Payable on death (POD) is a beneficial way to ensure that your funds are passed on to your family or heirs upon your death. It is an arrangement that an individual makes with a financial institution, such as a bank, to designate beneficiaries to their bank accounts or certificates of deposit (CDs). This arrangement, also known as a Totten trust, is typically much simpler, both to create and maintain, than the traditional trust and will, and the process of succession is much faster and more cost effective than traditional estate planning, making it an attractive option for those who want to pass on assets or cash upon death.

The POD account or CD allows the person to retain control of the account during their life and choose the beneficiary when setting up the account. After the account holder's death, the financial institution will disperse the funds of the account to the designated beneficiary, usually with little to no resistance and within a short time span.

One of the advantages of a POD account is that it is not subject to probate, meaning that the funds or assets do not have to go through the court. This allows the beneficiary to avoid the full extent of the lengthy and expensive probate process when searching for, distributing and accounting for assets after death.

PODs are also beneficial because they are easy to set up and maintain. Most banks and financial institutions provide a form that will quickly enable a person to set up a POD account or CD. Furthermore, if the person decides to change beneficiaries over time, it is usually as simple as filling out a new form with the new information.

It is important to note that with a POD, the beneficiary does not have access to the money until the account holder's death. This is because a POD is not considered an actual ownership of the assets until the owner passes away and the assets are transferred to the beneficiary. Therefore, the beneficiaries cannot sue the deceased in order to access the funds before the assets are dispersed.

Overall, establishing a POD account or CD is an efficiently efficient and cost effective way of passing on invaluable assets or cash to the people you love.