Transfer on Death Agreement
When preparing an estate plan, one important tool to consider is a transfer on death (TOD) agreement. This document allows you to designate beneficiaries who will receive specific assets or property upon your death.
A TOD agreement is a legal document that is similar to a will, but it avoids the time and expense of probate court. Probate is the legal process of administering a deceased person`s estate, which can be time-consuming and costly. By using a TOD agreement, you can ensure that your assets are transferred directly to your beneficiaries without the need for probate.
TOD agreements can be used for a variety of assets, including bank accounts, investment accounts, real estate, and personal property. To create a TOD agreement, you will need to provide the name and contact information of each beneficiary, as well as a description of the assets you wish to transfer.
It is important to keep your TOD agreement up to date as life circumstances and assets change. For example, if you sell a property or open a new bank account, you will need to update your TOD agreement to reflect those changes.
When creating a TOD agreement, it is important to seek the guidance of a qualified estate planning attorney. They can help you ensure that your TOD agreement is legally valid and that it aligns with your overall estate plan.
In conclusion, a transfer on death agreement is a valuable tool for anyone who wants to simplify their estate plan and reduce the burden of probate. By designating beneficiaries for specific assets, you can ensure that your wishes are met and your loved ones are provided for after your passing. Speak to an attorney to learn more about TOD agreements and how they can fit into your overall estate plan.
