TOD (Transfer on Death) designations, POD (Pay on Death) designations, and beneficiary designations can be useful in the right circumstances. Each of these tools allows for an automatic transfer to the named beneficiary at the death of the owner. But these tools can have a few shortfalls. First, if the named person predeceases the owner, typically it will not be effective to transfer the assets. Sometimes, you could name a contingent beneficiary and then it would go to that person. But, if there … [Read more...] about Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
TOD
“If I Die”
Clients often think in terms of “if I die, I want x, y, and z to happen.” Unfortunately, the human condition is still terminal…at least for now. There have been numerous attempts in history to end mortality. Often, it was the attempts themselves which induced death. Here’s a Newsweek article which details historical and current attempts to achieve immortality and “cure” death. Until immortality is achieved, we must plan for the eventuality of death. Unfortunately, even people who seem very … [Read more...] about “If I Die”
Comprehensive Estate Plan Includes Funding
A comprehensive estate plan is one that includes all the documents necessary to handle the affairs of the person if they were to die or become incapacitated today. That means that any funding which needs to be done is done. In the very simplest of plans, that could mean having powers of attorney in place to address incapacity and beneficiary designations, transfer on death (“TOD”) designations, or joint tenancy to handle financial accounts and other assets. Of course, a will would round out … [Read more...] about Comprehensive Estate Plan Includes Funding
Beneficiary Designations Are Critical
As estate planning attorneys, we know how beneficiary designations can be an important part of the estate planning process. A large portion of our clients’ wealth is controlled by beneficiary designations. Some of it is in qualified plans. In those plans, the beneficiary designation determines the speed at which distributions must be taken by the beneficiary. Some of the client’s wealth controlled by beneficiary designations may be in life insurance. Some of the wealth may be in financial … [Read more...] about Beneficiary Designations Are Critical
