Payable on Death Account Agreement Template

What Is the Payable on Death Account Agreement?

A Payable on Death (POD) account agreement, also called a Totten Trust, is the simplest tool for keeping your bank accounts out of probate. You designate beneficiaries who automatically receive the account funds when you die. The funds transfer directly to your named beneficiaries without court proceedings, executor involvement, or creditor claims that typically delay estate distributions for months.

Unlike joint accounts where the other person has immediate access to your money, POD designations give beneficiaries zero rights until your death. You control every penny while you're alive. You can withdraw funds, close the account, or change beneficiaries at any time without anyone's permission. This payable on death designation protects your control while ensuring your money reaches the right people instantly.

 

 

Is This Payable on Death Account Agreement Right for You?

You need this agreement if you're:

• Holding savings or checking accounts you want to pass easily
• Naming children, grandchildren, or other family members as beneficiaries
• Avoiding the 6-12 month probate process for bank accounts
• Maintaining full control of your money during your lifetime
• Protecting minor beneficiaries through custodianship or trust provisions
• Coordinating beneficiary designations with your overall estate plan

You definitely need this agreement if:

• Your estate might face probate delays or expenses
• You want beneficiaries to access funds immediately upon death
• You're concerned about court involvement in distributing accounts
• You've remarried and want to control who inherits your accounts
• Any beneficiary is a minor requiring special provisions

 

 

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Save Money
Attorney fees for estate planning run $500-2,000. Get the same legal protection for $35.

Save Time
Download instantly and complete in 30 minutes. No appointments, no waiting, no hourly billing.

Look Professional
Banks recognize attorney-quality POD agreements. Your beneficiaries get funds without court hassles or disputes.

Keeps You Out of Court
The Automatic Transfer Mechanism clause bypasses probate entirely. The Transfer of Account Upon Death provisions ensure your bank knows exactly how to process distributions without court involvement or executor delays.

 

 

 

Get Protected in 3 Simple Steps

Step 1: Secure Checkout
Purchase securely through our encrypted payment system. Your template downloads immediately to your device.

Step 2: Instant Download
Open the Microsoft Word or Google Docs compatible file. Everything is formatted and ready for customization.

Step 3: Fill In the Highlighted Fields
Add your information, choose your beneficiaries, and select your distribution options. Take the completed agreement to your bank for filing.

 

Frequently Asked Questions

Can I use this template multiple times?

Yes. Use this payable on death account agreement for every bank account you own. Each account needs its own completed agreement filed with the specific financial institution holding that account.

Is this contract legally binding?

Yes. This POD account agreement is legally enforceable in all 50 states when properly completed, signed by you, and accepted by your financial institution. Banks are required to honor valid POD designations under state law.

Does this replace my Will?

No. POD accounts pass outside your Will and aren't controlled by Will provisions. However, if all beneficiaries predecease you and you haven't named contingent beneficiaries, the account proceeds go to your estate and are distributed according to your Will.

Can I change beneficiaries after signing this agreement?

Yes. POD designations are fully revocable. You can change beneficiaries, percentages, or completely revoke the designation at any time during your lifetime by filing a new agreement with your bank.

What happens if my bank has its own POD form?

Many banks use standard internal forms. This comprehensive agreement can supplement their form or, if your bank accepts it, replace their form entirely. Either way, this template helps you understand the legal implications and make informed decisions about beneficiary options.

Do POD accounts avoid estate taxes?

No. POD accounts avoid probate but are still included in your taxable estate for federal estate tax purposes. The probate avoidance benefit is separate from any tax planning benefit.