Payable on Death (POD) designations allow you to name a beneficiary who will receive the funds in a specific account directly after your death, bypassing probate and ensuring a faster, simpler transfer of assets.

• POD designations apply to specific accounts: These are most commonly used for bank accounts, certificates of deposit (CDs), and certain investment accounts held outside of retirement plans.
• Assets transfer directly to the named beneficiary: Once a death certificate is provided, the funds are released to the person you’ve named, without going through your will or the probate process.
• You retain full control of the account while you’re alive: The beneficiary has no legal access to the funds during your lifetime and cannot make decisions about the account.
• POD is not the same as joint ownership: A joint owner can access the account while you’re alive. A POD beneficiary has no rights until after your death.
• You can update or remove a POD designation at any time: As long as you are mentally competent, you can change your beneficiary by completing a new form with your financial institution.
• Make sure your beneficiary information is accurate and up to date: Misspelled names, outdated contacts, or unclear designations can cause delays or legal disputes.
• POD designations override your will: If your will says one thing and your POD form says another, the POD designation will take precedence for that specific account.
• Multiple beneficiaries can be named: You can divide the account among several people by specifying percentages, but not all banks offer this by default—ask your institution.
• PODs don’t cover everything: Only the designated accounts will transfer this way. Real estate, business interests, personal property, and other assets may need to be handled through a will or trust.
• Adding a POD is typically simple and free: Most banks offer the option as part of their standard account services. It’s an easy way to streamline part of your estate plan with minimal effort.