Short answer

Under Alaska law, payable-on-death (POD) or transfer-on-death (TOD) accounts generally pass outside probate directly to the named beneficiary. That usually means those funds do not become part of the deceased person’s probate estate and are not automatically available to be paid by the personal representative during probate. However, creditors may still have remedies—depending on timing, the nature of the debt, and whether a transfer is challenged—so POD/TOD accounts are not always a safe place to hide assets from valid creditor claims. For official information about Alaska probate law, see the Alaska statutes and the Alaska court system probate pages: Alaska Statutes (Title 13 — Estates) and Alaska Court System — Probate.

How POD/TOD accounts normally work in Alaska

POD/TOD designations name a beneficiary who receives funds directly when the account owner dies. Because the funds transfer by contract or registration rather than by probate, they typically bypass probate court. Banks and financial institutions pay the named beneficiary after being presented with a death certificate and appropriate identification. This makes POD/TOD accounts fast and simple for beneficiaries.

Can creditors reach POD/TOD funds?

There are three common scenarios where creditors might still reach POD/TOD funds in Alaska:

1. Creditor claims against the probate estate: If the decedent had other probate estate assets, creditors usually must file claims against that probate estate within the time allowed. If the probate estate is insufficient, creditors may explore other remedies, but they do not automatically get paid from POD/TOD assets simply because they could not collect from probate assets.
2. Fraudulent transfers or intent to defraud: If the POD/TOD designation was created, changed, or funded to hide assets from known creditors or to defeat existing creditor claims, a creditor can challenge the transfer. Courts can set aside or void transfers made with intent to defraud creditors. Evidence that the transferor intended to place assets out of reach of creditors (especially after debts were owed or lawsuits were pending) supports a creditor challenge.
3. State law remedies and exceptions: In some states creditors can use nonprobate-remedies (such as equitable causes of action or statutory causes) to reach nonprobate transfers. Alaska courts also recognize circumstances where nonprobate transfers may be attacked or where subrogation, tracing, or other claims apply. See Alaska’s probate resources for procedures and creditor guidance: Alaska Court System — Probate.

Because outcomes depend on facts (timing, notice to creditors, whether a transfer was revocable, and whether the transfer was intended to hinder creditors), you cannot assume POD/TOD funds are untouchable.

Typical steps creditors take — and what beneficiaries or account holders should expect

If a creditor believes it is owed money, it will normally:

• Investigate the decedent’s assets (probate and nonprobate).
• File a claim in the probate proceeding if an estate is opened and the claim deadline applies.
• If probate assets are insufficient and there is evidence of improper transfers, file a lawsuit to set aside or reach nonprobate transfers (this often requires showing fraud or intent to defeat creditors).

From the beneficiary/account holder side, financial institutions usually will not release POD/TOD funds until presented with a certified death certificate and the beneficiary’s identification. If a dispute arises, the bank may freeze the account pending a court order or resolution of creditor claims.

Practical examples

Example A (no creditor challenge): Jane names her daughter as POD beneficiary on her bank account. Jane dies with a few small bills but no probate assets. The bank pays the daughter directly; no probate claim exists, and creditors have no practical way to reach the POD funds.

Example B (challenge for intent to defraud): Mark owes a large creditor and, shortly before his death, he changes his account to name a friend as POD beneficiary and withdraws other assets. The creditor sues, alleging the POD change was intended to hinder collection. A court can examine the timing and purpose and may set aside the transfer if it finds intent to defraud.

What to do if you are a beneficiary or a creditor

If you are a beneficiary:

• Obtain a certified copy of the death certificate and the decedent’s account statements showing the beneficiary designation.
• Notify the bank and follow its procedures for releasing POD funds.
• If creditors contact you, do not transfer funds until you understand whether the transfer is subject to a court claim; consider seeking legal advice.

If you are a creditor:

• Determine whether an estate probate has been opened and whether you timely filed a claim.
• Investigate nonprobate transfers and timing of beneficiary designations.
• If you suspect a fraudulent transfer, consult an attorney about filing an action to set aside the transfer or otherwise enforce your claim.

Helpful hints

• Keep beneficiary designations up to date and document why you make changes. Sudden changes near the time of death invite scrutiny.
• Don’t assume POD/TOD funds are immune from court challenges—timing and intent matter.
• If possible, address known creditor issues during life (payment, settlement, or clear documentation) to reduce post-death disputes.
• When in doubt, open a small estate or probate proceeding so claims can be resolved formally and creditors get notice.
• Talk with an Alaska attorney about preserving assets and complying with creditor-protection laws in your circumstances. See Alaska probate information: Alaska Court System — Probate, and the Alaska statutes overview here: Alaska Statutes (Title 13).