One of the simplest ways to transfer your assets to another party after your passing is to set up a transfer-on-death (TOD) account. This option allows designated beneficiaries to receive such assets as bank accounts or investment portfolios without going through probate.
The process of naming transfer-on-death account beneficiaries does not seem complicated at first, but consulting a Coral Gables attorney about TODs can help you make sure they will work as you planned.
Transfer-on-death allows an asset holder to name a beneficiary who will automatically receive these assets upon the owner’s death. The transfer occurs upon the owner’s passing without probate and takes precedence over anything listed in a Will. Some of the common assets that can be transferred by TOD are:
While this option of transferring assets is more efficient than a Will, it does not remove any outstanding debts. If the owner had debts before passing, the assets transferred with a TOD could be used to cover them.
For potential clients in Coral Gables or elsewhere in Florida, transfer-on-death account beneficiaries can be anyone from family members to entities. The common beneficiaries tend to be spouses, children, and friends. However, some asset owners choose to name charitable organizations or non-profits as the new account holders. It is also possible to name a trust established as a part of the estate plan as the beneficiary.
The key advantage of using a TOD is avoiding probate. All beneficiaries can receive the inheritance quickly upon the owner’s passing, and since TOD is not a part of the public probate record, the transaction can remain private. Meanwhile, the asset owner has the right to change the beneficiaries at any point in their lifetime without involving the court.
A TOD is not a solution for every estate. One major downside of such an option is that TOD designations do not account for contingencies. If the beneficiary dies before the asset holder, the asset may still end up in probate. TODs also do not provide asset protection or guidance for complex estate needs. For example, they are not effective for asset distribution among multiple heirs with special conditions.
One of the simplest ways for a person in Coral Gables to name a transfer-on-death account beneficiary is to contact the account provider. However, not all assets can be transferred quickly and easily. To make sure the process is smooth, the owner should consider working with a reliable estate planning attorney.
A TOD can only be effective if it is created properly; otherwise, the beneficiaries can face difficulties claiming transferred assets. Veliz & Associates, P.A. can help you understand whether a TOD is a good option or if you should consider other opportunities.
While the process of naming transfer-on-death account beneficiaries in Coral Gables may not be complicated, there are several important factors to review. An experienced attorney can help you understand whether a TOD is the right option for your estate. They can also guide you through the designation process to make sure TODs work as you want them to.
Veliz & Associates, P.A. has helped hundreds of local clients with estate planning nuances, and you can call us to schedule a consultation today.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917