Payable On Death - POD

AAA

DEFINITION of 'Payable On Death - POD'

An arrangement between a bank or credit union and a client that designates beneficiaries to receive all the client's assets. The immediate transfer of assets is triggered by the death of the client.

Also referred to as a "totten trust."

INVESTOPEDIA EXPLAINS 'Payable On Death - POD'

POD accounts are created by filling out the proper forms at your bank or credit union. It is a cost-free service that allows for the transfer of all checking and savings accounts, security deposits, savings bonds and other deposit certificates. A POD account is very similar to a transfer-on-death arrangement, but deals with a person's bank assets instead of their stocks, bonds, mutual funds or other assets. Both POD and TOD agreements offer quick means of asset dispersement, as both avoid the probate process, which can take several months.

RELATED TERMS
  1. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  2. Will

    A legally enforceable declaration of how a person wishes his ...
  3. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  4. Triggering Event

    1. A tangible or intangible barrier or occurrence that, once ...
  5. Probate

    The legal process in which a will is reviewed to determine whether ...
  6. Transfer On Death - TOD

    A way of designating beneficiaries to receive your assets at ...
Related Articles
  1. How To Choose The Right Executor For ...
    Retirement

    How To Choose The Right Executor For ...

  2. Why You Should Draft A Will
    Retirement

    Why You Should Draft A Will

  3. Getting Started On Your Estate Plan
    Options & Futures

    Getting Started On Your Estate Plan

  4. Skipping-Out on Probate Costs
    Retirement

    Skipping-Out on Probate Costs

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center