How to Create a Beneficiary for a Certificate of Deposit

If you can't afford to get an attorney or if you just want to avoid probating some of your assets, creating a beneficiary for your Certificate of Deposit (CD) will be of interest to you. It's free and easy to do if you know all the initial steps to take.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Certificate of Deposit

1. Choose the beneficiary that you want for the Certificate of Deposit. If you change your mind later, don't worry: It's easy to change the beneficiary.
2. Obtain some pertinent information about your beneficiary. You need to know their social security number and date of birth, for identification, in the event that you die. Also double-check their full legal name.
3. Understand that POD is the term that is used for a beneficiary on bank products. It means "payable upon death" and can be used on any type of bank product.
4. Contact your local financial institution. They may be able to add a POD in the middle of the Certificate of Deposit term. If not, schedule an appointment with a banker when the CD comes due.
5. List the numbers of the Certificates of Deposit that have POD on them and the financial institutions with which they're located. Keep this list with your will and other legal documents, and update it regularly.

Tips & Warnings

• Avoid adding a joint owner to the Certificate of Deposit. While it is probate-free, it also allows the other party total access to the account. A POD never allows access unless you're deceased.