Transfer on Death Train Wreck

Shot of a consultant going through paperwork during a meeting with a senior woman at home

Transfer-on-death (TOD) designations are a wonderful thing. They can help avoid probate and speed the transfer of assets on death. However, there are traps for the unwary. That is, often the account holder will not tell you that if a TOD beneficiary predeceases the owner, then the surviving TOD beneficiaries will receive the predeceased beneficiary’s share.

For instance, assume you have two children, Jack and Jane. Additionally, assume Jack and Jane have children. If you name Jack and Jane as TOD beneficiaries and Jack predeceases then you have disinherited Jack's children because Jane will receive Jack's share. This train wreck can be avoided with proper estate planning.

Contact Middleton Law Offices today at 419.548.0196 for a consultation to learn how we can help.

Categories: Estate Planning