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How Do I Set up a POD Account?

Malcolm Tatum
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum

A payable on death or POD account is a type of arrangement that makes it possible for beneficiaries to have immediate access to funds in bank accounts once a death certificate is issued. One of the chief advantages of this arrangement is that loved ones can make use of those funds to cover funeral or other expenses without having to wait for the estate of the deceased to go through probate. The process for setting up a POD account structure is relatively straightforward, although this option is not available everywhere.

In order to establish a POD account structure, the first step is to determine if your bank offers POD beneficiary service. This type of bank service makes it possible to designate up to three beneficiaries who will be allowed access to the funds in your checking, savings, and other accounts that are placed with that particular bank. With this approach, all that is required is to determine the beneficiaries you wish to include in the arrangement and provide the bank with the names and contact information of those parties. In many jurisdictions, copies of other identifying documents such as driver’s licenses or government issued identification cards must be submitted with the paperwork. It is not unusual for the bank to require copies of signatures of the beneficiaries that can be used as a means of identification.

Savings accounts can be set up as payable on death, giving a beneficiary immediate access to the money in the event of the account holder's death.
Savings accounts can be set up as payable on death, giving a beneficiary immediate access to the money in the event of the account holder's death.

Banks will often allow established accounts to be converted to POD accounts. This means that if you want to convert your current checking account into a payable on death account, this can be accomplished with relative ease. An alternative approach would be to open a new account and deposit funds into that new POD account. Doing so effectively establishes a savings account or even a certificate of deposit that can earn interest over the years, but is separated from the constant series of deposits and withdrawals associated with your checking account. You can add to the POD account from time to time, gradually creating a nest egg that your beneficiaries can access immediately after your death is recorded.

One advantage of a POD account is that loved ones can make use of those funds to cover funeral expenses.
One advantage of a POD account is that loved ones can make use of those funds to cover funeral expenses.

Keep in mind that while the main purpose of the POD account is to provide selected heirs with immediate access to a portion of your estate, the funds in the account are not locked. This means that should you need the money during your lifetime for any reason, it is possible to make a withdrawal. While most banks will have some type of minimum balance requirement with a POD account, you can withdraw up to that amount to handle some sort of emergency and the account will remain intact and capable of receiving deposits once the emergency has been resolved.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including WiseGEEK, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

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Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including WiseGEEK, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Learn more...

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    • Savings accounts can be set up as payable on death, giving a beneficiary immediate access to the money in the event of the account holder's death.
      By: vicky
      Savings accounts can be set up as payable on death, giving a beneficiary immediate access to the money in the event of the account holder's death.
    • One advantage of a POD account is that loved ones can make use of those funds to cover funeral expenses.
      By: bramgino
      One advantage of a POD account is that loved ones can make use of those funds to cover funeral expenses.