Payable-on-Death (POD) Accounts: The Basics

Payable-on-death bank accounts offer an easy ways to keep money—even large sums of it—out of probate. All you need to do is properly notify your bank of whom you want to inherit the money in the account or certificate of deposit. The bank and the beneficiary you name will do the rest, bypassing probate

Creating a POD Account: The Paperwork

Banks, savings and loans, and credit unions all offer payable-on-death accounts. They don't charge any extra fees for keeping your money this way. You can add a payable-on-death designation to any kind of new or existing account: checking, savings, or certificate of deposit. Setting up a payable-on-death

Adding a POD Designation to a Joint Account

POD accounts, which let you name someone to inherit the funds in a bank account at your death--without probate--can be very useful for couples who have joint bank accounts. Accounts With a Right of Survivorship Most joint bank accounts come with what's called the "right of survivorship," meaning that

What Is a Totten Trust?

If you’re doing some estate planning and speak with someone at a bank about how to avoid probate for an account you have there, you may hear the term “Totten trust.”

If a Beneficiary Dies Before You Do

Most of us choose people younger than ourselves to inherit our money and property, fully expecting them to outlive us. But sometimes this natural course of events is disrupted.

If You Change Your Mind

Families change; relationships change. At some point you may decide that you don't want to leave money to a POD payee you've named, or a beneficiary may die before you do.

How do I set up a payable-on-death account?

How do I set up payable-on-death accounts for my bank accounts? If I establish pay-on-death for my accounts and I die, can the person I have designated on the account get access to my money right away, or is the money frozen?

If I name beneficiaries for my bank accounts, should I include them in my will?

If I fill out a beneficiary form for my stock, IRA, or bank account (to avoid probate), should I name the beneficiaries in my will, too? Or will that only muddy the waters? Also, does naming beneficiaries for these accounts help with the overall estate taxes if they are not listed in the will?