You need a Power of Attorney even if your accounts are POD

Even if your accounts are POD, your beneficiary does not have access to those accounts to manage them on your behalf while you are alive. For that, he or she will need your power of attorney.

Attorney Tom Olsen: Before the break we had a question about a power of attorney and that prompted you to think about questions that you're often asked about powers of attorney. Tell listeners what that was.

Chrissy: Absolutely, and that is this is that, often times when you're talking and thinking of power of attorney, people will often say to me, "Oh, Chrissy I don't need a power of attorney because I have listed all my financial accounts with POD, payable on death. I've listed a beneficiary," and I quickly explain to them that's perfect that you did that, and the POD or beneficiary designation will be exactly what happens when you pass away, but what happens if you are alive and incapacitated, and that's where the power of attorney comes in. It has nothing to do with who the POD is. The financial institution will not speak to the person just because they are a POD if this individual is alive.

Attorney Tom Olsen: Perfectly stated. So, POD is a great idea, but you still need a power of attorney to go with it. So, someone can manage that account for you, if you become incapacitated.