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A POD accounts stands for \u201cpayable on death\u201d and is usually used with bank accounts such as checking, savings or Certificates of Deposit. TOD are \u201ctransfer on death\u201d accounts and are usually used with brokerage accounts, stocks, bonds and other investments.
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.
A transfer on death (TOD) account is a type of beneficiary designation that names recipient beneficiaries to receive the assets of the account at the time of the account holder's death, without the assets going through probate.
Paying for a TOD deed could be a complete waste of money. ... TOD deeds put private estate planning in the public eye. ... TOD deeds don't completely avoid probate. ... For most folks, TOD deeds don't offer significant tax benefits. ... TOD deeds can complicate future estate planning.
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