I’m not referring to the Bill Murray character in the famous SNL “The Nerds” skit.
I’m talking about Transfer on Death.
The transfer on death designation means the owner of bank or investment accounts has designated beneficiaries in their account. The beneficiaries have no access to the assets until the owner passes. However, at the time of death, the beneficiary will receive the assets without having to go to probate. This will save an enormous amount of time, and possibly lawyers fees.
This designation also lets the account holder or security owner specify the percentage of assets each designated beneficiary receives, which helps the executor distribute the person’s assets after death.
Again, with TOD designation, the named beneficiaries have no access to or control over a person’s assets as long as the person is alive.
My father in law’s checking account and brokerage accounts had my wife and her brother as beneficiaries. It made handling his estate relatively easy.
Ask a Trust and Estate Attorney about using TOD’s to your advantage. Of course, you can also reach out to me if you’d like a referral to a want to a Trust and Estate Attorney.
Do you have a Transfer on Death designation in place?