What is a Payable on Death bank account?

A payable-on-death (POD) bank account is a type of bank account that allows the account owner to designate one or more beneficiaries who will inherit the account balance upon the owner's death. POD accounts are sometimes also referred to as a "transfer-on-death" (TOD) accounts.

To set up a POD account, the account owner must provide the bank with a payable-on-death designation form that names one or more beneficiaries and specifies the ownership interests of each beneficiary. The owner can name any person or entity as a beneficiary, including family members, friends, charities, or trusts. The owner can also change or revoke the POD designation at any time as long as they are competent and capable of doing so.

POD accounts can be a useful tool for estate planning, as they allow the account owner to transfer ownership of the account to the designated beneficiary(ies) upon their death without the need for probate. This can save time and money, and it can also provide greater privacy and control over the transfer of the account. It's important to note, however, that POD accounts are not available for all types of financial accounts.