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What Is the Difference Between TOD and Beneficiary? A transfer on death is an instrument that transfers ownership of specific accounts and assets to someone. A beneficiary is someone that is named to receive something of value.
Do assets in a TOD account receive a step up (or step down) in cost basis when the account owner dies? Yes. Securities held in TOD accounts receive a new cost basis as of the account owners date of death using the same income tax rules that apply at the death of an individual.
In June of 2014, our state adopted a new law allowing for transfer-on-death (TOD) deeds, known as the Washington Uniform Real Property Transfer On Death Act or Act.
Disadvantages of a Transfer on Death Deed For example, your property will be subject to probate court if your beneficiary predeceases you and you lack an alternate estate plan. Another disadvantage is if you co-own property under a joint tenancy.
Your beneficiaries will not be required to pay income tax on the amount they receive through a TOD account, but may be required to pay income taxes on any interests and dividends produced by that account during the following year.
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Disadvantages of a Transfer on Death Deed For example, your property will be subject to probate court if your beneficiary predeceases you and you lack an alternate estate plan. Another disadvantage is if you co-own property under a joint tenancy.
The primary advantage of a transfer on death deed is to avoid the probate process. If a property owner has executed a transfer on death deed, then as soon as the property owner dies, that property passes to the person named. The beneficiary does not have to go to court.
The order is: the surviving spouse, children, parents, siblings, grandchildren and nieces and nephews. RCW 11.28. 120.
Washington recently adopted a new form of transferring real property (i.e., land and real estate) called the Transfer on Death Deed (also known as a beneficiary deed). Ch. 64.80 RCW.
Disadvantages of a Transfer on Death Deed For example, your property will be subject to probate court if your beneficiary predeceases you and you lack an alternate estate plan. Another disadvantage is if you co-own property under a joint tenancy.

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