(POD) Payable on Death

Payable on Death (POD) is a type of banking arrangement where a bank account is designated to transfer to a named beneficiary upon the death of the account holder. This type of account is also referred to as a Totten trust or an in-trust-for account.

With a POD account, the account holder retains control of the funds while they are alive and can make deposits and withdrawals as needed. Upon the account holder's death, the named beneficiary becomes the owner of the funds in the account without going through probate court.

It's important to note that POD accounts are not the same as joint accounts and the named beneficiary does not have any rights to the account while the account holder is alive. Additionally, if the account holder changes their mind, they can change the named beneficiary at any time.

POD accounts can be a useful tool for estate planning, as they provide a simple and straightforward way to transfer funds to a designated beneficiary without the time and expense of going through probate court.