Payable-on-death

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Payable-on-Death

A bank account into which a person may deposit funds that will automatically transfer to a named beneficiary upon the person's death. This can be beneficial because the payable-on-death account transfers outside the probate process and the beneficiary may begin using the money immediately. See also: Transferable-on-death.

Payable-on-death.

A bank account titled payable-on-death (POD) lets you name one or more beneficiaries to whom the assets are paid when you die.

POD accounts can be useful estate planning tools in the states where they are available, since the assets in the account can pass to your beneficiaries directly, outside the probate process.

A similar type of registration is available in some states for securities and brokerage accounts, known as transferable-on-death, or TOD, accounts.