Transfer on Death (TOD) Designation: Will Substitutes
Definition
By making a transfer on death (TOD) designation for securities (like individual stocks and bonds, mutual funds, or trading accounts), you will transfer ownership of those securities immediately at your death to the person you designated.
Prerequisites
- You want to avoid the expense, delay, and disruption of probate
- You live in a state that authorizes transfer on death designations
Key Strengths
- Avoids expense and delay of probate
Key Tradeoffs
- Does not avoid estate taxes
- Only passes assets registered as TOD outside of probate
Variations from State to State
- Not available in all states
How Difficult Is It to Implement?
- Simple and inexpensive to create
If you have any questions, please do not hesitate to contact me at dkdowell@dkdcpa.com
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