Payable-on-Death Deposit-Account Beneficiary Rules in Delaware

At a glance

Requirements one by one

Covered accounts, form, and eligible payees

Delaware's trust-account rule reaches savings accounts, interest- or noninterest-bearing transaction accounts, time deposits whether or not evidenced by a certificate, and similar deposits in a banking organization. A POD account qualifies when an agreement makes it payable to the depositor during life and to a beneficiary after death. The default is one beneficiary, who must be a natural person or a qualifying 501(c)(3) nonprofit; the institution's agreement, rules or regulations may allow more. See 5 Del. C. § 924(a)(1)–(3).

Lifetime control and joint depositors

During the depositor's life, the trust can be revoked, terminated or modified through authorized withdrawals or charges, or through a non-will writing received by the banking organization. For multiple depositors, § 924(e) treats the depositors as joint tenants. Either depositor may receive payment during life under § 923, and the surviving depositor or depositors take the funds after one depositor dies, subject to the trust. See 5 Del. C. §§ 923, 924(b)(1)–(2), (e).

Death order and beneficiary shares

If the beneficiary survives the depositor, title vests in the beneficiary; if the depositor survives the beneficiary, the funds remain with the depositor. When the order of death cannot be determined, Delaware conclusively presumes that the depositor survived and sends title to the depositor's estate. Although the institution's agreement or rules may permit more than one beneficiary, § 924 states a one-beneficiary default and does not set a statutory share formula for multiple beneficiaries. See 5 Del. C. § 924(a)(1), (b)(3)–(5).

Payment and institutional protection

An adult surviving beneficiary may order payment. If the beneficiary is under 18, the banking organization may pay the parent or parents for the minor's use and benefit or the duly appointed guardian of the minor's property. Payment made before the institution is served with a restraining order, injunction or other appropriate court process prohibiting payment releases the banking organization to the extent of the payment. See 5 Del. C. § 924(c)–(d).

What trips people up

• On a multiple-depositor account, the surviving depositor or depositors take the funds before the beneficiary's interest operates, subject to the trust terms. See 5 Del. C. § 924(e).
• A will cannot revoke, terminate or modify this trust account. The effective lifetime change must use a permitted withdrawal, charge or non-will writing received by the banking organization while the depositor is living. See 5 Del. C. § 924(b)(1)–(2).
• The statute's default is one beneficiary. Any multiple-beneficiary arrangement depends on the banking organization's agreement, rules or regulations, so the account contract matters for both eligibility and distribution. See 5 Del. C. § 924(a)(1).

Common questions

Can a Delaware POD account name a nonprofit?

Yes. Section 924 defines a beneficiary to include a nonprofit organization qualified under 26 U.S.C. § 501(c)(3). See 5 Del. C. § 924(a)(1).

What happens if the depositor and beneficiary die in an uncertain order?

The statute conclusively presumes that the depositor survived, so title goes to the depositor's estate. See 5 Del. C. § 924(b)(5).

Can a minor beneficiary collect directly?

The statute permits payment to a parent or parents for the minor's use and benefit, or to the minor's duly appointed property guardian. See 5 Del. C. § 924(c).

Statutes and sources

• 5 Del. C. §§ 923–924. Official current Title 5 Chapter 9 Subchapter I text. Accessed October 9, 2026.