09/28/2025
đĄ Letâs Break This Down: Why TOD/POD Is a Game-Changer
When people pass away, their money doesnât automatically go to their loved onesâeven if they wrote a will. If your bank, retirement, or investment accounts donât have TOD (Transfer on Death) or POD (Payable on Death) designations, the money can get stuck in probate court.
⢠Probate = delays, legal fees, stress, and family arguments.
⢠TOD/POD = your money goes directly to your chosen loved onesâno judge, no red tape, no waiting.
This one step can literally save your family months or even years of financial frustration.
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How to Set Up TOD/POD Designations
1. Contact your bank, credit union, or financial institution.
Ask for a âTransfer on Deathâ (investment/retirement) or âPayable on Deathâ (bank account) form.
2. Choose your beneficiaries wisely.
⢠Name one or multiple beneficiaries.
⢠Add percentages if you want funds split (ex: 50/50 between two children).
⢠Always add a contingent beneficiary (a backup if the first person passes before you).
3. Keep it consistent.
Make sure your will matches your TOD/POD. If thereâs a conflict, the beneficiary form rulesâNOT the will.
4. Review every few years.
Life changesâdivorce, marriage, new baby, falling out, etc. Update your designations regularly.
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âď¸ Real-Life Example
Imagine you pass away with $50,000 in a savings account.
⢠Without TOD/POD â The account freezes. Your kids wait a year in probate while the court decides, and lawyer fees cut into that $50K.
⢠With TOD/POD â The money is in their hands in a few weeks. No court. No hassle.
Thatâs the difference between your family struggling and your family thriving.
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đ Other Things to Remember
⢠Life Insurance & Retirement Accounts: Always keep your beneficiaries updated.
⢠Real Estate: Some states allow a âTransfer on Death Deedâ so your home avoids probate too.
⢠Communication: Donât just fill out the paperworkâmake sure your family knows where everything is.
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