On bank accounts, the difference between POD, ITF and TOD

Attorney Holley Knapik: Interestingly enough, it was about the confusion between POD and TOD and naming beneficiaries on those checking and savings accounts at their financial institution. There is a lot of confusion.

Attorney Tom Olsen: Maybe you're thinking because we have the POD, TOD, and then ITF.

Attorney Holley Knapik: Exactly. They're not sure, "Well, what does it mean and what does it do? I just walked in and told the bank, 'I need a beneficiary,' and they said, 'Well, that's not what we do.'" That's because certain institutions use either payable on death, which is POD, or transfer on death, which is TOD, or ITF, in trust for, which all three essentially mean the same thing. You're naming someone to receive the funds in those accounts upon your passing, and the only requirement is that they supply a death certificate to that financial institution, avoiding probate.

[00:00:59] [END OF AUDIO]