What do POD and TOD mean?
POD stands for Payable on Death and TOD stands for Transfer on Death. By making your checking, savings, CD's and non-IRA investment accounts POD or TOD, they will not go through probate. You make your accounts POD or TOD by filling out a form at your bank, credit union or investment company. Accounts that pass to your children POD or TOD will not be subject to your creditor claims such as doctors and hospitals.
Attorney Tom Olsen: Eddie you're on news 965 go ahead.
Eddie: Yes, good morning. I heard the term last week on one of the law shows on the radio is TOD.
Attorney Tom Olsen: Okay.
Eddie: If you could put the work with the letters.
Attorney Tom Olsen: TOD stands for Transfer on Death; it is the same thing as POD, payable on death. Eddie what we're saying is, if you have a checking, savings, cds, investment non IRA accounts, you can own those accounts in your name only and make them TOD for your children or POD for your children. Eddie, if you do that and you pass away, the only thing your children will need to do is to show the bank or credit union your death certificate and they will turn the money over to them no probate required, so making your account POD or TOD for your kids is a great way to avoid probate.
Eddie: Is that just a standard form?
Attorney Tom Olsen: So Eddie to make your account TOD, transfer on death, you do not do as me, you do not do it in your will, you do it at the bank or the credit union. They will give you the forms to fill out. Now here's another advantage making your accounts TOD, if your accounts are not TOD and they go through probate, they are subject to your creditor planes, doctors hospitals, credit cards you name it. If you make your account TOD they go straight to your kids and they are not subject to creditor claims. In addition to avoiding probate, you can avoid creditor claims when making your accounts TOD, transfer on death to your kids.
Hey Eddie that's a great question, that is something that we definitely cover at our wills and easy ways to avoid probate workshop next Thursday, you want to come to our workshop next Thursday on wills and easy ways to avoid probate? It is Thursday 11:45 and you can start by calling or texting Chrissy 407-808-8398. Again you want to come to our wills and easy ways to avoid probate workshop next Thursday or just find out when our upcoming workshops are, starts by calling or texting Chrissy 407-808-8398.
Everybody thanks so much for all your great calls and questions, we do so much appreciate. If I may, a suggestion for you what doors and take pleasure in the beauty of nature and as always enjoy your friends and family. My name is Tom Olsen the name of the show is Olsen on Law