Yes, you can name a beneficiary on most bank accounts, and it bypasses probate
Most banks let you name a payable-on-death (POD) beneficiary or transfer-on-death (TOD) beneficiary on checking and savings accounts. When you die, the money in that account goes directly to the person you named—it does not go through your will or probate court. The beneficiary simply shows the bank a death certificate and proof of identity to claim the funds.
Not every account type supports this. Money market accounts usually do. Certificates of deposit (CDs) usually do. Joint accounts work differently—the surviving owner typically inherits automatically, regardless of what you write down. Some banks call the feature by different names, so you need to ask your bank directly whether your specific account can have a POD or TOD designation.
The process is free and takes minutes. You fill out a form at your bank, name one or more beneficiaries, and you are done. You can change or remove the beneficiary anytime while you are alive, as long as you have the account in your own name or as a surviving owner of a joint account.
Key Takeaways
- A payable-on-death beneficiary receives your account balance directly after you die, without going through probate or your will.
- You can name a beneficiary on most checking, savings, and CD accounts, but joint accounts and some specialty accounts may not allow it.
- The bank form is free and takes a few minutes; you can change your beneficiary at any time while you are alive.
- If you name multiple beneficiaries, specify whether they split the money equally or in different percentages, because the bank will follow your written instructions.
- A POD beneficiary has no access to your account while you are alive, even if you name them—they only inherit after your death.
How the beneficiary designation actually works
When you name a POD beneficiary, the bank holds the money in your name during your lifetime. The beneficiary has no right to touch it, see it, or make decisions about it. You keep full control. You can spend the money, close the account, or change the beneficiary whenever you want.
After you die, the beneficiary contacts the bank with a death certificate and a government-issued ID. The bank verifies the death and the identity, then transfers the full account balance to the beneficiary. This usually takes one to two weeks. The beneficiary does not need to go to court, does not need your will, and does not need permission from anyone else—the bank's records are the legal proof of ownership.
If you name multiple beneficiaries and do not specify how to split the money, most banks divide it equally. If you want unequal splits—for example, 60 percent to one person and 40 percent to another—write that on the form or ask the bank to note it in your account records. Get a copy of the completed form to confirm the bank recorded your wishes correctly.
Which accounts can have a beneficiary and which cannot
Checking accounts, savings accounts, money market accounts, and CDs almost always allow POD designations. Some banks also let you name a beneficiary on individual retirement accounts (IRAs) and health savings accounts (HSAs), though those accounts have their own beneficiary rules that may override a bank designation.
Joint accounts work differently. If the account is held as "joint tenants with rights of survivorship," the surviving owner automatically inherits the full balance when the other owner dies—no beneficiary form needed. If it is held as "tenants in common," each owner's share goes to their own beneficiary or estate. Ask your bank which type of ownership your joint account has, because it changes what happens to the money.
Trust accounts, business accounts, and accounts held in a trust's name cannot have a separate POD beneficiary. The trust itself is the account owner, and the trust document controls who gets the money. If you have set up a trust, talk to the attorney who created it about whether the bank account should be in the trust's name or your individual name.
How to name or change a beneficiary
Contact your bank and ask for the POD or TOD beneficiary form. Some banks call it a "payable-on-death designation" or "transfer-on-death form." You can usually get it in person at a branch, by phone, or online through your account portal. A few banks let you do it entirely online; others require you to sign the form in front of a bank employee or have it notarized.
Fill in the beneficiary's full legal name, date of birth, and address. If you want to name more than one beneficiary, list each one and specify the percentage or dollar amount each should receive. If you leave the percentages blank, the bank will split the money equally. Sign and date the form, and give it to the bank.
Ask the bank for a copy of the completed form and keep it with your important documents. If you want to change the beneficiary later, fill out a new form—the most recent one on file is the one that counts. You do not need the old beneficiary's permission to change it, and you do not need to notify them.
What happens if you name a beneficiary but also have a will
The POD beneficiary designation overrides your will. If your will says the money goes to your child but your POD form says it goes to your spouse, the spouse gets the money. The bank follows the designation on file, not the will. This is true even if the will is newer than the beneficiary form.
This can create problems if you forget you named a beneficiary and later change your mind. For example, if you named an ex-spouse as beneficiary years ago and never updated it, they will inherit the account even if your current will leaves everything to someone else. Review your beneficiary designations every few years, especially after major life changes like marriage, divorce, or the birth of children.
If you want the money to go to your estate instead of a named beneficiary—so it can be divided according to your will—you can name your estate as the POD beneficiary. This defeats the purpose of avoiding probate, but it gives you more control over how the money is distributed. Talk to your bank about whether they allow this.
What to do if your beneficiary dies before you do
If the person you named as beneficiary dies before you, the designation becomes void. The money does not automatically go to their children or spouse. Instead, when you die, the account will go to your estate and be distributed according to your will or your state's intestacy laws if you do not have a will.
To prevent this, name a backup or contingent beneficiary at the time you set up the account. If your primary beneficiary dies, the money goes to the contingent beneficiary. If both die before you, you can name a third person or your estate as the final fallback.
Check your beneficiary designation every few years. If your primary beneficiary has died, update the form immediately so the money goes where you actually want it to go.
State laws and special rules
POD and TOD designations are allowed in all 50 states, but the rules vary slightly. Some states require the form to be notarized; others do not. Some states let you name a beneficiary on more account types than others. A few states have specific language requirements for the form to be valid.
Your bank's form is designed to comply with your state's law, so using the bank's official form protects you. If you move to a different state, ask your bank whether your existing beneficiary designation is still valid or needs to be updated.
If you have accounts at multiple banks, each one has its own beneficiary form. You need to fill out a separate form for each account. A beneficiary designation at Bank A does not carry over to Bank B.
Frequently Asked Questions
Can a beneficiary access my account while I am still alive?
No. A POD beneficiary has no rights to the account during your lifetime. They cannot withdraw money, see the balance, or make any decisions about it. Only you can access the account. After you die, the beneficiary contacts the bank with a death certificate to claim the funds.
What if I name someone who is a minor as my beneficiary?
The bank will transfer the money to the minor's name, but a minor cannot legally control the account. The money will be held in a blocked account or transferred to a court-appointed guardian until the minor reaches the age of majority (usually 18 or 21, depending on your state). You can avoid this by naming an adult as beneficiary and specifying in your will that they hold the money in trust for the minor.
Do I need a lawyer to set up a POD beneficiary?
No. The bank provides the form for free, and you fill it out yourself. A lawyer is not required. However, if you have a complex estate, multiple accounts, or concerns about how the money will be used after you die, talking to an attorney about your overall plan may be helpful.
Can I name my estate as the beneficiary?
Yes, but it defeats the main purpose of a POD designation. If you name your estate as beneficiary, the account will go through probate just like any other asset in your will. The advantage of avoiding probate is lost. Most people name a person instead.
What if I want to leave money to a charity?
You can name a registered charity as a POD beneficiary if the bank allows it. You will need the charity's legal name and tax ID number. Confirm with the charity that they can accept the transfer, and make sure the bank has the correct information on file so the money reaches the right organization.