
Pay-on-death (POD) or transfer-on-death (TOD) accounts are tools used in the estate-planning process to provide for streamlined administration and avoid probate proceedings on the account owner’s death (POD and TOD are referred to collectively for simplicity as POD accounts).1 POD statutes allow the account owner to implement a POD registration but don’t require it.
Though POD accounts aren’t difficult to implement, when clients use these accounts, advisors should carefully consider the overall planning, including the estate plan, to address all goals and avoid unintended consequences. While POD accounts can provide for a smooth transition to a named beneficiary on the account owner’s death, they can often result in a disproportionate o...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?