• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Wilcox Attorneys, PA

Wilcox Attorneys, PA an Arkansas Estate Planning & Trust Information Center

Northwest Arkansas Estate Planning Attorneys (479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Secure Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Probate
      • Trust Administration & Probate
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

Using POD and TOD Accounts in Estate Planning

April 27, 2015 by Deb Sexton Leave a Comment

POD and TOD accountsMany clients are concerned with avoiding probate, whether it’s because of the expense or the time delays that probate causes.  It is not very difficult to avoid probate, if you take just a few steps to make sure your property will pass on to your heirs without going through the courts.  One of the easiest ways to accomplish this is by designating your beneficiaries for certain types of accounts.  Using POD and TOD accounts in estate planning is simple.

Why should I avoid probate?

Many people try to avoid probate as much as possible because the process can be very time-consuming and, depending on the nature of your estate, the process can also be very complicated.  The entire probate proceeding, from beginning to end, can take months or even years to conclude. Having a will can shorten that time because the administrator and heirs are identified in the will and the court will not have to make those determinations. Nevertheless, the process is still lengthy, as there are so many transactions that must be completed.

Definition of a POD Account

The acronym “POD” stands for “payable-on-death,” which means that the funds in the account are “payable on death” to the beneficiary named on the account.  This simple tool is a very efficient method for avoiding the probate process.  POD accounts typically include bank accounts. All that is needed to create these types of accounts is usually completing a simple form that identifies the individual(s) you want to inherit the funds in the account after your death.

How do POD accounts work?

With a POD Account, your named beneficiary will go to the bank where the account is held, and provide two things: identification and proof of your death.  It is that simple.  Your beneficiary can collect all of the funds that remain in the account, without any need for court involvement.  A benefit of a POD account is that, while you are still alive, you always maintain complete control over the account.  Your beneficiary will have no right to access the account until after your death.

Transfer-on-Death Properties

Transfer-on-death, or TOD, properties are similar to POD accounts, in that the asset is given to your beneficiary automatically, upon your death.  In some states, car owners have the option of naming a beneficiary on their certificate of registration.  That person will then inherit the vehicle automatically upon your death. However, until that time, you remain free to sell or give away the car.  You can also name someone else as the beneficiary, if you choose.

Also, some states, including Arkansas, allow individuals to prepare a “transfer-on-death” or “beneficiary” deed, which does not take effect until that person’s death. These types of deeds must be prepared, signed, notarized and recorded, like any other deed. The deed expressly indicates that it does not become effective until death. However, unlike a regular deed, you can revoke a transfer-on-death deed at any time.

Transfer-on-Death Securities

TOD securities allow you to name an individual to inherit your securities, such as stocks and bonds, without the need for going through probate. When you purchase securities, you are required to register your ownership. When you register the stock, you can also request a beneficiary form. Like with POD accounts, the beneficiary will not have any rights to the stock as long are you are still alive.

If you have questions regarding TOD or POD accounts, or any other probate matters, please contact Wilcox Attorneys, PA online or by calling us at (479) 443-0062.

  • Author
  • Recent Posts
Deb Sexton
Latest posts by Deb Sexton (see all)
  • Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
  • Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
  • The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wilcox Attorneys, PA

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Subscribe to our blog for all the latest estate planning news and updates!

Office Address

Fayetteville
2766 Millennium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

( By Appointment Only )

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2023 American Academy of Estate Planning Attorneys, Inc.