Which designation is used for stocks, bonds, mutual funds, or other investments to transfer on death?

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

Answer: (C)

Transfer on death is the designation used to pass stocks, bonds, mutual funds, and other investments directly to a named beneficiary when you die. This setup lets those assets transfer outside of probate, avoiding court involvement for those particular holdings and speeding the recipient’s access. Payable on death applies to bank accounts rather than investments, so it isn’t used for securities. A Totten trust is an older arrangement typically used with bank accounts to name a beneficiary, not a standard tool for securities. Probate is the court process that handles assets without a non-probate designation. So, for investments, the designation that transfers on death is the Transfer on Death designation.