A bank account with a designated beneficiary who automatically receives the account funds upon the death of the account owner, without the account passing through probate. Also called a POD account or Totten trust. The owner retains full control during lifetime and can change the beneficiary anytime. Upon death, the beneficiary presents a death certificate to claim the funds.
A bank account where you name someone to automatically receive whatever's in the account when you die. During your lifetime, it's your normal bank account—you control it completely. When you die, the money goes directly to the beneficiary without going through your will or probate. They just present your death certificate to the bank and receive the funds within days. Simple way to pass money without probate delay.
⏱ When you'll encounter this term
- Opening bank accounts or certificates of deposit
- Estate planning to avoid probate
- Providing quick access to funds for beneficiaries
- Setting up simple inheritance without a will
- Coordinating non-probate assets with your overall plan
"I set up my savings account as a pay-on-death account with my daughter as beneficiary. When I die, she can get the money immediately by showing my death certificate to the bank—no waiting for probate."
💡 Did you know?
POD account funds go to the named beneficiary regardless of what your will says. If your POD account names your ex-spouse but your will leaves everything to your new spouse, the ex-spouse gets the account. Always review and update POD beneficiary designations after major life changes.