Transfer On Death - TOD

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DEFINITION of 'Transfer On Death - TOD'

A way of designating beneficiaries to receive your assets at the time of your death without having to go through probate. This designation also allows you to specify the percentage of assets each person or entity (your "TOD beneficiary") will receive. Your assets will then be automatically transferred to the designated beneficiaries upon your death.

INVESTOPEDIA EXPLAINS 'Transfer On Death - TOD'

Transfer-on-death is a means of transferring assets without the hassle, delay and cost of probate. If you set up your account or have your securities registered this way, the executor or administrator of your estate won't have to take any action to ensure that your securities transfer to the beneficiaries you have designated.

With TOD registration, you maintain complete control of your assets during your lifetime. Your named beneficiaries have no access to or control over your assets as long as you are alive.

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RELATED FAQS
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    Keeping your beneficiary designations up to date is an important aspect of comprehensive estate planning. Listing a primary ... Read Full Answer >>
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  4. How do you set up a revocable trust?

    A revocable living trust (RLT) is an arrangement in which a grantor transfers ownership of property through a trust. The ... Read Full Answer >>
  5. What types of insurance policies have contingent beneficiaries?

    A contingent beneficiary is a person designated to receive the benefits of an insurance policy or retirement account if the ... Read Full Answer >>
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