Yes, you can add a beneficiary to most bank accounts, but it works differently than adding a co-owner
A beneficiary is a person who receives money from your account after you die — they do not have access to the account while you are alive, and they do not need to sign anything or appear in person. You name them on a form called a Payable on Death (POD) designation or Transfer on Death (TOD) designation, depending on your bank's terminology. The money bypasses your will and goes directly to them, which usually means faster access and lower costs than probate.
Not every account type allows this. Checking and savings accounts almost always do. Money market accounts usually do. Certificates of Deposit (CDs) typically do. Joint accounts can have beneficiaries, though the rules about what happens to the money vary by state. Investment accounts and retirement accounts (IRAs, 401(k)s) have their own beneficiary systems that work separately from bank accounts.
The process is straightforward: contact your bank, ask for the POD or TOD form, name your beneficiary with their full legal name and Social Security number, sign it, and return it. Most banks let you do this online, by mail, or in person. There is no cost, and it takes effect immediately, though the beneficiary will not receive anything until after you die and the bank is notified.
Key Takeaways
- A beneficiary on a bank account receives the money after you die without going through probate, but has no access while you are alive.
- You name a beneficiary using a Payable on Death (POD) or Transfer on Death (TOD) form, which your bank provides at no cost.
- Checking, savings, and money market accounts almost always allow beneficiaries; retirement and investment accounts use separate beneficiary systems.
- You can name multiple beneficiaries and decide what percentage each one receives, though rules vary by bank and state.
- The beneficiary designation overrides your will, so if you name someone as a beneficiary and someone else in your will, the beneficiary gets the money.
How to name a beneficiary at your bank
Start by calling your bank's customer service line or visiting a branch and asking for the POD or TOD form. Some banks call it a "beneficiary designation form" or "transfer on death form" — the name varies, but the function is the same. Ask whether you can complete it online, by mail, or in person; most large banks offer all three options.
On the form, you will need to provide your beneficiary's full legal name (the name on their birth certificate or ID), their date of birth, and their Social Security number. If you want to name more than one beneficiary, you will list each one and specify what percentage of the account each receives — for example, 50% to your daughter and 50% to your son. If you do not specify percentages, most banks split the money equally among all named beneficiaries.
Sign the form in front of a bank employee or notary, depending on what your bank requires. Return it to the bank by mail or in person. The bank will file it in your account records, and you will usually receive a confirmation. That is the entire process. You do not need your beneficiary's permission, and they do not need to sign anything.
What happens to the money when you die
When you die, your family or executor needs to notify the bank and provide a death certificate. The bank will verify the beneficiary information on file and transfer the money directly to the beneficiary's account or issue a check. This usually takes one to four weeks, depending on how quickly the bank processes the paperwork and whether there are any complications.
The money does not go through probate, which means it does not have to wait for a court to approve your will or settle your debts. However, if your account has outstanding debts — unpaid taxes, medical bills, or judgments against you — creditors may still have a claim on the money in some states. The beneficiary receives what is left after those claims are resolved.
If you name a beneficiary and also leave money to someone else in your will, the beneficiary designation wins. The person named on the POD form gets the account balance; the will does not override it. This is why it is important to keep your beneficiary designation up to date if your circumstances change.
Changing or removing a beneficiary
You can change your beneficiary at any time while you are alive. Contact your bank and ask for a new POD or TOD form. Fill it out with the new beneficiary information, sign it, and return it to the bank. The new form replaces the old one. Some banks let you do this entirely online; others require you to visit a branch or mail in a signed form.
If you want to remove a beneficiary without naming a replacement, you can do that too — just submit a new form that leaves the beneficiary field blank. The account will then have no beneficiary designation, and the money will go through probate or to your estate when you die, depending on your state's laws.
Keep in mind that if you are married, your spouse may have rights to the account under your state's community property or spousal elective share laws, even if you name someone else as the beneficiary. Check with your bank or a lawyer if you are unsure how this works in your state.
Beneficiaries on joint accounts
If your account is jointly owned with someone else, you can still add a beneficiary. However, what happens to the money depends on how the joint account is set up and what your state's laws say. In most states, if a joint account has a "right of survivorship," the surviving joint owner gets the money automatically when the other owner dies — the beneficiary designation does not override this.
If the joint account does not have a right of survivorship, the beneficiary designation applies to the deceased owner's share of the account. The surviving joint owner keeps their share, and the beneficiary gets the rest. The rules are complicated and vary significantly by state, so ask your bank how a beneficiary designation would work on your specific joint account before you name one.
Retirement accounts and investment accounts are different
If you have an IRA, 401(k), brokerage account, or other investment account, those accounts have their own beneficiary systems that are separate from your bank's POD form. You name beneficiaries directly with the investment company or retirement plan administrator, not through your bank. The rules about taxes, required distributions, and what beneficiaries can do with the money are different for each account type.
If you have both a bank account and a retirement account, you will need to name beneficiaries on both separately. They do not automatically carry over from one to the other. Review all your accounts and make sure each one has a current beneficiary designation on file.
What to do if your bank does not offer POD accounts
Most banks and credit unions offer POD designations, but a few smaller institutions do not. If your bank does not, you have other options. You can open a new account at a bank that does offer POD, or you can explore alternatives like a revocable living trust, which lets you name beneficiaries and avoid probate without using a POD form.
A revocable living trust is more complex and usually costs money to set up (typically $500 to $2,000 with a lawyer), but it gives you more control over how the money is distributed and can handle multiple accounts and assets in one document. A POD form is simpler and free, so if your bank offers it, that is usually the easier choice.
Frequently Asked Questions
Can a beneficiary access my account before I die?
No. A beneficiary has no access to the account while you are alive. They cannot withdraw money, see the balance, or make changes. Only you and anyone else listed as a co-owner can access the account during your lifetime. The beneficiary only receives the money after you die and the bank is notified.
What if I name someone as a beneficiary and then get divorced?
The beneficiary designation stays in effect unless you change it. If you divorce and want your ex-spouse removed as a beneficiary, you need to submit a new form to your bank. Some states automatically remove a spouse as a beneficiary after divorce, but not all, so do not assume it happens automatically — contact your bank to confirm.
Can I name a minor as a beneficiary?
Yes, but the money cannot be given directly to a minor. When you die, the bank will hold the money or give it to a court-appointed guardian until the minor reaches the age of majority (usually 18 or 21, depending on your state). You can avoid this by naming a trust as the beneficiary instead, which lets you specify how the money is managed for the minor.
Do I need to tell my beneficiary that I named them?
You do not have to, but it is a good idea. If your beneficiary does not know they are named, they may not know to contact the bank after you die, and the money could sit in the account for years. Let them know you have named them and where the account is located so they can take action when the time comes.
What if I die without naming a beneficiary?
The money becomes part of your estate and goes through probate. A court will distribute it according to your will, or if you do not have a will, according to your state's intestacy laws. This process is slower and more expensive than a beneficiary designation, which is why naming one is worth doing.