A person named as a transfer on death (TOD) beneficiary for an account will receive the assets held in it when the account owner(s) 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 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 to name a TOD beneficiary. You can add a TOD beneficiary to retirement accounts, certificates of deposit (CDs), and brokerage accounts.
Payable on death (POD). By placing a POD designation on your bank account or certificate of deposit, you can name one or more persons or charities as the beneficiary of all funds once you, the account owner, pass away. The beneficiary you name has no rights to the funds until after your lifetime. Until then, you remain in control and are free to use the money in the bank account, change the beneficiary, or close the account.
Similar to TODs, the estate planning and administration process are simplified by setting up your bank account or certificate of deposit in this same method (referred to as “Payable On Death” or POD). The executor or administrator of your estate will not have to take any action to ensure that your account transfers to whomever you designated. Ask your bank representative about the one or two easy steps you need to take to place a POD designation on your bank account or certificate of deposit.
Conclusion
You have made a lasting gift to our mission. Let us show you our ultimate gratitude. Our Legacy Society is one way we thank you for your generous decision. There are many types of planned gifts. Please let us know if you have created a planned gift for our organization.