Designation that names a beneficiary to receive a bank account on death is called?

• A. POD (payable on death)
• B. TOD (transferable on death)
• C. Totten trust
• D. Probate

Answer: (A)

Payable on death designates a beneficiary to receive funds from a bank account when the owner dies. It creates a non-probate transfer, meaning the money goes directly to the named person without going through the will or probate process. The owner retains control of the account during life and can change or revoke the designation as long as they’re competent. While a Totten trust is another way to name a beneficiary for a bank account, the standard and most commonly used term for this purpose is payable on death. Transfer on death is a similar concept used for other asset types, and probate refers to the court process of administering an estate and does not itself designate a beneficiary.