Understanding the Uniform Transfer on Death Security Registration Act: A Guide

Definition & Meaning

The Uniform Transfer on Death Security Registration Act is a law designed to simplify the transfer of securities when a person passes away. Under this act, individuals can register their securities in a way that allows them to be transferred directly to named beneficiaries upon the owner's death. This registration can be indicated by the phrases "transfer on death" or "pay on death," or their acronyms, TOD or POD, placed after the owner's name. This method ensures that the securities do not become part of the deceased's estate and are not governed by their will.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: Jane registers her stock account with a TOD designation, naming her son as the beneficiary. Upon Jane's death, the stocks automatically transfer to her son without going through probate.

Example 2: John and his partner hold a joint account with a TOD designation. If John passes away, the account will pass directly to his partner, provided they are named as the beneficiary. (hypothetical example)

State-by-state differences

State Details
California Allows TOD registration for various securities.
New York Has specific forms and procedures for TOD registration.
Texas Recognizes TOD designations but may have different beneficiary rules.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

What to do if this term applies to you

If you are considering using the Uniform Transfer on Death Security Registration Act, start by reviewing your current securities and deciding who you would like to name as beneficiaries. You can use legal form templates from US Legal Forms to create or modify your TOD or POD registrations. If your situation is complex, it may be wise to consult with a legal professional for tailored advice.

Quick facts

  • Typical fees: Varies by state and institution.
  • Jurisdiction: State-specific laws apply.
  • Beneficiary changes: Allowed at any time without consent.
  • Assets transferred: Generally receive a full step-up in cost basis.

Key takeaways

Frequently asked questions

A TOD registration allows securities to be transferred directly to a named beneficiary upon the owner's death, bypassing probate.