Beautiful Designated Bene Plan Tod picture

Designated Bene Plan Tod. This a special type of account that's recognized under some states' laws and it's exactly what the name indicates: The account transfers to another individual or individuals by operation of the law so it doesn't require the probate court process. At the time of publication, only Texas, Louisiana and Puerto Rico do not recognize the TOD account designation.

A beneficiary named on a TOD account has no legal rights until. Client has a Designated Bene Plan/TOD account with Charles Schwab. For example, you need to know the difference between a primary, alternate, life estate, final and residuary beneficiary and their use and limitations.

If the decedent's Last Will doesn't rely on TOD account planning, and the account lacks a beneficiary, then state law will dictate distribution of the estate, including that TOD account.

When used, a TOD designation "transfers" the ownership of an asset to a beneficiary.

So naming a TOD beneficiary while both joint owners are alive doesn't guarantee that that beneficiary will ultimately inherit the securities. Transfer on death (TOD) accounts can keep your estate planning intact while keeping your beneficiaries out of court. An unmarried person may choose anyone as a beneficiary, but a married person's spouse may have rights to some or all.

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