Payable on Death

Payable on Death (often shortened to P.O.D. or POD) is a financial term used to designate the person or entity who is to receive the proceeds upon the death of the account holder. It is a means to avoid the account being tied up in probate.

For example, an account styled "John Smith POD Ann Brown", upon Smith's death, Brown could claim the proceeds upon showing proof of death.

However, if Brown predeceases Smith, and Smith does not change the styling (to nominate another recipient), then upon Smith's death the account would become part of the estate.