Forbes: The 4 Pitfalls Of ‘Designated Beneficiaries’ On Transfer On Death Investment Accounts (July 2, 2021)

Forbes has published an article, “The 4 Pitfalls Of ‘Designated Beneficiaries’ On Transfer On Death Investment Accounts”, which discusses issues that may arise when using a Transfer on Death (TOD) account titling. The article begins as follows:

When you set up an account to “transfer on death,” the assets will go directly to beneficiaries upon the owner’s death. While these assignments can help avoid probate, this account titling should still be carefully coordinated with the owner’s overall estate plan, especially for larger accounts and estates.

While simply titling an account “Transfer on Death” and adding a beneficiary or two may seem common sense, it may not always be so simple. This type of account can easily be set up on most investment accounts. The main benefit to these types of accounts is that assets can be transferred relatively quickly to a beneficiary, and the costly and timely process of probating the assets is avoided. Another advantage is beneficiaries can be changed more easily than amending a trust, for example.

Click here to see the full article: “The 4 Pitfalls Of ‘Designated Beneficiaries’ On Transfer On Death Investment Accounts”

Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.

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