Tod
Explore how transfer-on-death designations work, how they compare to trusts, and what families need to know about TOD accounts and estate planning.
What's the difference between a TOD designation and a living trust?
A transfer-on-death designation lets a specific account or asset pass directly to a named beneficiary without probate, but it only covers that one asset. A revocable living trust, by contrast, can hold many different assets under one document, keeping your entire estate organized and out of probate court. TOD designations also offer no protection if a beneficiary is a minor, has special needs, or passes away before you do — situations a trust can address with more flexibility. Many families use both: a trust for the bulk of their estate and TOD designations as a backup layer on certain financial accounts.
