Payable-on-Death Accounts and Other Simple Ways to Pass on Savings

This is one of the simplest, most underused tools for making sure savings reach the right person quickly and without complication.

What does a payable-on-death designation do, and does the money go through probate?

A payable-on-death (POD) designation names a specific beneficiary to receive the funds in a bank account directly after your death - bypassing the probate process entirely. This is the main benefit of a POD designation: funds transfer directly to the named beneficiary, without going through probate. It’s typically a free, simple form provided by your bank, not something requiring an attorney or complex paperwork.

How do I set up a payable-on-death designation?

This is typically a simple form your bank provides - no attorney is usually required, and there’s often no cost to set it up.

Is this the same as a joint account?

No - a joint account gives another person access and shared ownership immediately, while you’re both still alive. A POD designation only takes effect after your death - the named beneficiary has no access, ownership, or claim to the account while you’re living.

Can I name more than one beneficiary?

Yes, in most cases - most banks allow naming more than one beneficiary, and let you specify how funds should be divided among them if you’d like an even or specific split.

Why does this matter for your broader planning?

Assets with a named beneficiary - including POD accounts, along with retirement accounts and life insurance - generally bypass probate, meaning they can reach your intended recipient faster and with less complexity than assets distributed through a will. This is one of the simplest ways to reduce what your family needs to handle through the probate process later.

If you’re the one trying to find an account after a death, see our guide on how to find everything a person owned.

How do I keep this current?

Beneficiary designations don’t automatically update after a divorce, remarriage, or other life change - review these periodically to make sure they still reflect your actual wishes.

This is general educational information, not financial or legal advice — your bank can walk you through the specific process for your accounts.