Your question is not quite clear as to what type of accounts your parents have or had, so I will just answer generally.
POD stands for payable on death, and is essentially a way to name one or more persons as "beneficiary" of an account upon the death of the account holder. If a bank account is an individual account, meaning there are no joint owners, then the POD will control the transfer of the asset upon the death of the account owner. A POD designation can also be used on a joint account, but it wouldn't take effect until the death of all joint owners. So in your case, what happens to your father's account(s) likely depends in part on whether they were his individual accounts, or whether there were any joint owners on the accounts.
Your second issue is a bit more complicated - what happens if someone is a beneficiary or heir to an asset or estate, and dies before they can "collect?" This depends on what the asset(s) are, whether any planning was done, and if so, what the planning entailed.
Any asset with a beneficiary designation, such as the POD account discussed above, or life insurance, or qualified retirement assets such as IRAs will typically pass according to a beneficiary designation. Any joint asset with survivorship rights will generally pass to the joint owner(s). For most other assets, if there was no will or trust then Oregon has a statute (known as the law of intestacy) which governs how and to whom assets will pass. If there was a will or a trust, those documents will govern the distribution of the assets.
Generally, upon your brothers death, if he has not claimed the account by either retitling the account or withdrawing the asset, then the account will be a part of his probate estate. This is true even if your brother has a Living Trust.
It seems from your question that your brother has not taken affirmative steps to transfer the asset into his Living Trust or to move the money into another account. As it stands now, that account is in your brother's name alone. In that case, the account would have to go through probate when he dies and its disposition thereafter would be controlled by his Will or by the State statute of descent and distribution and other probate laws.