TOD versus POD

By Melinda Gustafson Gervasi
A common question raised during my estate planning seminars, is "what is the difference between a TOD and a POD?". Both are forms of non-probate transfers. This means that both establish a distribution plan for an asset upon the owners death. The difference? TODs, which stands for Transfer on Death, attach to brokerage accounts. PODs, which stands for Pay on Death, attach to bank and credit union accounts.

It is always advisable to consult an attorney when creating an estate plan; this post is not meant to be construed as legal advice.

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