Phillip Cannella and Joann Small are true retirement phase experts and will help people in retired years with any financial issues that they have. A common issue Crash Proof Consumers approach Phil Cannella and Joann Small with is the expenses associated with probate.
While Phillip Cannella and Joann Small are not attorneys, Phil Cannella is still able to educate consumers on a little-known law that will help avoid probate with no cost to them. He explained this at a recent Crash Proof Retirement Educational Event:
“I can tell you how to avoid probate with the ink in your pen. You don’t need to go see your expensive attorney, but yet I’m not an attorney. I’m not licensed to be attorney. I’m a professional in the financial life insurance industry, but in every industry they have the tricks of the trade. Grandma used to tell me the butcher uses heavier paper to weigh the lunchmeat out. So, every industry has it’s tricks of the trade, and particularly the legal industry.
So, here’s how you do it (avoid probate). Most people have their names on their bank account, so you put your name and you add to the title of your name or your spouse, these three letters, P-O-D. POD, just add those three letters, ‘Pay On Death.’ List your beneficiaries and upon your death, you’ve already listed it, it’s gone through probate. They (your heirs) just have to show up with your death certificate and a photo ID; typically, their license. There’s no time delay, there’s no publicizing, it’s a private settlement between the bank and your heirs so no one’s going to fight for that money, there’s no time delay, there’s no attorney fees, it’s a very simple quick transfer.
Now if you want to get fussy, I’ll take you to the next level. How about if you want to pass your kids money through your bank account, but maybe the child is married and maybe after you pass that money, that IRA or that joint account, the kid gets divorced and half the money goes to the other side. What would you do then? If you want your money to stay in the bloodline, you add just a little saying. It’s well known in the legal industry, but you might not have heard of it, but it means to follow the bloodline. So if you’re child passes it goes to the grand kids and not their spouse. If that’s you it’s called ‘Per Stirpes.’ So, if I was passing my account to my daughter, it’d be Phillip J. Cannella III, POD [her name], beneficiary, Per Stirpes. You can list as many beneficiaries as you want and always list the percent.
If you have a security account, you could do something similar, like a Vanguard account, or a Fisher investment account, any account like that, you can put TOD. Same theory, but the three initials are ‘Transfer On Death’ as opposed to ‘Pay.’ TOD per stirpes it stays in the bloodline.”