11

    Default Re: Can a Payable-on-Death Beneficiary Gift the Account Back to an Estate for Probate

    Thanks a lot, TM! I came across the term "Qualified Disclaimer" when I used your information about a formal disclaimer to do the google thing, and that is just exactly what I was trying to research. It is really important to me that the charities receive contributions from the gentleman who is footing the bill but no longer here, and not from me "in honor of" or "in memory of." I have no desire to be a part of the permanent record of them. There is plenty of time to use this tool.

    I did consider the tax implications, and they aren't important to me, in my case.

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