09/03/2026
Estate planning attorneys charge thousands of dollars for something you can do yourself for free in fifteen minutes.
It's called a Transfer on Death designation, and here's exactly how it works.
A TOD skips probate entirely. The property or account goes straight to your beneficiary. No attorney needed, no court, no months of waiting.
It costs $0 to add a TOD to most brokerage and bank accounts.
On accounts, you simply add a beneficiary directly to your brokerage or bank accounts. It's called TOD at brokerages and POD at banks. This is available in all 50 states.
For real estate, it's called a TOD deed. You add a beneficiary directly to the deed of your home or property. It has to be signed, notarized, and recorded with the county, but it's still a fraction of what a trust costs. This one's available in 30+ states.
Now here's what a TOD does not do, because I want to be straight with you about the limits.
It does not avoid estate taxes. It does not protect assets from creditors either. Your beneficiary inherits any debts attached to that asset along with it.
Here's my honest take, as a CFP®...
A TOD is the best tool that exists to avoid probate. It costs nothing, it protects your assets from a drawn out court process, and you can change it any time you want.
Not everyone needs a trust. A lot of people have been sold one they never actually needed.