Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
We have a customer who would like to name a trust as the payable on death (POD) beneficiary on her individual certificate of deposit (CD). Does Illinois law allow this? – IBA Compliance Connection

We have a customer who would like to name a trust as the payable on death (POD) beneficiary on her individual certificate of deposit (CD). Does Illinois law allow this?

by

Yes, a trust may be added as a beneficiary to a CD account. Under Illinois law, an account becomes a “payable on death” account when the accountholder signs an agreement providing that on the accountholder’s death, the account will be paid to or held by a designated beneficiary. The law defines the term “account” to include a certificate of deposit and “beneficiary” to include a trust.

For resources related to our guidance, please see:

  • Illinois Trust and Payable on Death Accounts Act, 205 ILCS 625/4 (“If one or more persons opening or holding an account sign an agreement with the institution providing that on the death of the last surviving person designated as holder the account shall be paid to or held by one or more designated beneficiaries, the account, and any balance therein which exists from time to time, shall be held as a payment on death account and unless otherwise agreed in writing between the person or persons opening or holding the account and the institution.”)

  • Illinois Trust and Payable on Death Accounts Act, 205 ILCS 625/2(b) (“‘Account’ includes any account, deposit, certificate of deposit, withdrawable capital account or credit union share in any institution.”)

  • Illinois Trust and Payable on Death Accounts Act, 205 ILCS 625/2(c) (“‘Beneficiary’ includes . . . a trust . . . .”)