No, a payable-on-death (POD) account typically skips over the probate process. This is because a POD account already has a named beneficiary who is meant to take over as the account holder when the original owner passes away.
Because the beneficiary designation has been made in advance, the account almost immediately leaves the deceased person’s estate. The beneficiary gains access and becomes the account holder, and they do not have to wait for probate to be completed.
In fact, this quick and easy access is one of the main benefits of using a POD account in the first place. It means that the beneficiary can use the funds when needed. For instance, some people create a POD account specifically so that a selected beneficiary can use the money to cover funeral costs, burial costs and similar expenses.
Is probate still necessary?
Yes, just because someone uses a POD account does not mean that they can skip probate entirely. They may still have many other assets that do need to go through probate and get passed on using a will, a trust or other aspects of their estate plan.
But every situation is unique. For some people, the POD account may be just a minor side issue as they try to quickly give their family access to money that they need. For others, it may be a way to transfer the bulk of their wealth, which they have deliberately held in that POD account for that reason.
During the probate process, it is very important for those involved to understand exactly what legal steps to take when addressing these complex assets.