A payable on death account is a POD account. Another name for a POD account is a Totten trust or a transfer on death (TOD) account. A POD account is a simple matter. The name indicates that all contents of a specific account are to be transferred to the named individual upon death of the holder of the account. It requires nothing of the beneficiary. A designation of a POD account assigns the contents of the account to be separate from the estate. As a result, it is not included in the probate process. The named individual for the POD account receives or inherits the account free and clear. There are no income tax consequences at either a state or federal level. The owner of the account can alter the designation at will.