Payable-on-death (POD) bank accounts can be marvelous estate planning tools. For a cost of exactly nothing, you can add POD beneficiaries to your bank accounts and CDs. A POD payee inherits whatever money is in the account at your death and doesn't have to go through probate to claim it--all that's required is showing up at the bank with a death certificate and identification.
Payable-on-Death (POD) Accounts: The Basics
Payable-on-death bank accounts offer an easy way to keep money—even large sums of it—out of 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.
Adding a POD Designation to a Joint Account
Here's an easy way to avoid probate for a joint bank account.
These "bank account trusts" are really just payable-on-death bank accounts.
If a Beneficiary Dies Before You Do
If a POD beneficiary you've named dies, be sure to name a new beneficiary.
How to Change a POD Account Beneficiary
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?