Quiz for Who’s Got the Power: An Overview of Guardianships, Trusts, Power of Attorney & Decedent Accounts

1. Hal came to the bank, and, by himself, opened a deposit account and filled out the signature card, naming his son, Nick, as his payable-on-death (P.O.D) beneficiary. What sort of account has Hal opened?

2. Penelope is listed as the Attorney-in-Fact on the bank account of the account owner, Julian. Julian passed away March 1, 2023. Penelope comes to the bank on December 1, 2023 and requests copies of all account statements for the year of 2023. Which records should the bank give Penelope?

3. Theo has recently set up a revocable trust with the bank. Theo named four beneficiaries on this trust, namely, his wife Laura, his sister, Parker, his best friend, Erin, and his state recognized trust for the preservation of his teddy bear, Thaddeus. Which of the these would not be considered an “eligible beneficiary” for FDIC deposit insurance purposes?

4. Ralph came into the bank to open an account with his new wife, Jennifer. Upon opening the account, both Jennifer and Ralph signed the signature card and indicated that they intended a right of survivorship to be present on the account. This, alone, is sufficient to create a right of survivorship for both Ralph and Jennifer.

5. Jim opened an account at the bank naming three payable on death beneficiaries, Joe, Fred, and Tammy as the beneficiaries. Jim passed in June of 2023. In early July, Jim’s estate representative, Eli, comes into the bank asking for all of the funds in the account, claiming they are probate assets and requesting they be paid to him immediately. Can the bank pay Eli these funds?

6. What is the main difference between a formal and an informal trust?

7. Under Regulation Z, which of the following trusts would be required to be treated as a “natural person” when it comes to offering the protections available under the Regulation?

8. What is the main difference between a guardian of the person and the guardian of the estate?

9. Sam and Don had a joint account without the right of survivorship. On June 1, 2023, Sam passed away. On June 4, before any representatives of Sam’s estate reached out to the bank, Don came into the bank and asked to withdraw all of the funds from the account and the new teller on staff allowed Don to do so. Did the teller do something wrong?

10. Regulation Z, Regulation DD, and Regulation E all treat trust accounts the same.