A more thorough explanation:

A pay-on-death account is a type of bank account where the owner instructs the bank to distribute the account's balance to a beneficiary upon the owner's death. Unlike a joint-and-survivorship account, a pay-on-death account does not give the beneficiary access to the funds while the owner is alive.

For example, John has a pay-on-death account with his bank and has named his daughter, Sarah, as the beneficiary. If John passes away, the bank will distribute the account's balance to Sarah without going through probate.

This type of account is useful for people who want to ensure that their assets go directly to a specific person without the need for probate. It is also important to keep the beneficiary designation up to date to ensure that the intended person receives the funds.