A bank account is often the first thing a family reaches for and the simplest to overlook. How it passes on depends almost entirely on one small detail: whether the owner named someone to receive it. That single choice decides whether the money moves quietly and directly, or waits for the slower machinery of the estate.
Naming a beneficiary on a bank account or CD
What POD, ITF, TOD, and a Totten trust mean
Banks use several names for the same simple idea. A payable on death (POD) designation — also called in trust for (ITF), a Totten trust, or sometimes TOD — lets the owner name a beneficiary who receives the account or certificate of deposit (CD) when the owner dies. The labels differ from bank to bank, but they generally describe the same arrangement: a revocable designation the owner can change at any time during life.
How it skips probate — and how it differs from a joint account
A POD designation generally lets the money pass directly to the named beneficiary, outside probate and outside whatever the will says. The will does not control it. That is what makes it quiet: the beneficiary deals with the bank rather than the court.
A joint account with right of survivorship is a different thing. There, the account already has more than one owner, and when one dies, the surviving co-owner generally keeps it. Both arrangements avoid probate, but they are not the same — one names a future recipient, the other shares ownership now. It is worth confirming with the bank which one actually applies to a given account.
A ‘payable on death’ line on an account does quietly what a will cannot — it hands the money straight to the person you named.
Is your money protected? FDIC and NCUA basics
The $250,000 rule
Deposits at an insured bank are protected by the FDIC. As of 2026, that coverage is $250,000 per depositor, per insured bank, per ownership category. The phrase “ownership category” matters: single accounts, joint accounts, and trust accounts are counted separately, so the same person can be covered for more than $250,000 at one bank depending on how the accounts are titled.
How naming beneficiaries can raise a POD or trust account’s coverage
Under a rule that took effect April 1, 2024, POD and trust accounts are insured under a single “trust accounts” category at $250,000 per eligible beneficiary, up to a maximum of $1,250,000 per owner — that is, with five or more beneficiaries. So naming beneficiaries can, in some cases, extend coverage beyond the basic $250,000. The exact result depends on how the account is structured, which is worth confirming with the bank or the FDIC.
Credit unions and the NCUA
Credit unions work much the same way, but through a different insurer. Federally insured credit unions are covered by the NCUA at the same $250,000 per member. The NCUA’s matching trust-account rule takes effect December 1, 2026 — so as of mid-2026 it is not yet in effect. If a credit union is involved, it is worth checking current coverage with the credit union or the NCUA.
When an account goes quiet: dormant accounts and unclaimed property
An account can be forgotten without being lost. If an account sees no activity for a period the state sets — a dormancy period, commonly somewhere in the range of three to five years, though it varies from state to state — the bank is generally required to turn the funds over to the state’s unclaimed-property program. This handoff is called escheatment.
The important thing to know is that the money is not gone. It is being held by the state, and it can still be claimed for free. This is one reason a family benefits from knowing an account existed in the first place: a forgotten CD that quietly escheats years later is far easier to recover when someone knew to look for it.
What a survivor or executor does
A POD or beneficiary account
For a POD or beneficiary account, the named beneficiary generally claims it by giving the bank a certified death certificate and identification. Because the account passes outside the estate, this can often be handled directly with the bank rather than through probate. Exact documentation can vary, so it is worth asking the bank what it requires.
An account with no beneficiary
An account with no beneficiary generally passes through the estate, which usually means it is handled by the executor or personal representative as part of probate. This is slower and more involved than a direct beneficiary claim — the practical difference a single POD form can make.
Searching MissingMoney.com
If money may already have gone unclaimed, a survivor can search for free at MissingMoney.com, a site sponsored by the state unclaimed-property administrators. A claim is then made through the holding state’s official program, with proof of identity and ownership. Searching and claiming are free; you should not have to pay a finder to recover your own family’s money.
Common questions
Does a payable-on-death account avoid probate?
Generally, yes. A payable-on-death (POD) designation — also called in trust for (ITF), a Totten trust, or sometimes TOD on a bank account — lets the money pass directly to the named beneficiary when the owner dies, outside probate and outside the will. A joint account with right of survivorship is different: there the surviving co-owner generally takes the account. Either way, confirm the specifics with the bank, since terms and forms vary.
How much of my bank account is FDIC-insured in 2026?
As of 2026, FDIC deposit insurance is $250,000 per depositor, per insured bank, per ownership category. Under a rule that took effect April 1, 2024, POD and trust accounts fall under a single trust accounts category that is insured at $250,000 per eligible beneficiary, up to a maximum of $1,250,000 per owner with five or more beneficiaries. Coverage depends on how accounts are titled, so confirm your own situation with the bank or the FDIC.
Are credit unions insured like banks?
Generally, yes. Federally insured credit unions are covered by the NCUA at the same $250,000 per member, in place of the FDIC. The NCUA’s matching trust-account rule takes effect December 1, 2026, so as of mid-2026 it is not yet in effect. Confirm current coverage with the credit union or the NCUA.
What happens to a bank account no one touches for years?
If an account sees no activity for a state-set dormancy period — commonly three to five years, though it varies by state — the bank is generally required to turn the funds over to the state’s unclaimed-property program. The money is not lost. It can still be claimed for free through the state’s official program, with proof of identity and ownership.
How do I find and claim money a relative left in a bank?
For a payable-on-death or beneficiary account, the named beneficiary generally claims it by giving the bank a certified death certificate and identification. An account with no beneficiary generally passes through the estate. If funds may have gone unclaimed, you can search for free at MissingMoney.com, which is sponsored by the state administrators, and then claim through the holding state’s official program with proof of identity and ownership.
Recording this now is the easy part
Almost everything above gets simpler if the people you love already know where to look — which banks, which accounts, and whether a beneficiary was named. That is the whole idea behind Trust Relay: a quiet, private map of where your accounts live, kept ready, so your family isn’t left guessing about an account they never knew existed.