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.

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.

What Is a Totten Trust?

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.

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?