Because in some states the creditors take precedence over the recipient. So long story short she would become personally liable for your bills up to the amount that was in that account. Talk to your attorney
Example: Day 1: 88 year old father makes 64 year old girlfriend a POD on his million dollar bank account. Day 2: Girlfriend has 88 year old father killed. Day 3: Girlfriend brings death certificate to the bank to claim her million dollars. Banks are very reluctant to discuss what happened to this money with the 88 year old man's children so they can sue the bank for fraudulent conveyance based on the 88 year old man's lack of mental capacity to make a POD designation. On the other hand, the bank can just keep the money and lie to the children saying that the bank gave the million dollars to the unnamed beneficiary.
When I die, my daughter is POD on bank accounts. Why should I worry about past bills?
Because in some states the creditors take precedence over the recipient. So long story short she would become personally liable for your bills up to the amount that was in that account. Talk to your attorney
What happens to the POD money if the beneficiary child dies before the mother? Does it go back to the mother?
Example:
Day 1: 88 year old father makes 64 year old girlfriend a POD on his million dollar bank account.
Day 2: Girlfriend has 88 year old father killed.
Day 3: Girlfriend brings death certificate to the bank to claim her million dollars.
Banks are very reluctant to discuss what happened to this money with the 88 year old man's children so they can sue the bank for fraudulent conveyance based on the 88 year old man's lack of mental capacity to make a POD designation. On the other hand, the bank can just keep the money and lie to the children saying that the bank gave the million dollars to the unnamed beneficiary.