A more thorough explanation:

A payable-on-death (POD) designation is a legal arrangement that allows a person to designate a beneficiary to receive their property upon their death. This beneficiary is known as the designee. The POD designation does not transfer ownership of the property until the death of the designator.

POD designations are often used in estate planning because they are easy to set up. They are considered a "will substitute" because they allow the designator to transfer property without going through the probate process.

For example, if a person has a POD designation on their bank account, they can name a beneficiary to receive the funds in the account upon their death. The beneficiary does not have access to the funds during the designator's life and cannot withdraw any money before the designator's death. The beneficiary also has no legal recourse to protect themselves against wasteful uses of the fund by the designator.

Another example of a POD designation is a beneficiary designation on a life insurance policy. The designator can name a beneficiary to receive the death benefit upon their passing.

Overall, a POD designation is a way for a person to transfer property to a beneficiary without the need for a will or probate. However, it is important to understand the limitations and restrictions of a POD designation before setting one up.