Yes, you can name a bank account beneficiary on almost any checking, savings, money market, or CD account. The standard tool is a Payable on Death (POD) designation, sometimes called an “In Trust For” account or a Totten trust. You fill out a short form at your bank naming who should receive the balance when you die, and the money passes directly to that person without going through probate. While you’re alive, nothing changes: you keep full control, the person you named has no access to the account, and you can spend the money, close the account, or swap in a different name whenever you want.
How a Payable on Death Designation Works
A POD designation is a contract between you and the bank. It sits alongside the account itself and instructs the bank where to send the funds after your death. Because the transfer is governed by that contract rather than by your will, it happens quickly and privately, and no probate court has authority over it.
The person you name has no legal interest in the money during your lifetime. They cannot check the balance, make withdrawals, or receive statements. They may not even know you named them. You can change your mind at any time without their knowledge or consent.
POD designations are available on most standard deposit products, including checking, savings, money market accounts, and CDs.
Information You’ll Need to Add a Beneficiary
Banks need enough detail to identify each beneficiary confidently years later. Expect to provide:
- Full legal name as it appears on government-issued ID
- Date of birth
- Social Security number (some banks require it, others don’t)
- Current mailing address
Most banks let you complete the designation online, in the mobile app, or in person at a branch. Accuracy matters. A misspelled name or wrong Social Security number can slow the transfer or set off a dispute after your death.
Primary, Contingent, and Splits
You can name a primary beneficiary and a contingent beneficiary who only inherits if the primary dies before you. You can also divide the balance by percentage among several people—for example, 50 percent to a spouse and 25 percent each to two children.
Per Stirpes and Per Capita
Some banks let you choose how a deceased beneficiary’s share is handled. Under a per stirpes designation, that share passes down to the beneficiary’s own children. Under per capita, it’s redistributed among the surviving beneficiaries. Per stirpes is often the better fit for parents who want a grandchild to inherit a deceased child’s portion, but not every institution offers the option. Ask when you fill out the form.
Naming a Minor or a Trust
You can list a minor child, but banks generally will not release funds directly to anyone under 18. When a minor is the beneficiary, the bank typically requires a court-appointed guardian or a custodian under the Uniform Transfers to Minors Act (UTMA) to receive the money on the child’s behalf. To avoid delays, some account holders name an adult UTMA custodian on the POD form itself.
You can also name a revocable living trust, which lets you control timing and conditions—for instance, holding funds for a child until age 25. If you name a trust, the bank will usually ask for the trust’s tax identification number instead of a Social Security number.
How the Designation Interacts With Your Will and Joint Accounts
A POD designation overrides your will. If your will leaves the account to one person and the POD form names someone else, the bank pays the person on the form. The probate court has no authority over the account because it’s governed by the bank contract, not the will. Updating your will and forgetting the beneficiary form is one of the most common estate planning mistakes.
Joint accounts with right of survivorship add a wrinkle. When one co-owner dies, the other automatically becomes sole owner of the entire account, and any POD beneficiary receives nothing at that point. The POD only activates after the last surviving owner dies, and the surviving owner is free to change or remove the beneficiary in the meantime.1Wells Fargo. Estate Care Center
When to Update Your Beneficiary
Changes require a new designation form. Some banks accept electronic signatures online; others want a paper form in person or by mail. A few still require notarization. Confirmation usually arrives within a few business days, and the update should appear on your next statement.
Review your designations after any of these events:
- Marriage or remarriage
- Divorce. Most states automatically revoke a POD naming a former spouse once the divorce is final, but not all do. Don’t rely on it—update the form yourself.
- Death of a beneficiary. If your primary dies and you named no contingent, the account may end up in probate.
- Birth or adoption of a child. A new child inherits nothing unless you add them.
How Your Beneficiary Actually Collects
Banks do not chase down beneficiaries. The person you named has to contact the bank and start the claim. For a POD account, they generally need only two things:
- A certified death certificate from the vital records office in the state where you died. Copies typically run about $5 to $35 each.
- Government-issued photo ID.
No probate documents, court orders, or executor’s letters are required.1Wells Fargo. Estate Care Center Once the bank verifies the paperwork, it closes the account and either issues a check or transfers the balance. Straightforward claims often finish within a couple of weeks. Because banks don’t advertise these accounts to survivors, make sure the person you named knows the account exists and where it’s held.
The FDIC Insurance Bonus
Naming beneficiaries can increase your federal deposit insurance coverage. The FDIC insures up to $250,000 per beneficiary on POD and trust accounts, capped at $1,250,000 for five or more beneficiaries at the same bank.2FDIC. Trust Accounts
- 1 beneficiary: $250,000
- 2 beneficiaries: $500,000
- 3 beneficiaries: $750,000
- 4 beneficiaries: $1,000,000
- 5 or more beneficiaries: $1,250,000
Without a POD, a single-owner account is insured for only $250,000 total at that institution. The FDIC combines all your trust-type deposits at the same bank—informal POD accounts, revocable trusts, and irrevocable trusts—when calculating the limit.2FDIC. Trust Accounts
Taxes and Creditor Claims
Beneficiaries generally owe no federal income tax on the balance itself, since that money was already taxed as income when you earned it. Interest that accrues after your death is taxable to the beneficiary and belongs on their return.
POD accounts skip probate but not estate tax. The full balance is included in the deceased owner’s gross estate for federal purposes.3Internal Revenue Service. Survivors, Executors, and Administrators (Publication 559) For 2026, estates below $15,000,000 owe no federal estate tax, so this affects only very large estates.4Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 State estate or inheritance taxes may kick in at much lower thresholds.
POD funds are not fully shielded from the deceased owner’s creditors. In many states, if the probate estate can’t cover the debts, creditors can reach POD account funds. The rules vary widely. A beneficiary inheriting from someone with substantial debts should consider talking to an attorney before spending the money.