What a POD is and why you might want one

A POD stands for "Payable on Death." It is a way to name someone to receive the money in your bank account after you die, without that money going through your will or probate court. When you set up a POD, you are telling the bank: "If I pass away, give this account to this person."

The person you name is called the beneficiary. They do not own the account while you are alive — you keep full control. But when you die, the money passes directly to them, which is faster and simpler than waiting for a court to distribute your estate.

PODs are useful if you want to make sure a specific person — a child, grandchild, spouse, or trusted friend — receives money quickly after your death, without legal delays or fees.

Key Takeaways

  • A POD lets you name someone to receive your bank account after you die, and they have no access to the money while you are alive.
  • You set up a POD directly with your bank, usually by filling out a form or updating your account online — it costs nothing.
  • The person you name must provide their full legal name and Social Security number so the bank can identify them.
  • If you die without naming a POD beneficiary, the money in that account becomes part of your estate and may take months to distribute through probate court.
  • You can change or remove a POD beneficiary at any time while you are alive, just as easily as you set it up.

How to start the process with your bank

Contact your bank directly — by phone, in person at a branch, or through your online banking portal. Ask to speak with someone about setting up a POD, or look for a link in your account settings labeled "Beneficiary" or "Payable on Death."

Different banks have different processes. Some let you do it entirely online. Others require you to visit a branch or call a specific department. When you call, have your account number ready and ask whether you can complete the form over the phone or if you need to come in.

The bank will give you a form — sometimes called a "Beneficiary Designation Form" or "POD Form" — to fill out. Keep a copy for your records once it is signed.

Information you will need to provide

You will need to give the bank the full legal name of the person you want to name as your beneficiary. This must match their government-issued ID exactly — if their legal name is "Robert" but they go by "Bob," use "Robert."

You will also need their Social Security number. The bank uses this to identify them and to report the transfer to the IRS if needed. Ask your beneficiary for this information before you sit down with the bank form.

Some banks ask for additional details like your beneficiary's date of birth or address. Have this information ready so you can complete the form without delays.

What happens after you submit the form

Once you sign the form and submit it to the bank, the POD is active. The bank will confirm this in writing — usually by mail or email. Keep this confirmation with your important documents.

You do not need to tell your beneficiary that you have named them, though many people do. Your beneficiary will not see the account or receive statements while you are alive. They will only learn about it when you die and the bank contacts them.

The bank will keep a record of your POD designation in your account file. When you pass away, your family or executor can contact the bank with a death certificate, and the bank will transfer the money to your beneficiary.

Changing or removing a POD beneficiary

You can change your beneficiary at any time while you are alive. Contact your bank and ask for a new beneficiary form. Fill it out with the new person's name and information, sign it, and submit it. The bank will update your account.

If you want to remove a POD entirely — so the money goes into your estate instead — ask the bank for a form to cancel the designation. Sign and return it. After that, the account will have no POD beneficiary.

Keep in mind that if you change your mind later, you will need to set up a new POD from scratch. There is no "undo" button, so make sure you are certain before you submit the change.

POD accounts versus joint accounts and trusts

A POD is different from a joint account, where another person has access to the money right now. With a POD, only you can use the account while you are alive. A joint account owner can withdraw money anytime, which is why PODs are safer if you want to protect the money until you die.

A POD is also simpler than setting up a trust, which requires a lawyer and costs money. A trust gives you more control over how money is distributed and can cover multiple accounts and property. But if you just want one bank account to go to one person, a POD is the easiest and cheapest way.

Some people use both: they might have a POD on a checking account and a trust for their house and investments. Talk to your bank about what makes sense for your situation.

Frequently Asked Questions

Can I name more than one person as a beneficiary?

Yes. Most banks let you name multiple beneficiaries and specify what percentage each person receives. For example, you could say 50% goes to your daughter and 50% to your son. Ask your bank what options they offer on their form.

What if my beneficiary dies before I do?

The money goes into your estate instead, and your will or state law determines who receives it. You should update your POD if your beneficiary passes away, just as you would update your will. Contact your bank and name a new beneficiary or remove the POD.

Does a POD affect my taxes?

No. A POD does not create a tax event while you are alive. When you die, the money passes to your beneficiary, and they may owe taxes on any interest the account earned, but that is a separate matter. Your bank will send them a tax form if needed.

Can creditors take money from a POD account after I die?

In most states, a POD account is protected from your creditors after you die — the money goes straight to your beneficiary. However, laws vary by state. Ask your bank or a lawyer in your state if you are concerned about this.

Is there a fee to set up a POD?

No. Banks do not charge to set up, change, or remove a POD. It is a free service included with your account.