Payable on Death (POD) Accounts and
Transfer on Death (TOD)
A Payable on Death (POD) Account is a bank account with a named beneficiary. These accounts are also known as Totten Trusts. A POD account is an arrangement between a bank or other savings institution and an account owner in which a named beneficiary inherits the funds upon the death of the account owner. A POD account is an alternative to leaving funds to someone by means of a revocable living trust or will.
A Transfer on Death (TOD) Designation permits an account holder to pass assets from brokerage accounts, stocks, and bonds at their death, without the assets going through probate. The law permits the assets to be allocated with percentage allocations to more than one beneficiary.
Retirement accounts such as Individual Retirement Accounts (lRAs) and 401ks cannot be transferred as TOD accounts. These accounts allow named beneficiaries with regulations establishing when the beneficiary can make withdrawals.
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