Legal Question in Wills and Trusts in Illinois
POD account and creditors - Illinois
My father died intestate, and all his accounts were TOD/POD, including IRA annuities and his checking account, and I am the sole beneficiary. He had only small amount of money that was in his checking account, and I signed a statement from the bank stating that he did not have any outstanding debt. I did not file a small estate affidavit because there were no assets outside of the POD accounts. I cannot find a clear answer to this question: In Illinois, do creditors have to be paid from a POD account before the beneficiary can access the funds? I have not done anything with this money because the answer is unclear. My father will owe federal taxes on his final return, and another creditor has inquired about his estate (which does not exist). Thank you for your advice.
1 Answer from Attorneys
The answer is maybe. A motivated creditor could institute a lawsuit to recover funds in your hands as a transferee, but the likelihood of this happening is a function of the type and amount of the debt. The TOD/POD designation puts the burden on the creditor to perform some action to collect the debt.
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