Estate planning is something that everyone should take into account these days as the mysterious Coronavirus makes its way around the entire world.
We hope that the COVID-19 pandemic has been serving you positively while you’re getting to spend more time at home. We know it’s a bit of a change, especially for those who work regular 9-5 hours and are suddenly working remotely, or have their hours cut.
During these challenging and uncertain times, you might be taking this opportunity to think about what could possibly go wrong if something were to happen to you. When it comes to estate planning, there are some tools that you’ve got available to you and are easy to get to.
These tools are known as the transfer on death (TOD) mechanism. Jovanna Bearden, from Bearden Law, will elaborate more on this.
What Does the Transfer on Death Mechanism Do?
If you have something titled under your name you can, at your death, give ownership of that item or account to somebody else without them having to go through the court. For TOD, you won’t necessarily need a will or a trust.
You also don’t need an executor. You can do this all on your own, you’ll just need to set it up in advance.
Here are three things you can get a TOD for:
The first thing that will be easiest to transfer is your car. To set this up, you can go to your local licensing office and ask them for a TOD file. They’ll have a form for you to fill out, and there will be a small fee for this.
Before filling out the form, you want to think of who you would want to inherit your car. After you’re done filling out the form, you’ll receive a new title with the TOD name on it.
When you pass, the person under the title will take care of your car. Overall, the process is simple.
To get a TOD for your bank account, go to your designated bank and ask for a TOD.
A TOD account will automatically transfer its assets to your beneficiary when you die.
For instance, if you have money in your savings account and your daughter is named as its beneficiary, that account will transfer to her upon your death.
3.House or Real Estate
To get a TOD for your house or real estate, you’re going to need a beneficiary deed, which you can get done at any attorney’s office. What the beneficiary deed does is it states who will be given your house or real estate when you pass.
We are able to get your beneficiary deed drawn up quickly for you. Just give us a call: (816)-787-1979
Got More Questions About TODs?
Transfer on death makes it easier for your beneficiary to inherit your belongings without them having to go to court, which we know is a hassle.
Having TODs taken care of while you’re alive will give you peace of mind knowing that in case something does happen, your loved ones won’t have to stress so much over the inheritance.
If you would like more information about TODs, don’t hesitate to contact Bearden Lawat (816) 787-1979