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Beneficiary Type Checks

  • 1.  Beneficiary Type Checks

    Posted 08-11-2021 06:29 PM

    As we look to cleanup some giving data and to be consistent moving forward, I've noticed the following types of checks being handled differently over the years:

    Payable on Death (POD)

    In Trust For (ITF)

    As Trustee For (ATF)

    Transfer on Death (TOD)

    Totten Trust

     

    Any best practices around these different types of checks and whether to apply to an individual record or a trust/org type record?  From what I'm seeing most have an individual name on the check (the beneficiary) but depending on the type POD, ITF, ATF, TOD, or Totten it's treated differently when applying the gift to an individual record vs. trust/org.

    Thank you,

     



    ------------------------------
    Korey Janse
    Director, Gift Administration | Corporate Acct
    City of Hope
    kjanse@gmail.com
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  • 2.  RE: Beneficiary Type Checks

    Posted 08-11-2021 07:52 PM
    I've not developed any sort of compendium.  It seems that ofter there is no rhyme or reason - people just use a name that they like :-).  I have always felt that it is best when in doubt to contact the bank - or trustee.

    But here's a quick summary from my personal experience - in shorthand:
    • POD - The gift is from the individual (sort of like a bequest).  But here the individual sets aside money in a separate bank account with a named recipient to avoid probate.
    • ITF -   The gift is from the individual but has a trustee to manage the funds.  But the establishing document names the beneficiary much like the POD.  Think of the POD as an ITF without a trustee
    • ATF -  Same as ITF
    • TOD -  Same as POD
    • Totten Trust - Same as POD

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Beneficiary Type Checks

    Posted 08-12-2021 11:30 AM
    Thank you, John!