{"id":617,"date":"2011-02-01T20:12:24","date_gmt":"2011-02-02T01:12:24","guid":{"rendered":"https:\/\/blog.bradpine.com\/?p=617"},"modified":"2011-05-13T12:46:14","modified_gmt":"2011-05-13T16:46:14","slug":"building-an-estate-planning-toolkit-the-transfer-on-death-designation-tod","status":"publish","type":"post","link":"https:\/\/blog.bradpine.com\/2011\/02\/01\/building-an-estate-planning-toolkit-the-transfer-on-death-designation-tod\/","title":{"rendered":"Building an Estate Planning Toolkit: The Transfer on Death Designation – TOD"},"content":{"rendered":"

\"\"<\/a>In addition to wills and trusts, there are many tools available to you in developing an estate plan. While different tools are appropriate for different asset classes, family structures, and goals, it is important to know about the possibilities. \u00a0In this article, I\u2019ll focus on the Transfer on Death, or TOD, designation, which can help streamline the process of transferring assets to your heirs.<\/p>\n

Generally used for stocks, bonds, mutual funds, or investment accounts, the TOD provides for the seamless transfer of assets to a designated recipient, either an individual or an entity, at the time of your death. Like a trust, the TOD designation is private and nearly automatic, helping your heirs avoid the cost and often time-consuming process of probate. A TOD is also very simple to set up: it\u2019s as easy as signing a form supplied by the institution holding your securities.<\/p>\n

Using a TOD to speed up the transfer of assets to your heirs is not only useful for avoiding probate. It also allows your recipient to trade the account or access funds quickly if it becomes necessary. In addition, a TOD designation is much harder to challenge than a will, helping you to ensure that your assets go to the individual or entity, such as a charity, that you designate. In some states, TOD accounts or assets are even excluded from rules that govern the amount you can leave to charity or your spouse. These exceptions can help tailor the estate planning process for those with unique needs, family structures, or preferences. Finally, it is important to note that the TOD is fully reversible; you can change or remove the designation at any time prior to your death, in almost all cases without cost.<\/p>\n

As with any estate planning tool, there are several key points to keep in mind when it comes to the TOD designation. First, TODs can generally only be used for investable assets, such as stocks, bonds, mutual funds, or securities trading accounts. Additionally, some states do not permit TOD designations at all, while others allow you to transfer additional assets, such as real estate, to your intended transferee. Given the variation in regulations among states, it is important to understand which rules apply to your individual situation before considering a TOD.<\/p>\n

Secondly, remember that the TOD will not reduce your estate tax burden or other fees arising at death, so it is not an appropriate tool for reducing those costs. Also, creditors can still pursue TOD assets to settle any outstanding debts at the time of your death. Both of these issues should be considered as you craft an estate plan, as a bit of planning can help you to avoid additional pain and confusion later on.<\/p>\n

Used alone or in conjunction with a trust or will, the TOD can be a powerful tool in your estate planning toolkit by speeding up and simplifying the transfer of assets to your heirs. As with any estate planning tool, it is important to ensure that a TOD is the right solution for your particular situation, so I recommend consulting with an experienced professional prior to setting up a TOD designation.<\/p>\n

New to estate planning? Read\u00a0my introductory article\u00a0to estate planning basics<\/a>. For more information about TOD designations, I recommend this guide to TODs as a will substitute.<\/a> Would you like to learn more about other estate planning tools? Check out\u00a0the\u00a0guide to Common Types of Will Substitutes<\/a>, which includes information on trusts, TODs, and several other tools.<\/p>\n

If you are seeking detailed\u00a0information about rolling over your 401(k) or about managing your IRA, I highly suggest downloading my free eBook, \u201c10 Tips You Need to Know About Your IRA Rollover\u201d. <\/a>This short book is packed with critical information that will help you make the right decisions about your retirement savings.<\/p>\n","protected":false},"excerpt":{"rendered":"

In addition to wills and trusts, there are many tools available to you in developing an estate plan. While different tools are appropriate for different asset classes, family structures, and goals, it is important to know about the possibilities. \u00a0In this article, I\u2019ll focus on the Transfer on Death, or TOD, designation, which can help […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[32],"tags":[42,1138,7,47,1141,36,20,12,11,44,14,30,15,46,26,58,57,10],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2p1nA-9X","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":678,"url":"https:\/\/blog.bradpine.com\/2011\/03\/16\/theres-still-time-to-contribute-to-an-ira-for-2010\/","url_meta":{"origin":617,"position":0},"title":"There’s Still Time to Contribute to an IRA for 2010","author":"Bradford Pine","date":"March 16, 2011","format":false,"excerpt":"\ufeff There's still time to make a regular IRA contribution for 2010! You have until your tax return due date (not including extensions) to contribute up to $5,000 for 2010 ($6,000 if you were age 50 by December 31, 2010). Normally, your tax return must be filed by April 15.\u2026","rel":"","context":"In "Retirement Planning"","block_context":{"text":"Retirement Planning","link":"https:\/\/blog.bradpine.com\/category\/retirement-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":846,"url":"https:\/\/blog.bradpine.com\/2011\/06\/01\/powerful-steps-for-any-investor-from-ira-rollovers-to-financial-planning\/","url_meta":{"origin":617,"position":1},"title":"Powerful Steps for Any Investor: From IRA Rollovers to Financial Planning","author":"Bradford Pine","date":"June 1, 2011","format":false,"excerpt":"Congratulations! By reading this article you\u2019re taking an important step in your financial life, one that your future self will probably thank you for in twenty years. In helping clients, I\u2019ve found that there are many unique issues that people face every day, but there are also a lot of\u2026","rel":"","context":"In "Individual Investors"","block_context":{"text":"Individual Investors","link":"https:\/\/blog.bradpine.com\/category\/individual-investors\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2011\/06\/Powerful-steps.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":598,"url":"https:\/\/blog.bradpine.com\/2011\/01\/25\/summarization-of-the-health-insurance-reforms-scheduled-to-take-effect-in-2011\/","url_meta":{"origin":617,"position":2},"title":"Summarization of the Health Insurance Reforms Scheduled to Take Effect in 2011","author":"Bradford Pine","date":"January 25, 2011","format":false,"excerpt":"Summarization of the Health Insurance Reforms Scheduled to Take Effect in 2011 The Patient Protection and Affordable Care Act (PPACA), signed into law in 2010, makes significant changes to our health care delivery system. Some of these reforms took effect in 2010 while many others take place in 2011. The\u2026","rel":"","context":"In "Health Insurance Reform"","block_context":{"text":"Health Insurance Reform","link":"https:\/\/blog.bradpine.com\/category\/health-insurance-reform-2\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":467,"url":"https:\/\/blog.bradpine.com\/2010\/11\/30\/estate-planning-a-key-part-of-any-financial-strategy\/","url_meta":{"origin":617,"position":3},"title":"Estate Planning: A Key Part of Any Financial Strategy","author":"Bradford Pine","date":"November 30, 2010","format":false,"excerpt":"I sometimes hear from clients that estate planning sounds like something that only the very rich need to think about. This couldn\u2019t be further from the truth. In reality, an estate plan is, at its most basic, a critical part of ensuring that your wishes are carried out should you\u2026","rel":"","context":"In "Estate Planning"","block_context":{"text":"Estate Planning","link":"https:\/\/blog.bradpine.com\/category\/estate-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2635,"url":"https:\/\/blog.bradpine.com\/2017\/04\/04\/an-overlooked-estate-planning-tool-if-you-dont-have-a-trust-the-life-estate\/","url_meta":{"origin":617,"position":4},"title":"An Overlooked Estate Planning Tool if You Don\u2019t Have a Trust: The Life Estate","author":"Bradford Pine","date":"April 4, 2017","format":false,"excerpt":"In my experience, most people remember to do basic estate planning tasks like adding beneficiaries or a Transfer on Death designation to important financial assets. But what about your home? Just designating a beneficiary in your will or assuming the home will pass to your children could create problems for\u2026","rel":"","context":"In "Estate Planning"","block_context":{"text":"Estate Planning","link":"https:\/\/blog.bradpine.com\/category\/estate-planning\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.bradpine.com\/wp-content\/uploads\/2017\/04\/1-house-inherited-Bradford-Pine-Wealth-Group-Garden-City-NY.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":509,"url":"https:\/\/blog.bradpine.com\/2010\/12\/22\/the-new-estate-tax-rules-your-plan-for-2011\/","url_meta":{"origin":617,"position":5},"title":"The New Estate Tax Rules: Your Plan for 2011","author":"Bradford Pine","date":"December 22, 2010","format":false,"excerpt":"Congress approved a new Estate Tax law last Thursday, December 17 2010 after nearly a year of speculation about its future. The new rules provide for a $5 million dollar exemption with a top tax-rate of 35%. This is obviously a far cry from the $1 million dollar exemption and\u2026","rel":"","context":"In "Estate Planning"","block_context":{"text":"Estate Planning","link":"https:\/\/blog.bradpine.com\/category\/estate-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts\/617"}],"collection":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/comments?post=617"}],"version-history":[{"count":0,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/posts\/617\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/media?parent=617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/categories?post=617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.bradpine.com\/wp-json\/wp\/v2\/tags?post=617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}