What is a TOD?

This month, my father passed away. Since then, I've learned a lot about titles and transferring assets. This isn't legal advice; remember, this is a free newsletter from somebody you probably met on Facebook.

First, let's talk about TOD (transfer on death). This is an easy way to make sure that trucks, trailers, ATVs, boats, or any asset with a free-and-clear title go to the people you want. Some states have stricter probate laws than others. For example, I live in Missouri, and my father had assets in Arkansas. For the things that had a TOD, it was easy to take over ownership. My father's Ford F-250 truck did not have a TOD. The state of Missouri said we would have to go through probate. Since it was titled in Arkansas and I am his only biological child, I was able to fill out one paper and pay $11.00 to get it titled into my name. I had to go to a DMV in Arkansas to do this.

Probate can be time-consuming and expensive!

If I were you, I would make sure all your assets are in one area, and they all have TODs on them. I think you should also make copies and have a secondary location in case the first is lost or destroyed (for example, in a fire, tornado, or lost in a move). Then tell someone where these items are located. 

Your checking and savings accounts need to have a POD (payable on death). TOD is for assets; POD is for personal financials.

If you're like me, I'm always with my husband, so I have a secondary beneficiary on everything. Since we're often together, the chances are higher that both of us could be in an accident. It's always good to have a plan B.  You need to have a name, phone number, Social Security number, and date of birth for your beneficiaries. You need to have that information available so your hard-earned money and assets don't get lost or misplaced in the confusion. 

Update your beneficiaries. Times change; people move in and out of your life, so it's important to update it periodically. 

Let someone know who your TOD or beneficiaries are. Many people don't share that information, and the beneficiaries don't even know. 

*This is not legal advice. I just wanted to share my experience with you.