Which designation designates a beneficiary to receive a bank account on death and is used for checking or savings accounts?

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

Answer: (B)

A payable-on-death designation lets you name a beneficiary who will receive the funds in a bank account when you die. This setup is specifically used for checking or savings accounts and allows the account to pass outside probate directly to the named person. While you’re alive, you maintain full control of the account and can change or revoke the designation at any time. At death, the bank requires proof of death and proper identification before the funds are paid out to the beneficiary.

Totten trusts are an informal form of a trust created by naming a beneficiary, but they aren’t the standard designation you see on the bank’s account forms. Transfer on death is a related concept used in some contexts (often for other asset types), but for checking or savings accounts the typical designation shown on the account is payable on death. Probate describes the court process that would occur if there were no such designation.