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.

BREAKING DOWN '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
  1. How do you mediate a dispute between primary and contingent beneficiaries of a trust?

    There may be a dispute between beneficiaries whenever the proceeds of a trust or other transfer on death (TOD) account are ... Read Full Answer >>
  2. Can I put my IRA in a trust?

    You cannot put your IRA in a trust while you are living. You can, however, name a trust as the beneficiary of your IRA and ... Read Full Answer >>
  3. How does the trust maker transfer funds into a revocable trust?

    Once a revocable trust is created, a trust maker transfers funds or property into the trust by including them in a list with ... Read Full Answer >>
  4. What is the difference between a revocable trust and a living trust?

    A revocable trust and living trust are separate terms that describe the same thing: a trust in which the terms can be changed ... Read Full Answer >>
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