If a beneficiary named by the POD account owner predeceases the owner, then the money remaining in the account will be paid equally to the surviving beneficiaries, if named.
This is why giving consideration to whom you name is important. Scaling the percentages of the beneficiary is another tactics to enable for this possible situation.
Here is how…
Name your main beneficiary as a 95%-99% beneficiary of your account (if possible). Then, the remaining 1%-5% to another person. If the main beneficiary passes, the remaining monies will be passed to the living beneficiary.
This situation is also a good reason to keep up to date with your retirement and end-of-life plans, as things can and do change over time. We want to help you meet your needs, so contact First Choice Federal Credit Union today concerning our First Choice POD solution.