Avoid Probate with a Pay
On Death Form
Richard Keyt (Rick, the father at 480-664-7478) and his son, former CPA Richard C. Keyt (Ricky at 480-664-7472), are Arizona estate planning attorneys with 294 5-star Google reviews and 407 5-star Google, Facebook & Birdeye reviews. They want to prepare a custom estate plan for Arizona residents that protects their most valuable assets – their loved ones. Call, email, or book a free office, phone or Zoom video meeting.
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How to Use a Bank or Investment Account Pay On Death Form
If you have a bank account or investment account, your bank or financial institution has almost certainly offered you the chance to fill out a “pay on death” form — or asked if you want to name a beneficiary on the account if you die. This article explains exactly what that form is, how it works, why people use it, its serious limitations, and how to submit one. If you are trying to build an estate plan that protects everything you own, keep reading to the end.
What Is a Pay on Death Form?
A pay on death (POD) form is a simple document you fill out with your bank or financial institution that names one or more people — or an organization — to receive the money in your account when you die. The person or entity you name is called your POD beneficiary.
When you die, your named beneficiary goes to the bank with a copy of your death certificate and proof of their identity. The bank pays the account balance directly to that beneficiary. The account does not go through probate. No court. No judge. No waiting for months. No court fees. The money transfers directly and relatively quickly.
You may also see this called a transfer on death (TOD) designation. The terms mean the same thing:
| Term | Where You'll See It |
|---|---|
| POD — Pay on Death | Checking accounts, savings accounts, money market accounts, certificates of deposit (CDs) |
| TOD — Transfer on Death | Investment accounts, brokerage accounts, individual securities |
Both work the same way. You name a beneficiary. You keep full control of the account during your lifetime — you can spend the money, close the account, or change the beneficiary any time you want. At your death, the account passes to whoever you named.
Why Do People Use Pay on Death Designations?
The main reason people use POD forms is to avoid probate for that specific account. Probate is the court-supervised legal process for distributing a deceased person's assets. In Arizona, even a modest estate can take many months and thousands of dollars to get through probate. A POD designation bypasses that process entirely — at least for the one account it covers.
Here are the most common reasons people complete POD forms:
- Speed. The beneficiary can access the funds much faster than if the account had to go through probate.
- Privacy. Probate is a public court proceeding. A POD transfer is private — the beneficiary simply presents identification and a death certificate to the bank.
- Simplicity. It is free and takes only a few minutes to complete.
- No probate costs. The account transfers without attorney fees, court costs, or executor fees charged against it.
These are all real benefits. A POD designation is a legitimate tool. The problem is what it cannot do — and most people who fill out these forms have no idea what they are getting into.
How to Add a Pay on Death Beneficiary to Your Account
The process is straightforward, but do not skip the last step — getting written confirmation.
- Contact your bank or brokerage. Call, go in person, or log in online. Ask for the beneficiary designation form, the POD form, or the TOD form. Many institutions now allow you to complete this online through your account portal.
- Gather the information you need. For each beneficiary you want to name, you will typically need:
- Full legal name (exactly as it appears on their government ID)
- Social Security number or Tax ID
- Date of birth
- Current address
- Relationship to you (spouse, child, friend, etc.)
- Complete the form. You can name a single beneficiary, multiple beneficiaries (the bank will divide the account equally among them unless you specify different percentages), or a contingent beneficiary — someone who receives the account only if your primary beneficiary has already died.
- Sign and submit. Return the completed form to the bank in person, by mail, or electronically — depending on what the institution requires. Some banks require a notary or a witness for this form; most do not.
- Get written confirmation. This is the step almost everyone skips — and it is critical. Ask the bank to confirm in writing that your beneficiary designation is recorded in their system. Banks lose paperwork. People have died, and their families later discovered that the bank had no record of the form that was submitted years earlier. Written confirmation protects you.
- Review it regularly. A POD designation does not update itself. If your beneficiary dies before you, gets divorced from you, or is someone you no longer want to inherit from you, you need to file a new form. Review your designations any time your family circumstances change — marriage, divorce, birth of a child, or death of a loved one.
The Serious Problems With Pay on Death Designations
Here is where I need to be direct with you. A POD form is not an estate plan. It is not even close. Relying solely on POD and TOD designations instead of creating a proper estate plan is one of the most common — and most costly — mistakes I see.
Problem 1: It Only Covers That One Account
Your POD designation covers one account. If you have a house, a car, furniture, jewelry, a business interest, or any other asset that does not have a beneficiary designation attached to it, those assets may still have to go through Arizona probate. A POD form on your checking account does nothing for anything else you own.
Problem 2: If Your Beneficiary Dies Before You
If your named beneficiary dies before you and you never updated the form, what happens? In most cases, the account reverts to your estate and has to go through probate — the exact outcome you were trying to avoid. If you named multiple primary beneficiaries and some have predeceased you, the surviving ones split the account, which may not be what you intended.
Problem 3: Your Beneficiary Is a Minor Child
If you name your minor child as a POD beneficiary and you die while the child is under 18, a court must appoint a conservator to manage those funds on the child's behalf. That means probate — the very thing the form was supposed to avoid. When the child turns 18, they receive the full amount with no strings attached. Eighteen-year-olds are not always the best stewards of a large inheritance.
Problem 4: Your Beneficiary Has Special Needs
If your beneficiary receives government benefits such as Medicaid or SSI and they inherit money outright through a POD designation, that inheritance could disqualify them from their benefits. Proper estate planning for a beneficiary with special needs requires a special needs trust — not a beneficiary designation form.
Problem 5: There Is No Protection for Your Beneficiary's Assets
Once your beneficiary receives the money from a POD account, it is theirs outright. If they are going through a divorce, have creditors, face a lawsuit, or file for bankruptcy, that money is fully exposed. A well-drafted estate plan can transfer assets to your beneficiaries inside irrevocable asset-protected trusts that keep the money safe for them — even from lawsuits, divorces, and creditors. A POD form provides zero protection of that kind.
Problem 6: You Cannot Attach Conditions
A POD form pays out unconditionally. You cannot say “pay this to my son when he turns 25” or “pay this only if my daughter stays sober.” A trust lets you do all of that. A POD form does not.
Problem 7: It Does Nothing Else an Estate Plan Does
A POD form does not name a guardian for your minor children if both parents die. It does not name someone to handle your financial affairs if you become incapacitated. It does not create a healthcare power of attorney. It does not express your wishes for medical treatment at the end of your life. An Arizona estate plan addresses all of these things. A POD form addresses none of them.
The bottom line: A pay on death designation on one account is not an estate plan. It is a single piece of a much larger puzzle — and a puzzle with missing pieces leaves your family exposed to probate, delays, court costs, and outcomes you never intended.
How a POD Designation Fits Into a Proper Arizona Estate Plan
Used correctly, a POD or TOD designation can be a useful part of a complete estate plan. Here is how I typically recommend using them:
The cornerstone of a proper Arizona estate plan is a revocable living trust. When your trust is created, you transfer ownership of your assets — including your bank and investment accounts — into the trust. Once an account is held in trust, there is no need for a POD designation at all, because the trust itself governs what happens to that account at your death according to detailed instructions you have already written.
For accounts that you keep outside the trust for convenience — such as a small everyday checking account — a POD designation naming your trust as the beneficiary is a clean backup that keeps that account out of probate and feeds it into your overall estate plan at death.
A complete Arizona estate plan that I create for my clients includes:
- A revocable living trust — the cornerstone that controls your assets, avoids probate, and contains your detailed instructions
- A pour-over will — a backup will that “catches” any assets not in the trust and directs them there
- A healthcare power of attorney — names someone to make medical decisions for you if you are incapacitated
- A financial power of attorney — names someone to handle your financial affairs during incapacity
- A living will (advance directive) — expresses your wishes for end-of-life medical care
- A HIPAA authorization — allows your designated people to speak with your doctors
- A guardian nomination — names who will raise your minor children if you cannot
- Optionally, irrevocable asset-protected trusts (BCAPTs) for each beneficiary — protects their inheritance from lawsuits, divorces, and creditors for the rest of their lives
A POD form on a single bank account does none of those things. It is a good start, but it is not a plan.
Frequently Asked Questions About Pay on Death Forms
Can I name my revocable living trust as a POD beneficiary?
Yes, and in many cases this is the right thing to do. Naming your trust as the beneficiary of an account you keep outside the trust ensures that the account pours into your trust at death rather than passing directly to an individual — which keeps everything under the control of your trust's instructions and out of probate.
Can I change or revoke a POD designation?
Yes. You can change or cancel your POD designation at any time while you are alive simply by filing a new form with your bank. Your current designation is not permanent. You should review it any time your life circumstances change.
Does a POD designation override my will?
Yes. A beneficiary designation on a bank or investment account controls who receives that account regardless of what your will says. If your will says everything goes to your spouse, but your bank account has a POD designation naming your sibling, the money goes to your sibling. This is one of the most common estate planning disasters I see. Your beneficiary designations must be coordinated with the rest of your estate plan.
What happens if I have no POD designation on my account?
If you die with no POD beneficiary named, the account becomes part of your estate. If you have no valid trust or will directing where it goes, it may have to go through Arizona probate — which is a court process that takes time and money and becomes a public record.
Does Arizona law protect my POD beneficiary designation?
Arizona follows the Uniform TOD Security Registration Act and has statutes recognizing POD and TOD designations on financial accounts. Your properly completed and recorded designation is legally binding in Arizona.
Ready to Build an Estate Plan?
If filling out a pay on death form is the only estate planning you have done, I want to help you do this right. You deserve a complete plan — one that protects everything you own, names the people you trust to care for you and your family, keeps your estate out of probate, and protects what you leave behind for the people you love.
My son Ricky and I have helped more than 1,000 Arizona families create complete estate plans. We use flat-fee pricing so you know exactly what everything will cost before we start. We serve clients throughout the Phoenix metro area — Scottsdale, Paradise Valley, Phoenix, Mesa, Tempe, Chandler, Queen Creek, and beyond.
Schedule a free office, phone or Zoom video meeting to get answers to your questions and discuss your estate plan. We will answer your questions and explain exactly what a complete plan includes and what it costs.
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About the Authors
Richard Keyt (Rick) is an Arizona estate planning and LLC attorney at KEYTLaw, LLC in Scottsdale, Arizona. He has practiced Arizona law since 1979 and has completed more than 1,000 Arizona estate plans. His son and law partner, Richard C. Keyt (Ricky), is an attorney and a former CPA. Together they serve clients throughout Scottsdale, Paradise Valley, Phoenix, Mesa, Tempe, Gilbert, Glendale, Peoria, Surprise, Chandler, and Queen Creek. See their website at https://www.keytlaw.com and the fee and the 36 documents & services in their estate plan.Disclaimer: We are Arizona attorneys, but not your attorney. This information is for educational purposes only and does not create an attorney-client relationship. Arizona laws are unique; always consult a local professional regarding your specific situation.
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Call or email Richard Keyt, the father
Direct phone: 480-664-7478
Email: [email protected]
Call or email Richard C. Keyt, the son
Direct phone: 480-664-7472
Email: [email protected]