Transfer On Death In Estate Planning
Your estate plan is your set of golden rules. It is what you want to achieve in the long term through your build up of wealth. However, it is critical to know how this plan can make changes to your estate at the time of your death. We are not talking about the long-term goals, but the immediate occurrences at the time of your death.
Transfer on death is one of the terms your estate planning team will talk to you about as one of the foundations of your plan. In short, TOD, as it is often referred to, is a designation that helps you streamline the process of transferring your assets to your heirs after your death.
This method is used for a variety of investments, but most often for such things as stocks and bonds, mutual funds, and other types of investment accounts you own at the time of your death. The process of transferring this ownership from you to another person is seamless using this method. The transfer of death designation is a private move, and it is almost automatic when it is part of an estate plan. By using this method, assets transferred in this way avoid the probate process. In fact, the only thing you really need to do is set up a form that outlines the process and you are well on your way to managing this process.
One more advantage to using this method is that it allows the transfer to occur fast enough to ensure that the heir is able to trade those funds or to have access to the funds fast, if it is necessary for that to occur. Imagine the market plummeting—you want your heirs to have access sooner rather than later to preserve that wealth. This tool allows for that.
For those who are facing the inevitable—what will happen at the time of their death—it can be very challenging to know what to do. What should you plan for? What does your family need at this point? What should you provide for and how can you do so? The good news is that you can have a plan. Ian Filippini and the professionals at the Filippini Financial Group can help you determine how to handle the long term aspects of your estate plan.
No advice is given or intended. This article is not to be considered legal advice. Ian Filippini is not an attorney. Filippini Financial Group, Inc. is not a law firm.
Ian Filippini’ was lucky to have grown up in California. Ian Filippini raised by his parents, Alfred Filippini (deceased) and Deborah Filippini, lived in the Montecito or the Santa Barbara area. Ian Filippini has sisters, but his younger brother, Alex Filippini, also worked for Filippini Financial Group, Inc.