3 Types Of Accounts That You Can Transfer On Death

When planning for your eventual death, there are lots of steps that you can take to make that process easier for your loved ones. One of the things that you can do is set up transfers-on-death or TOD for a variety of different types of properties and investments. Three types of accounts that you can transfer on death include securities, motor vehicles, and real estate.

Securities

One of the first things that you can transfer are stocks, bonds, and securities. All but two states allow you to use TOD for these types of investments. Most states have adopted the Uniform Transfer-on-Death Securities Registration Act, which allows you to transfer not just securities upon your death, but stocks and bonds as well.

The important thing to remember with this is that you have to transfer each individual security, stock, and bond that you own. If you have a lot of investments, that may mean that you are going to have to do fill multiple forms in order to ensure that all of your investments are passed on to the right person.

Motor Vehicles

Second, many states allow you to set up TOD for any motor vehicle that you have registered with your Secretary of State or Department of Motor Vehicle. In certain states, you can fill out a form that will make someone the beneficiary of your vehicle when you pass away.

This provision is not as widely adopted as the TOD for securities. Check with your state and see if that is an option. If it is not an option, you may be to set up joint ownership right now for your vehicles.

Real Estate

A wide number of states allow you to set up TOD for your real estate. You will want to work with an attorney through this process. You can set up a document so ownership will be transfer to a specific person upon your death. If this is not an option for you, see about putting your real estate in a trust or consider joint ownership of your real estate. If you decide to set up joint ownership, be sure to consider the legal and financial repercussions of that ownership for your kin.

As you plan for your estate, consider if you want to set up TOD for any of your investments or property. This can be a smart way to avoid probate and make it easier for your intended inheritance to get the property you want them to have. Work with an estate attorney, such as from Cooper Levenson Attorneys At Law , to set up all of your TOD or come up with alternative plans for any property that a TOD will not work for.

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