Can an LLC assign a POD on a business account?
Ultimately, this is a state law question, and so you should check the rules in the state where the deposit account is opened. However, it would be very unusual for this to happen. An LLC is an entity and doesn’t “die”, and therefore the POD designation wouldn’t really do anything since there is never a “death” of the LLC. Even if the owner of the LLC dies, the LLC continues on in existence.
If the customer wants to leave the business to a specific person, then it would be best to amend the formation documents to consider succession. The bank should suggest that the customer speak with their attorney to help them with corporate succession management.
Compliance Alliance offers a comprehensive suite of compliance management solutions.
To learn how to put them to work for your bank, call (888) 353-3933 or email email@example.com.