Yes, you can name a beneficiary on most bank accounts, and it bypasses probate when you die

Most banks let you name a payable-on-death (POD) beneficiary or transfer-on-death (TOD) beneficiary on checking and savings accounts. When you die, the money in that account goes directly to the person you named, without going through probate court. The beneficiary has no access to the account while you're alive—they can't withdraw money or see the balance. The account is entirely yours until your death.

Some banks call this feature by different names: "in case of death" designation, "death beneficiary," or straightforward "beneficiary." The mechanics are the same. You fill out a form, name one or more people, and the bank keeps that designation on file. It costs nothing.

Not every bank offers this on every account type. Money market accounts and some savings products may not have the option. Joint accounts work differently—the surviving owner usually gets the money automatically, regardless of what a beneficiary form says. Checking accounts almost always allow it.

Key Takeaways

  • A payable-on-death beneficiary receives your account balance directly after you die, without probate court involvement.
  • The beneficiary cannot access or control the account while you are alive, even if you name them.
  • You can change or remove a beneficiary at any time by contacting your bank and filling out a new form.
  • If you name multiple beneficiaries, most banks split the balance equally unless you specify different percentages.
  • A beneficiary designation overrides what your will says about that account, so keep both documents in sync.

How to name a beneficiary at your bank

Contact your bank directly—by phone, in person, or through their website. Ask for the beneficiary designation form, which is usually called a POD form, TOD form, or "beneficiary form." Some banks let you complete it online; others require you to sign it in person or mail it back.

You will need the beneficiary's full legal name and, usually, their Social Security number or date of birth. Some banks also ask for their address. If you want to name multiple beneficiaries, tell the bank how you want the money split—equally, or in specific percentages. If you don't specify, most banks divide it equally.

Keep a copy of the completed form for your records. Ask the bank to confirm in writing that the designation is now active. This takes a few minutes and is free.

What happens when you die

When you pass away, your family or executor should notify the bank. Provide a copy of your death certificate. The bank will verify the beneficiary designation on file and release the account balance to whoever you named, usually within one to two weeks.

The beneficiary does not need to go to probate court for this money. That is the main advantage of a POD or TOD account. If you had left the money in your will instead, it would sit in probate for months while a court decided who got it.

The beneficiary will receive a 1099 form if the account earned interest, and they may owe income tax on that interest. They do not owe estate tax on the transfer itself, though the account balance counts toward your taxable estate if your total assets are large enough to trigger federal estate tax (which applies only to estates over $13.61 million in 2024, though this threshold changes yearly).

Changing or removing a beneficiary

You can change your beneficiary at any time while you are alive. Contact your bank, ask for a new beneficiary form, and submit it. The bank will replace the old designation with the new one. There is no fee and no waiting period.

If you want to remove a beneficiary entirely, fill out a new form that names no one, or ask the bank what their process is for deletion. Some banks require you to explicitly state "no beneficiary" on the form; others let you leave the field blank.

Keep track of which beneficiary is currently on file. If you divorce, remarry, or your circumstances change, update the form. A beneficiary designation does not automatically change when your will changes, so you have to do it manually.

Beneficiaries versus joint account owners

A beneficiary and a joint owner are not the same thing. A joint account owner can withdraw money and make decisions about the account right now. When a joint owner dies, the surviving owner usually gets the account automatically, by operation of law—no form needed.

A beneficiary cannot touch the account while you are alive. They only receive the money after you die. If you want someone to help you manage money now, make them a joint owner. If you want them to inherit money later, name them as a beneficiary.

If an account has both a joint owner and a beneficiary, the joint owner usually gets priority. The surviving joint owner receives the account, and the beneficiary gets nothing. Check with your bank about how they handle this situation, because rules vary.

What to do if your bank does not offer this feature

Some smaller banks or credit unions do not offer POD or TOD designations. If yours does not, you have other options. You can leave the money to someone in your will, though it will go through probate. You can make that person a joint owner on the account, though they will have access to the money while you are alive. You can also move the account to a bank that does offer beneficiary designations.

Ask your bank directly whether they support POD or TOD accounts. If they say no, ask whether they have any similar feature under a different name. Some institutions call it something else but offer the same protection.

Frequently Asked Questions

Can a beneficiary access my account before I die?

No. A beneficiary has no rights to the account while you are alive. They cannot withdraw money, see the balance, or make any decisions about it. Only you can access the account, and anyone you name as a joint owner. The beneficiary's rights begin only after you die and the bank is notified.

What if I name someone as a beneficiary and then change my mind?

Contact your bank and submit a new beneficiary form with a different person's name, or request that the beneficiary designation be removed. The bank will update their records. There is no penalty for changing it, and you can do it as many times as you want.

If I have a will that says something different about my bank account, which one wins?

The beneficiary designation on file at the bank wins. If your will says your daughter gets the account but your beneficiary form names your son, your son gets the money. Keep your will and your beneficiary designations in sync to avoid confusion and family conflict.

Can I name my minor child as a beneficiary?

Yes, but the money cannot be released to a minor directly. The bank will hold it or release it to a court-appointed guardian. Consider naming an adult as beneficiary and specifying in your will how that person should use the money for your child, or set up a trust instead.

Do I need a lawyer to set up a beneficiary designation?

No. The bank's form is straightforward and free. You fill it out, sign it, and submit it. A lawyer is not required. If your situation is complex—multiple accounts, a blended family, large amounts of money—a lawyer can help you think through the best structure, but the basic beneficiary form itself is straightforward.