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

A beneficiary on a savings account is a person you name to receive the money in that account after you die. When you name one, the account passes directly to that person outside of your will or estate — the bank transfers it based on the form you signed, not based on what your will says. This is called a payable-on-death (POD) account, and most banks offer it at no cost.

The key difference from leaving money in your will: your beneficiary gets the account when ready after you die, without waiting for probate court to process your estate. Your will can take months or years to move through probate. A POD account moves in days or weeks, depending on how quickly the beneficiary notifies the bank and provides a death certificate.

You keep full control of the account while you are alive. The beneficiary has no access to the money, cannot see the balance, and cannot make withdrawals. You can change or remove the beneficiary at any time, and you can spend all the money if you need to — the account is yours until you die.

Key Takeaways

  • Most banks let you name a payable-on-death beneficiary on savings accounts at no extra cost, and the account passes directly to that person when you die.
  • You keep complete control of the account while alive — the beneficiary cannot access it, and you can change the beneficiary or spend the money whenever you want.
  • The bank needs a signed POD form with the beneficiary's full legal name and usually their Social Security number or tax ID.
  • If you name multiple beneficiaries without specifying how to split the money, most banks divide it equally among them.
  • A POD account avoids probate, but the money still counts toward your taxable estate if your total assets are large enough to trigger estate tax.

How to set up a payable-on-death beneficiary

Contact your bank and ask for the POD form — some banks call it a "Totten trust" form or "transfer on death" form, but the function is the same. You fill in the beneficiary's full legal name (the name on their birth certificate or ID), their relationship to you, and usually their Social Security number or tax ID. Some banks also ask for their address and date of birth.

Sign the form in front of a bank employee or notary, depending on what your bank requires. Many banks do not require a notary, but some do — call ahead to ask. Once the form is signed and filed with the bank, the beneficiary designation is active. You do not need to tell the beneficiary, and you do not need to update your will.

Keep a copy of the signed form for your records. When you die, your beneficiary will need to bring a certified death certificate to the bank, along with a photo ID, to claim the account. The bank will verify the death certificate and transfer the money.

What happens if you name multiple beneficiaries

You can name more than one beneficiary on a savings account. If you do not specify how the money should be split, most banks divide it equally. If you want an unequal split — for example, 60 percent to one person and 40 percent to another — you must say so on the form. Write it clearly: "60% to [Name], 40% to [Name]." If the form does not have space, ask the bank for a written amendment or a new form that includes the percentages.

If one of your beneficiaries dies before you do, what happens depends on your bank's rules. Some banks remove that person and divide the account among the remaining beneficiaries. Others require you to update the form. Call your bank and ask what their policy is, then decide whether you want to name a backup beneficiary or change the arrangement.

The difference between POD and joint ownership

A payable-on-death account is not the same as a joint account. With a joint account, the other person has access to the money right now — they can withdraw, deposit, and see the balance. With a POD account, the beneficiary cannot touch the money until you die.

Joint ownership also has tax and legal risks. If you add someone as a joint owner to avoid probate, they become a legal owner of the account when ready. That means creditors can go after the account if that person is sued or owes money. It also means the account is considered their asset for purposes of means-tested programs like Medicaid or SSI. A POD account avoids these problems because the beneficiary has no legal claim until you die.

POD accounts and estate taxes

Money in a POD account counts toward your taxable estate for federal estate tax purposes. If your total assets — including the POD account, your home, retirement accounts, life insurance, and everything else — exceed the federal estate tax threshold, the POD account will be taxed along with the rest of your estate. The threshold changes yearly; in 2024 it is over $13 million for an individual, but this amount is set to drop in 2026.

For most people, this is not a concern because their total assets are well below the threshold. But if you have a large estate, talk to an estate attorney or tax professional about whether a POD account is the right tool, or whether a trust or other structure makes more sense.

What to do if the beneficiary is a minor

You can name a minor as a beneficiary, but the bank will not release the money to them directly when you die. Instead, the money will be held or transferred to a court-appointed guardian or conservator. This can delay access to the funds and create legal complications.

If you want to leave money to a minor, consider naming an adult as the beneficiary with instructions to use the money for the child's benefit, or set up a trust that names the minor as the beneficiary and an adult as the trustee. A trust gives you more control over how and when the money is used. An estate attorney can help you set this up.

Changing or removing a beneficiary

You can change your beneficiary at any time while you are alive. Contact your bank, fill out a new POD form with the new beneficiary's information, and sign it. The new form replaces the old one. Some banks let you do this online or by phone, but most require you to sign a new form in person or have it notarized.

If you want to remove a beneficiary without naming a new one, ask your bank how to do this. Some banks will let you straightforward cross out the beneficiary on the form and initial it. Others require a formal amendment. Once the beneficiary is removed, the account becomes part of your estate and will be distributed according to your will or your state's intestacy laws if you do not have a will.

Frequently Asked Questions

Can I name my estate as the beneficiary?

Yes, but it defeats the purpose of a POD account. If you name your estate as the beneficiary, the account goes through probate just like everything else in your will. Name a person instead if you want to avoid probate.

What if I die and the beneficiary never claims the account?

The money stays in the account. If the beneficiary never comes forward, the bank may eventually turn it over to your state's unclaimed property program. The beneficiary can still claim it from the state, but it takes longer and requires more paperwork.

Does naming a beneficiary affect my will?

No. A POD beneficiary designation is separate from your will. The beneficiary gets the account regardless of what your will says. If your will leaves the same account to someone else, the POD beneficiary wins — the will has no power over accounts with active beneficiary designations.

Can I name a charity as a beneficiary?

Yes. You can name any organization with a tax ID as a beneficiary. Make sure you have the exact legal name and tax ID number from the charity's website or a recent donation receipt.

What if I owe money when I die — can creditors take the POD account?

It depends on your state and the type of debt. In some states, creditors can pursue a POD account to pay debts from your estate. In others, POD accounts are protected. Talk to an attorney in your state if you have significant debts and want to know how they might affect money you leave behind.