POD (Payable on Death)
A designation on a bank account that specifies who receives the funds when the account holder dies. The named beneficiary can claim the funds directly from the bank without probate.
Legal Definition
A beneficiary designation on a deposit account that directs the financial institution to pay the account balance to a designated beneficiary upon the death of the account owner, without the need for probate administration.
Practical Example
Harold sets up his savings account as POD to his grandson. Harold maintains full control while alive. When Harold dies, his grandson brings a death certificate to the bank and receives the account balance directly.