Transferable on death is typically used for which assets?

• A. TOD (transferable on death)
• B. POD (payable on death)
• C. Totten trust
• D. Probate

Answer: (A)

Transfer-on-death designations let you name a beneficiary who receives an asset automatically at your death, avoiding probate for that asset. This approach is most commonly used for financial accounts whose title can carry a TOD designation, such as brokerage or investment accounts and other types of securities. It’s a way to keep ownership outside the probate process by directing who gets the asset directly when you die.

Payable-on-death is a similar idea typically used for bank accounts, where the funds pass to a named beneficiary but in a banking context rather than for investments. Totten trusts are an older, trust-like arrangement used for bank funds that designate a beneficiary, but they are not the same as a TOD designation on investments. Probate refers to assets without any such designation, which must pass through the court-supervised process.