Estate Planning with POD and TOD Accounts
A comprehensive estate planning
process can accomplish several different goals. You can safeguard your family’s future, ensure you have enough assets to retire comfortably, plan for incapacity, and arrange it so your estate does not have to pass through probate. Just as no two people are alike, every estate is different and made up of a variety of legal documents.
Whether you want to avoid taxes, make your estate more liquid, or avoid probate, payable on death (POD) and transfer on death (TOD) accounts can help you achieve your goals.
Payable on Death Accounts
In most cases, POD accounts are used to transfer money, such as funds in a bank account. When you designate a financial account as POD, you direct the funds to be paid directly to a named beneficiary...