I just opened a bank account, can u explain 2 me what the P.O.D designation is all about?

Question

i just opened a bank account and i have a single party account with P.O.D designation. can u tell me what this is? i picked a p.o.d beneficiary, does this mean if i die that person gets my money? if not, how do i set it up where that person gets my money? is the only way by making a will?

Answer 1

POD means Pay on Death.  All that person needs is ID and a certified copy of your death certificate.  It is an easy way to take care of it without the bother and expense of probating a will.

Of course, you should have a will, too, but POD is very useful.

Answer 2

Yes, that is exactly what it means. P.O.D--pay on death--ensures that the money in your bank account is paid to the P.O.D. beneficiary.  But it will not affect any other property such as a car or clothing or home.  That requires a will.