Houston Estate Planning and Elder Law Attorney Blog
At McCulloch & Miller, we believe that every client’s estate plan should make things as easy as possible both for our client and for their loved ones. One tool that we often use to simplify estate planning is the payable-on-death designation or the transfer-on-death designation. These mechanisms are known for helping decedents’ beneficiaries access their loved ones’ assets quickly, efficiently, and privately.
Payable-on-Death v. Transfer-on-Death
Both the POD and the TOD are ways of titling assets, and they indicate that the asset should be transferred to the named beneficiary immediately upon the asset owner’s death. What is the difference between the two types of accounts? POD designations typically apply to bank accounts, and TOD designations typically apply to investment accounts. They both share the commonality that when the owner dies, the accounts go directly to the owner’s named beneficiary, bypassing probate. While the named beneficiary may have to provide a copy of the decedent’s death certificate, there is very little work that must be done to access the account, especially relative to the time-intensive probate process.
Key Benefits of the POD and TOD
The major benefit of these designations is that they allow the beneficiary to bypass probate altogether. This in turn saves time and money, and it allows the transfer to happen without anything going into the court’s public record. It also simplifies the process for everyone involved. As soon as the account owner names the beneficiary, he or she can trust that the assets will get into that person’s hands without that person having to face any major hurdles down the line.
If you think one of these kinds of accounts might be right for you, speak with a Houston estate planning attorney that you can trust. Not all assets can be titled using a POD or TOD, so you will have to strategize with your attorney in the context of your entire estate plan. With the right legal team by your side, you can make sure your plan fits your needs and goals so that you can protect your loved ones long after you are gone.
Do You Have a Houston Estate Planning Attorney by Your Side?
At McCulloch & Miller, we have three decades of experience making sure our clients’ assets are well-protected in their estate plans. As advocates for aging Americans, we pride ourselves in integrating traditional estate planning services with a broader and more holistic approach to planning. If you do not yet have a Houston estate planning attorney in your corner, consider our legal team. We provide detail-oriented, client-centered representation, and our clients trust us to deliver results for them and their families.
If you would like to set up a call with one of our Houston estate planning attorneys at McCulloch & Miller, give us a call at 713-936-9073. You can also fill out our online form to tell us about yourself and have a member of our team contact you as soon as possible regarding next steps. Our firm covers estate planning, probate administration, elder law, special needs planning, public benefits planning, and more.