Should You Add a Transfer on Death Beneficiary to Your Assets? #298
Release Date: 03/24/2026
Should You Add a Transfer on Death Beneficiary to Your Assets? #298
Retire With Ryan
On the show this week, I’m talking all about the topic of probate and how adding a Transfer on Death (TOD) or Payable on Death (POD) beneficiary designation to certain assets can help you avoid your estate being tied up in the probate process. You’ll learn which types of accounts allow for TOD or POD beneficiaries, why these designations might be preferable to joint tenancy, and the pros and cons of setting them up. I break down step-ups in cost basis, the impact on estate taxes, and touch on differences across states—plus considerations to make sure your estate plan actually fits your...
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Tax Extension Mistakes to Avoid This Filing Season, #297
Retire With Ryan
In the last episode, I discussed seven mistakes to avoid when filing your 2025 taxes. So in this episode, I'm going to discuss the tax-filing mistakes people can make when filing an extension. Here are the four most common extension errors that could cost you money, including misconceptions about payment deadlines, underestimating taxes, and the importance of understanding state-specific extension rules. You will want to hear this episode if you are interested in... [00:00] Mistakes that people can make if they're filing an extension [01:41] Importance of filing for an extension by...
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Retire With Ryan
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Retire With Ryan
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Retire With Ryan
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Retire With Ryan
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Retire With Ryan
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Retire With Ryan
Have you ever fallen victim to a RAT attack? No, not the furry kind, a Remote Access Trojan attack. I’m discussing how cybercriminals use social engineering to target victims, and the real-world impact these threats can have on your investment accounts and personal information. I reveal the latest tactics scammers use, and, most importantly, offer practical tips to help you recognize warning signs, safeguard your accounts, and minimize your risk, whether you’re an individual managing your retirement nest egg or a business owner overseeing company assets. You will want to hear...
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Retire With Ryan
A listener recently wrote in with a common and important retirement planning question: If I’m already maxing out my 401(k), can I also contribute to a traditional IRA in the same year? The short answer is yes—but whether it makes sense, and how much benefit you receive, depends on your income, tax situation, and long-term goals. In this episode, I break down how traditional IRA contributions work alongside employer-sponsored retirement plans, when those contributions are deductible, and what options are available if your income is too high for a deduction. We also explore alternative...
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Top 5 Growth ETFs to Own For 2026 and Beyond, #289
Retire With Ryan
Last week, we covered the best investments to preserve your money, but this week we are shifting gears to focus on growth. For retirees, the goal is to have an income that outpaces inflation, and historically, the best way to achieve that is by having 50% to 70% of your portfolio invested in stock funds. In this episode, I break down five specific Exchange Traded Funds (ETFs) that can help you grow your wealth in 2026. I discuss why I prefer ETFs over mutual funds, specifically focusing on cost, transparency, and liquidity, and provide the exact ticker symbols and expense ratios for the funds...
info_outlineOn the show this week, I’m talking all about the topic of probate and how adding a Transfer on Death (TOD) or Payable on Death (POD) beneficiary designation to certain assets can help you avoid your estate being tied up in the probate process.
You’ll learn which types of accounts allow for TOD or POD beneficiaries, why these designations might be preferable to joint tenancy, and the pros and cons of setting them up. I break down step-ups in cost basis, the impact on estate taxes, and touch on differences across states—plus considerations to make sure your estate plan actually fits your wishes.
You will want to hear this episode if you are interested in...
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00:00 Understanding Transfer on Death designations
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03:05 Joint tenants with rights of survivorship
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04:37 Pros and cons of TOD and POD accounts
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09:03 Challenges of TOD in estate planning
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11:24 Process for establishing TOD beneficiaries
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13:00 Does TOD avoid probate?
What Is a Transfer On Death (TOD) Designation?
A Transfer on Death designation allows you to name one or more beneficiaries who will automatically receive ownership of your accounts or property when you pass away. Unlike retirement accounts and life insurance policies—which typically require you to name beneficiaries—many investment and bank accounts, such as mutual funds, brokerage accounts, and money markets, do not automatically offer this option. That’s where TOD comes into play, bridging a critical gap in your estate planning.
Pros and Cons of Using TOD and POD Accounts
One of the main benefits of a Transfer on Death (TOD) is that it allows designated beneficiaries to inherit assets quickly and directly, often by providing just a death certificate and minimal paperwork, which means they can avoid prolonged probate proceedings. This quick turnaround not only spares beneficiaries the stress and uncertainty of waiting for a court-supervised process but also helps them sidestep probate fees and other complications. Beneficiaries can benefit from a full step-up in cost basis on inherited assets, potentially reducing capital gains taxes if they sell soon after inheriting. For individuals who want to ensure their loved ones receive specific assets efficiently—and without granting them any access or control during their lifetime—a TOD can be an appealing tool.
However, while TOD accounts streamline asset transfer, they can introduce challenges if not coordinated carefully with a broader estate plan. For example, if you wish to provide ongoing financial support rather than a lump sum, a TOD may not be suitable because the beneficiary immediately gains control of the assets. This could present issues for beneficiaries who are not financially responsible or who qualify for government aid. Additionally, TOD designations override instructions in a will, which means any inconsistencies in how beneficiaries are named or assets are divided, could cause confusion or disputes. TOD accounts are convenient, but they require thoughtful coordination with other estate planning elements to avoid unintended consequences.
Does TOD Always Avoid Probate?
While TOD almost always avoids the probate process for the specific asset, state laws can vary. Some less populous or smaller estates may not need to open probate regardless, but others require probate for everyone, as it’s a revenue-generating process.
TOD and POD beneficiary designations offer an easy, low-cost way to keep more of your assets in your family’s control, minimize delays, and potentially avoid the hassle of probate. Thoughtful planning addresses not just asset transfer, but also your heirs’ needs and the tax implications. As with any estate tool, consider your specific circumstances and consult with a professional before making changes.
Resources Mentioned
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