Payable on death (POD)
A bank-account instruction that pays the balance to a named person on the owner's death.
What it means
A payable-on-death designation does for a bank account what a transfer-on-death designation does for securities and titles: it names who receives the balance, and it takes effect only on death.
The account is entirely the owner's while they are alive. The named person cannot see it, use it, or stop the owner spending it.
Why it matters
It is usually the fastest money in an estate — often available with a death certificate and identification, and without probate.
It also silently removes that money from whatever the will says, which matters when a will divides everything equally and one account is designated.
When you are likely to meet it
- On bank paperwork, sometimes described as an 'in trust for' account.
- When a bank asks whether the account 'has a beneficiary'.
How this varies by state
Bank practice varies as much as state law here, and institutions set their own evidence requirements.