Avoiding probate is a very real concern for people who want to make sure certain assets such as stocks, bonds, brokerage and bank accounts automatically pass to their heirs upon their death. In such a scenario, Transfer on Death Agreements (also known as TOD's) can be a very useful and convenient estate planning tool in making sure your loved ones are financially taken care of in your absence.
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Essentially, Transfer on Death Agreements allow you to pass ownership of your accounts directly to a beneficiary of your choosing when death occurs. Without such designations, each account would have to go through the probate court before it can be distributed to your desired heirs.
