Payable on death (POD) / Transfer on death (TOD)
A simple way to pass a bank account, brokerage account, or vehicle title to a named person at death without going through probate. Set with the institution on a form.
POD designations work on bank accounts; TOD on brokerage accounts; TOD on vehicle titles in about half of US states. The named beneficiary has no rights to the account during the owner's lifetime — they cannot withdraw or even see balances. At death, with a death certificate, the beneficiary takes ownership without court involvement.
POD/TOD is the cheapest and simplest probate-avoidance tool. It does not replace a will (it only covers the specific accounts named) but it can move a substantial portion of an estate outside the probate process.
- Beneficiary designation— A named recipient for a specific account — life insurance, 401(k), IRA, payable-on-death bank accounts. Overrides the will. Passes outside probate.
- Probate— The court-supervised process of validating a will (if there is one), paying debts, and transferring the deceased's property to heirs. Required in most cases, though some assets bypass it.
This definition is general consumer information, not legal, medical, or financial advice. Industry practices and regulations change occasionally; verify before relying on anything here for a specific decision.
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