Legal Definitions - POD

Definition: Payable-on-death (POD) refers to a designation that allows a bank account or other asset to be directly transferred to its assigned beneficiary upon the death of the owner.

For example, if someone has a bank account with a POD designation, they can choose a beneficiary to receive the money in the account when they pass away. This means that the beneficiary can receive the money without having to go through a long and expensive legal process called probate.

POD can be used for other assets besides bank accounts, such as stocks, bonds, and real estate. It is a way to make sure that the asset goes to the person the owner wants to have it, without any legal complications.

One thing to keep in mind is that the owner of a POD asset can change the beneficiary while they are still alive. However, if the beneficiary passes away before the owner, there is no way to assign a new beneficiary. In that case, the asset will be distributed according to the owner's will or other legal documents.