POD Accounts vs. Trusts vs. Joint Accounts: What’s Best to Avoid Probate in California?

When it comes to avoiding probate in California, not all assets are created equal. Some account types and ownership structures allow assets to pass directly to beneficiaries, while others can get tied up in the court system.

Three popular tools used to sidestep probate are:

• Payable-on-Death (POD) Accounts

• Revocable Living Trusts

• Joint Accounts with Right of Survivorship

Each method has pros, cons, and best-use scenarios. Here’s how they compare.

1. Payable-on-Death (POD) Accounts

How it works: A POD designation allows you to name a beneficiary who will automatically receive the funds in a bank account when you die.

Pros:

• Simple and easy to set up—just complete a bank form

• Avoids probate

• Immediate access to funds for the beneficiary

Cons:

• Only applies to that one account—not comprehensive

• No management if the beneficiary is a minor or disabled

• Can’t name backup beneficiaries at most banks

• Doesn't help if you become incapacitated

Best for: People with simple estates who want a fast, probate-free transfer of specific accounts.

2. Revocable Living Trust

How it works: You create a trust during your lifetime, transfer ownership of your assets (like bank accounts, real estate, and investments) into the trust, and name a successor trustee to manage and distribute them after your death.

Pros:

• Comprehensive probate avoidance

• Can handle real estate, personal property, and bank accounts

• Includes incapacity planning

• Allows for backup beneficiaries and detailed distribution instructions

Cons:

• Requires setup and ongoing maintenance

• More complex and may require an estate planning attorney

• Assets must be retitled into the trust to be effective

Best for: People with multiple assets, real estate, or blended families—especially if they want detailed control and to avoid probate entirely.

3. Joint Accounts with Right of Survivorship

How it works: Two or more people share ownership of an account. Upon one owner's death, the surviving owner automatically takes full ownership.

Pros:

• Avoids probate

• Immediate access to funds for surviving co-owner

• Simple setup at the bank

Cons:

• Risk of misuse by the co-owner during your lifetime

• Co-owner may legally access or withdraw funds at any time

• Can disinherit intended heirs if used improperly

• May complicate Medicaid or tax planning

Best for: Spouses or trusted individuals managing shared finances during life.

Which Option Is Best?

Method	Avoids Probate?	Incapacity Planning?	Best For
POD Account	✅ Yes	❌ No	Simple transfers of specific funds
Living Trust	✅ Yes	✅ Yes	Full estate plans and real property
Joint Account	✅ Yes (if titled right)	❌ No	Spouses or trusted co-owners

Final Thoughts

While POD accounts and joint ownership can be useful probate-avoidance tools, they’re best suited for limited or specific situations. If you want a comprehensive plan that includes real estate, incapacity protection, and multiple beneficiaries, a revocable living trust is usually the better choice.

Each strategy has implications for taxes, creditor protection, and inheritance rights. For a personalized plan, it’s best to consult with a California estate planning attorney to avoid costly mistakes and ensure your wishes are carried out properly.

Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions? call (626) 460-1763 or email LV@MoravecsLaw.com.

Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.