What a POD account is and whether you can write checks on it
A payable-on-death (POD) account is a bank or credit union account that passes money directly to a named person when you die, without going through probate. You can write checks on a POD account during your lifetime exactly as you would on any other checking or savings account you own. The POD designation only matters after death—it does not restrict what you do with the money while you are alive.
The person you name as the POD beneficiary has no access to the account while you are living. They cannot write checks, make withdrawals, or see the balance. Once you die, the bank transfers the remaining balance to that person outside of your will or estate.
POD accounts are sometimes called transfer-on-death (TOD) accounts, though TOD more often refers to investment accounts like brokerage accounts. The mechanics are the same: you control the account completely during life, and it passes to your named beneficiary at death.
Key Takeaways
- You can write checks and conduct all normal banking on a POD account while you are alive—the POD designation does not restrict your access or control.
- The named beneficiary cannot access, withdraw from, or write checks on the account until after you die and the bank processes the transfer.
- Setting up a POD account takes minutes at most banks and credit unions and costs nothing.
- When you die, the bank transfers the account balance directly to the beneficiary, bypassing probate and your will.
- You can change or remove the POD beneficiary at any time during your lifetime by contacting your bank.
How to set up a POD account at your bank
Most banks and credit unions allow you to add a POD designation to a new or existing checking or savings account. You can usually do this when you open the account or by visiting a branch and asking to add a POD beneficiary. Some banks let you do it online through your account settings.
You will need to provide the beneficiary's full legal name and, at most institutions, their Social Security number or tax ID. Some banks ask for a phone number or address as well. The bank uses this information to locate and contact the beneficiary after you die.
There is no cost to add a POD designation, and it does not change your account type, interest rate, or monthly fees. Your account works exactly as it did before.
What happens to a POD account after you die
When you die, your family or executor should notify the bank. The bank will freeze the account and verify your death using a death certificate. Once confirmed, the bank transfers the full remaining balance to the named POD beneficiary.
This transfer happens outside probate, meaning the beneficiary does not have to wait for a court to approve the transfer or for your will to be read. In most cases, the transfer takes one to four weeks, though it can take longer if the bank needs additional documentation or if there are complications.
If you name multiple POD beneficiaries, the account balance is usually split equally among them unless you specify different percentages when you set up the account. Check with your bank about how they handle multiple beneficiaries.
POD accounts and your will or estate plan
A POD account is not part of your probate estate. Money in the account does not go to whoever you name in your will—it goes to the POD beneficiary you named at the bank, period. This can be useful if you want one person to receive a specific account without it being divided among your heirs or held up in probate.
However, this also means a POD account can override your will. If your will says your estate should be split equally among three children, but your POD account names only one child as beneficiary, that child gets the account balance outside your will. The other two children have no claim to it.
For this reason, it is important to keep your POD designations in sync with your overall estate plan. If your life circumstances change—you divorce, remarry, have children, or your relationship with the beneficiary changes—review and update your POD beneficiaries.
Changing or removing a POD beneficiary
You can change the POD beneficiary on your account at any time while you are alive. Visit your bank branch, call the bank, or use online banking to update the designation. The bank will ask you to confirm the new beneficiary's name and identifying information.
If you want to remove the POD designation entirely, you can do that too. The account becomes a regular account with no automatic transfer at death. Any money left in it at your death becomes part of your probate estate and is distributed according to your will or state law.
Keep in mind that changing a POD beneficiary does not require the consent of the current beneficiary. You have full control over the designation during your lifetime.
POD accounts versus joint accounts and trusts
A POD account is different from a joint account, where another person has access to the account right now and can write checks or withdraw money. On a joint account, the other person's name is on the account. On a POD account, only your name is on it.
A POD account is also simpler than a living trust, which requires you to transfer ownership of assets into the trust and name a trustee to manage them. A POD account requires no paperwork beyond a form at the bank. However, a trust gives you more control over how money is distributed after death—for example, you can direct that the beneficiary receive money in installments rather than a lump sum.
Some people use POD accounts for smaller accounts and trusts for larger assets or more complex situations. Talk to an estate planning attorney if you are unsure which tool fits your situation.
Limits and things to know about POD accounts
POD accounts are subject to the same deposit insurance limits as regular accounts. At most banks, the Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per account owner per bank. If you have multiple POD accounts at the same bank, they are usually added together for insurance purposes.
Some states have restrictions on POD accounts or call them by different names. A few states do not recognize POD designations on savings accounts, only on checking accounts. Check with your bank or state banking authority if you are unsure whether POD accounts are available where you live.
If you owe money to creditors or the government, a POD account does not protect the money from collection. Creditors can still pursue the account balance, and in some cases, the government can seize it for unpaid taxes or student loans.
Frequently Asked Questions
Can the POD beneficiary see my account balance while I'm alive?
No. The beneficiary has no access to the account during your lifetime. They cannot see the balance, make withdrawals, or write checks. Only you can access the account while you are living.
What if I die without naming a POD beneficiary?
The account becomes part of your probate estate and is distributed according to your will or, if you have no will, according to your state's intestacy laws. This means the money may be divided among multiple heirs and the process could take several months.
Can I name a minor as a POD beneficiary?
Yes, but the bank will not release the money to a minor directly. Instead, the funds are usually held in trust or released to a court-appointed guardian until the beneficiary reaches the age of majority (usually 18 or 21, depending on your state).
Does a POD account avoid taxes?
No. The money in a POD account is still part of your taxable estate for federal estate tax purposes if your total estate exceeds the federal exemption limit (which is very high and changes yearly). The beneficiary may owe income tax on any interest earned in the account after your death, depending on how much interest accrued.
What if I name someone as POD beneficiary and then we have a falling out?
You can change the beneficiary at any time. Contact your bank and request a new POD designation form. You do not need permission from the current beneficiary, and they do not need to know you changed it.