Learn personal and professional finance terms to keep you in the know
A payable on death, or POD, designation is an instruction you add to a bank account that names a beneficiary to receive the funds automatically when you pass away. Because the account transfers directly to the named beneficiary, it skips probate entirely, which means your loved ones can access the money faster and with less legal hassle than assets that go through a will. Setting one up is usually as simple as filling out a form at your bank and providing the beneficiary's information.
You can update or remove a POD designation at any time while you're alive, and it takes priority over instructions in your will for that specific account. Many people use POD designations alongside a broader estate plan to make sure cash accounts pass smoothly to the people they care about.
