Payable on death account (Vertrag zu Gunsten Dritter auf den Todesfall)

Under German law, a person may name somebody as beneficiary of the balance of the account in the event of his death (Payable on Death Account). The entitlement generally overrides the Wiill and the bank may pay to the beneficiary with discharging effect. However, under certain conditions, the heir may have the right to claim the funds from the beneficiary. Payment to the beneficiary may also result in claims of a forced heir.