Define: Pay-On-Death Designation

A pay-on-death (POD) designation, also known as a beneficiary designation, is a legal arrangement that allows an individual to designate a beneficiary who will receive certain assets or accounts upon the individual’s death. Commonly used for bank accounts, investment accounts, and retirement accounts, a POD designation enables the account holder to specify who will inherit the funds or assets without the need for probate. When the account holder passes away, the assets are transferred directly to the designated beneficiary, bypassing the probate process and allowing for a quicker and more streamlined transfer of assets. POD designations provide individuals with a simple and efficient way to transfer specific assets to loved ones or beneficiaries upon their death, offering flexibility and control over their estate planning while avoiding the complexities and delays associated with probate. It’s important to regularly review and update POD designations to ensure they align with one’s current wishes and circumstances.

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This glossary post was last updated: 29th March 2024.