Tod

It can take years to settle a decedent’s estate through probate, and the executor usually can’t transfer any of the decedent's assets to his beneficiaries until she has addressed and resolved many other issues. This means that if you intend that your spouse should have access to your checking account after your death, she can’t access the money unless you title the account in a way that avoids probate. Otherwise, it belongs to your estate until your executor settles and closes it, and that could be a long time. Technically, a beneficiary is anyone or any entity who receives property from you after your death. This commonly occurs when property conveys through a last will and testament. You might leave all your property to a group of individuals, such as your children, or you might leave specified items to each person. They’re all your beneficiaries under the terms of your will. Life insurance policies and retirement accounts also have beneficiaries. You can name an individual, such as your spouse, or you can name your estate as your beneficiary in your contracts with these companies and financial institutions. They'll receive these assets when you die. Types of Transfer-on-Death Accounts A transfer-on-death account also has a beneficiary, because it transfers to someone when you die. A transfer-on-death account is one set up by arrangement with your banking institution to pay the balance to someone named by you at the time of your death. If you want to leave your spouse yo...

When it comes to estate planning, it’s easy to opt for the fastest, simplest and cheapest path forward. Sometimes that includes using transfer on death (TOD) or payable on death (POD) account registrations to avoid probate and other expenses. However, there are some major pitfalls to this account registration strategy. We review the pros and cons of transfer on death accounts. What Is A Transfer On Death / Payable On Death Account? A transfer on death (TOD) account is a type of beneficiary designation that names recipient beneficiaries to receive the assets of the account at the time of the account holder’s death, without the assets going through probate. You can name one or more recipients who receive the assets outright through direct distribution from your account. A payable on death (POD) account is very similar to a TOD arrangement but deals with a person’s bank assets instead of their stocks, bonds, mutual funds or other investment assets. What Are The Benefits (Pros) of a Transfer On Death / Payable On Death Account? Free To Implement Virtually every bank and financial institution offers this type of account registration, with naming of beneficiaries on an account. These accounts can be established free of charge at most institutions. Easy To Administer Just like naming and changing beneficiary designations on your retirement account or life insurance policy, such changes are easy to implement on TOD or POD accounts. All you need to do is complete new paperwork with...

Please be aware of the pitfalls of using a TOD transfer on death beneficiary designation. (Photo ... [+] credit should read STR/AFP via Getty Images) AFP via Getty Images When you set up an account to "transfer on death," the assets will go directly to beneficiaries upon the owner's death. While these assignments can While simply titling an account "Transfer on Death" and adding a beneficiary or two may seem common sense, it may not always be so simple. This type of account can easily be set up on most investment accounts. The main benefit to these types of accounts is that assets can be transferred relatively quickly to a beneficiary, and the costly and timely process of probating the assets is avoided. Another advantage is beneficiaries can be changed more easily than amending a trust, for example. As they say, there is no free lunch. Titling an account "transfer on death" will not solve all your estate planning needs. Likewise, mistakes or omissions can be made with any beneficiary designations. Here are a few of the issues you need to be aware of when using a Transfer on Death (TOD) account titling. A new marriage should prompt you to review you beneficiaries. NEW ORLEANS, LA - NOVEMBER 16: Jay Z ... [+] (L) and Beyonce Knowles attend the secondline following sister Solange Knowles and her new husband, music video director Alan Ferguson's wedding on the streets of New Orleans on November 16, 2014 in New Orleans, Louisiana. (Photo by Josh Brasted/WireImage) WireImage Li...

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations. A person named as a transfer on death (TOD) beneficiary for an account will receive the assets held in it when the account owner dies. It’s possible to name a TOD beneficiary for many account types—retirement accounts, savings accounts, and even brokerage accounts—and this can help you and your heirs avoid the sometimes costly process of The rules are quite broad when it comes to naming TOD beneficiaries. A TOD beneficiary can be a person, charity, business, or trust. If the beneficiary is a person, they can be a relative, child, spouse, friend, or anyone else you happen to know. However, if you are married, your spouse may have special rights over your assets that take precedence over your named TOD beneficiaries. • Naming a transfer on death (TOD) beneficiary for your accounts can make the inheritance process much simpler, because your named beneficiary will automatically receive the assets in the account, thus bypassing probate. • You can name almost anyone as a TOD beneficiary: family, friends, or anyone else. You can also name charities, businesses, or trusts. • Many account types allow you t...

Please be aware of the pitfalls of using a TOD transfer on death beneficiary designation. (Photo ... [+] credit should read STR/AFP via Getty Images) AFP via Getty Images When you set up an account to "transfer on death," the assets will go directly to beneficiaries upon the owner's death. While these assignments can While simply titling an account "Transfer on Death" and adding a beneficiary or two may seem common sense, it may not always be so simple. This type of account can easily be set up on most investment accounts. The main benefit to these types of accounts is that assets can be transferred relatively quickly to a beneficiary, and the costly and timely process of probating the assets is avoided. Another advantage is beneficiaries can be changed more easily than amending a trust, for example. As they say, there is no free lunch. Titling an account "transfer on death" will not solve all your estate planning needs. Likewise, mistakes or omissions can be made with any beneficiary designations. Here are a few of the issues you need to be aware of when using a Transfer on Death (TOD) account titling. A new marriage should prompt you to review you beneficiaries. NEW ORLEANS, LA - NOVEMBER 16: Jay Z ... [+] (L) and Beyonce Knowles attend the secondline following sister Solange Knowles and her new husband, music video director Alan Ferguson's wedding on the streets of New Orleans on November 16, 2014 in New Orleans, Louisiana. (Photo by Josh Brasted/WireImage) WireImage Li...

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations. A person named as a transfer on death (TOD) beneficiary for an account will receive the assets held in it when the account owner dies. It’s possible to name a TOD beneficiary for many account types—retirement accounts, savings accounts, and even brokerage accounts—and this can help you and your heirs avoid the sometimes costly process of The rules are quite broad when it comes to naming TOD beneficiaries. A TOD beneficiary can be a person, charity, business, or trust. If the beneficiary is a person, they can be a relative, child, spouse, friend, or anyone else you happen to know. However, if you are married, your spouse may have special rights over your assets that take precedence over your named TOD beneficiaries. • Naming a transfer on death (TOD) beneficiary for your accounts can make the inheritance process much simpler, because your named beneficiary will automatically receive the assets in the account, thus bypassing probate. • You can name almost anyone as a TOD beneficiary: family, friends, or anyone else. You can also name charities, businesses, or trusts. • Many account types allow you t...

It can take years to settle a decedent’s estate through probate, and the executor usually can’t transfer any of the decedent's assets to his beneficiaries until she has addressed and resolved many other issues. This means that if you intend that your spouse should have access to your checking account after your death, she can’t access the money unless you title the account in a way that avoids probate. Otherwise, it belongs to your estate until your executor settles and closes it, and that could be a long time. Technically, a beneficiary is anyone or any entity who receives property from you after your death. This commonly occurs when property conveys through a last will and testament. You might leave all your property to a group of individuals, such as your children, or you might leave specified items to each person. They’re all your beneficiaries under the terms of your will. Life insurance policies and retirement accounts also have beneficiaries. You can name an individual, such as your spouse, or you can name your estate as your beneficiary in your contracts with these companies and financial institutions. They'll receive these assets when you die. Types of Transfer-on-Death Accounts A transfer-on-death account also has a beneficiary, because it transfers to someone when you die. A transfer-on-death account is one set up by arrangement with your banking institution to pay the balance to someone named by you at the time of your death. If you want to leave your spouse yo...

When it comes to estate planning, it’s easy to opt for the fastest, simplest and cheapest path forward. Sometimes that includes using transfer on death (TOD) or payable on death (POD) account registrations to avoid probate and other expenses. However, there are some major pitfalls to this account registration strategy. We review the pros and cons of transfer on death accounts. What Is A Transfer On Death / Payable On Death Account? A transfer on death (TOD) account is a type of beneficiary designation that names recipient beneficiaries to receive the assets of the account at the time of the account holder’s death, without the assets going through probate. You can name one or more recipients who receive the assets outright through direct distribution from your account. A payable on death (POD) account is very similar to a TOD arrangement but deals with a person’s bank assets instead of their stocks, bonds, mutual funds or other investment assets. What Are The Benefits (Pros) of a Transfer On Death / Payable On Death Account? Free To Implement Virtually every bank and financial institution offers this type of account registration, with naming of beneficiaries on an account. These accounts can be established free of charge at most institutions. Easy To Administer Just like naming and changing beneficiary designations on your retirement account or life insurance policy, such changes are easy to implement on TOD or POD accounts. All you need to do is complete new paperwork with...

It can take years to settle a decedent’s estate through probate, and the executor usually can’t transfer any of the decedent's assets to his beneficiaries until she has addressed and resolved many other issues. This means that if you intend that your spouse should have access to your checking account after your death, she can’t access the money unless you title the account in a way that avoids probate. Otherwise, it belongs to your estate until your executor settles and closes it, and that could be a long time. Technically, a beneficiary is anyone or any entity who receives property from you after your death. This commonly occurs when property conveys through a last will and testament. You might leave all your property to a group of individuals, such as your children, or you might leave specified items to each person. They’re all your beneficiaries under the terms of your will. Life insurance policies and retirement accounts also have beneficiaries. You can name an individual, such as your spouse, or you can name your estate as your beneficiary in your contracts with these companies and financial institutions. They'll receive these assets when you die. Types of Transfer-on-Death Accounts A transfer-on-death account also has a beneficiary, because it transfers to someone when you die. A transfer-on-death account is one set up by arrangement with your banking institution to pay the balance to someone named by you at the time of your death. If you want to leave your spouse yo...

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations. A person named as a transfer on death (TOD) beneficiary for an account will receive the assets held in it when the account owner dies. It’s possible to name a TOD beneficiary for many account types—retirement accounts, savings accounts, and even brokerage accounts—and this can help you and your heirs avoid the sometimes costly process of The rules are quite broad when it comes to naming TOD beneficiaries. A TOD beneficiary can be a person, charity, business, or trust. If the beneficiary is a person, they can be a relative, child, spouse, friend, or anyone else you happen to know. However, if you are married, your spouse may have special rights over your assets that take precedence over your named TOD beneficiaries. • Naming a transfer on death (TOD) beneficiary for your accounts can make the inheritance process much simpler, because your named beneficiary will automatically receive the assets in the account, thus bypassing probate. • You can name almost anyone as a TOD beneficiary: family, friends, or anyone else. You can also name charities, businesses, or trusts. • Many account types allow you t...