PEACE OF MIND
Do you know which of your accounts have beneficiary designations, sometimes called transfer-on-death (TOD) or payable-on-death (POD) designations? Have you updated them recently? Are you aware of what can go wrong if there are issues with your beneficiary designation forms? If you answered “no” to any of these questions, it may be time to review your beneficiary, TOD, and POD designations and confirm that everything is accurate, complete, and current. Accounts and property with beneficiary, TOD, or POD designations take precedence over your Will or living trust, so keeping forms updated is crucial.
Beneficiary, TOD and POD designations are made using legal forms that specify who will receive the asset (e.g., accounts, property, death benefits, etc.) after the original owner dies. Such designations allow you to pass assets directly to your beneficiaries and avoid probate.
