Many clients have asked whether Payable On Death (POD) accounts and Transfer On Death (TOD) accounts will have the same effect as a Will. A bank account titled as a POD account with a seignaed beneficiary and a brokerage account titled as a TOD account with a designated beneficiary will be paid to the designated beneficiary regardless of the terms of the Will.
A POD is a bank account that enables an account owner to designate one or more beneficiaries who will receive the funds of the bank account at the account owner’s death. A TOD account is a securites account that enables an account owner to designate one or more beneficies who will receive the assets of the account at the account owner’s death.
Therefore, it is important in estate planning to look at all your holdings and determine whether the arrangement meets with your intent. We help you make sure that uninteded consequences do not happen to your family. Contact us at www.ythlaw.com