What Does Payable On Death Account and Totten Trust Mean In Estate Planning?
A bank account that will automatically transfer to a named beneficiary. This is often, but not always, designated by a “TOD” (transfer on death), “ITF” (in trust for), “ATF” (as trustee for), or “POD” (payable on death) in the title of the account. These accounts will pass outside of a will and other estate planning documents. Beware: If you add someone to an account to help you manage your financial affairs, that account will automatically transfer to them at your death. This will happen whether you intended it to or not.
Example Of Payable On Death In Regards To Estate Planning
My dad didn’t know that by making his investment account a POD (Payable on Death) account that he was leaving the entire thing to my cousin. He just wanted some help with investments and didn’t want my cousin to inherit all that money.