Payable-on-Death Accounts and Other Simple Ways to Pass on Savings
Reviewed by Everendium Editorial Team · Last reviewed August 18, 2026
Quick answer
A payable-on-death (POD) designation on a bank account lets you name a beneficiary who receives the funds directly after your death, bypassing probate entirely — a simple, often free way to pass on savings without needing a full trust.
This is one of the simplest, most underused tools for making sure savings reach the right person quickly and without complication.
What a payable-on-death designation does
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 typically a free, simple form provided by your bank, not something requiring an attorney or complex paperwork.
How it’s different from a joint account
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.
Naming multiple beneficiaries
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 this matters 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.
Keeping 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.
Frequently asked questions
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.
Does the money go through probate?+
No — this is the main benefit of a POD designation. Funds transfer directly to the named beneficiary after death, without going through the probate process.
Can I name more than one beneficiary?+
Yes, in most cases — you can typically name multiple beneficiaries and specify how funds should be divided among them.
Is this the same as a joint account?+
No — a joint account gives the other person access and ownership while you're both alive. A POD designation only takes effect after your death, and the named beneficiary has no access or claim to the account beforehand.
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Related glossary terms
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