Also known as: pay on death · pay-on-death · POD · pay-on-death designation
Written by attorneys · grounded in primary & secondary sources — see below
A designation on an account that directs payment of the sums on deposit to one or more named beneficiaries upon the death of the last surviving party. The designation requires an account payable on request to one or more parties during their lifetimes with payment to the beneficiaries only after the death of all parties. A beneficiary under the designation holds no interest in the account during the lifetime of any party.
Pamela Phillips opens a checking account at First Bank titled solely in her name and signs a payable-on-death card naming her daughter Phoebe as beneficiary. Pamela retains full control and makes all deposits and withdrawals during her life. Upon Pamela's death the bank pays the balance directly to Phoebe without probate administration.
Dora Shaffer establishes an account at Salem Bank titled solely in her name and payable on death to Michael Newberg. The account grows from deposits Shaffer alone controls and Newberg never accesses during her lifetime. After Shaffer's death the balance transfers to Newberg under the payable-on-death designation rather than through her estate.
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No. The beneficiary holds no interest in the account during the lifetime of any party and cannot compel payment or prevent withdrawals by the owner.
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Yes. The statute permits a payable-on-death designation on an account titled in the name of one or more parties as trustee for one or more beneficiaries when the account terms establish the trust relationship and the only trust property consists of the sums on deposit.
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The amount to which the decedent was beneficially entitled passes as part of the decedent's estate rather than directly to any named person.
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Yes. The account contract controls and a will cannot revoke or alter the payable-on-death designation even if the owner later expresses a contrary intent in a will.
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…retirement account; and property acquired by right of survivorship, by a trust distribution, by bequest or inheritance or by a payable on death or a transfer on death arrangement under ch. 705. 3. With funds acquired in a manner provided in subd. 1. or 2. Wis. Stat. § 767.61(2)(a). If excluding this property "will create a…