Simplify the transfer of your assets with Payable on Death (POD) designations

The Payable On Death (POD) Beneficiaries Hub

This hub provides all the information you need to understand how POD accounts work, their benefits, and how to set them up. Whether you’re looking to avoid probate, ensure your loved ones have quick access to funds, or streamline your estate planning, our resources will guide you every step of the way.

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Frequently Asked Questions About Payable on Death (POD) Beneficiary Designations

A Payable on Death (POD) designation is a financial account feature that allows the account owner to name one or more beneficiaries who will receive the funds in the account upon the owner’s death, bypassing probate.
During the account holder’s lifetime, they maintain full control over the funds. Upon their death, the named beneficiaries can claim the funds directly by providing a death certificate and proof of identity, avoiding the probate process.

POD designations can typically be added to:

  • Checking and savings accounts
  • Certificates of deposit (CDs)
  • Money market accounts
  • Some investment and brokerage accounts
  • Avoids probate, enabling faster access to funds for beneficiaries.
  • Simple and cost-effective to set up.
  • Allows account holders to retain full control of the funds during their lifetime.
POD beneficiaries can be individuals, trusts, or charities. Multiple beneficiaries can also be named, with percentages allocated to each.
Contact your bank or financial institution to complete a POD designation form. You’ll need to provide the names, Social Security numbers, and contact information of the beneficiaries.

Yes, the account owner can change or remove POD beneficiaries at any time by contacting the financial institution and updating the designation.

While POD accounts avoid probate, the funds transferred may still be subject to estate taxes if the total estate value exceeds the federal or state exemption limits. Beneficiaries may also owe income taxes on interest earned after the account holder’s death.
If a POD beneficiary passes away before the account holder, the designation typically becomes void for that beneficiary. The account owner should update the designation to reflect any changes.
POD accounts are generally difficult to contest since they are governed by contract law. However, disputes may arise if claims of undue influence or lack of capacity are made.

Yes, POD designations take precedence over instructions in a will for the specific account. It is crucial to ensure that your POD designations align with your overall estate plan.

Yes, POD designations can be added to joint accounts. Upon the death of one account holder, the surviving owner typically retains full control, and the POD designation applies after the second account holder’s death.
Yes, POD accounts are available nationwide, but specific rules may vary by state. Check with your financial institution to confirm state-specific regulations.
  • POD (Payable on Death): Applies to bank accounts and similar assets.
  • TOD (Transfer on Death): Used for securities, investment accounts, and real estate in some states.

POD accounts are an excellent tool for simplifying asset transfer but should be coordinated with other estate planning documents, such as wills and trusts, to ensure consistency and alignment with your wishes.

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Disclaimer: The information provided on this page is for general informational purposes only and should not be considered legal advice. Please consult with a qualified attorney for advice specific to your situation.