Things to Know About Payable-on-Death (POD) or Transfer-on-Death (TOD) Beneficiaries

When handling estate matters in Florida, it’s important to understand how different types of asset designations impact inheritance rights. Two common tools used to pass assets outside of probate are Payable-on-Death (POD) and Transfer-on-Death (TOD) designations. These forms of beneficiary assignments allow funds or property to be transferred directly to named individuals upon the account holder’s death, often bypassing the terms of a Will or Trust entirely.

If you’ve been named in a Will or Trust but discover that certain assets were left to others via POD or TOD designations, you may wonder where you stand legally. Have a conversation with a Pompano Beach estate litigation lawyer to learn more about how these mechanisms work. Doing so is key to protecting your rights and managing expectations during estate administration.

Do Beneficiaries Named in a Will or Trust Have Access to POD or TOD Assets?

Both POD and TOD designations bypass the probate process, which means the assets go directly to the named individuals without Court oversight or regard to what a Will or Trust may state.

• Payable-on-Death (POD) designations are typically used on bank accounts, including checking, savings, and certificates of deposit. When the account holder dies, the funds are distributed directly to the named POD beneficiary.
• Transfer-on-Death (TOD) designations function similarly but are commonly used for securities, brokerage accounts, and in some cases, real estate or vehicles. Upon the owner’s death, the asset is transferred to the named beneficiary on the TOD paperwork.

So, if you’ve been named in a Will or Trust and there are assets that have a POD or TOD designation, they are generally considered non-probate property. This means it does not pass through the Will or Trust and is not part of the probate estate. Even if a Will or Trust includes a statement about leaving all accounts to a person, if that bank account has a POD beneficiary listed, that asset will go to the POD designee, not the person named in the Will or Trust.

This can be a source of confusion and dispute, especially when the Will or Trust appears to conflict with POD or TOD documents. But under Florida law, the beneficiary designated is typically in control of the asset, and the funds or assets are not accessible to someone solely named in the Will.

 Can I Challenge a POD or TOD Designation?

There are some circumstances in which a POD or TOD designation can be challenged. If there was undue influence, such as someone manipulating the account holder into changing the beneficiary, that could be grounds for a challenge. Lack of capacity, forgery, and fraud are avenues available for challenges as well.

If you’ve been left out of a POD or TOD asset distribution in favor of another party, and you suspect wrongdoing or conflict with the decedent’s intentions, it’s essential to speak with an experienced Pompano Beach estate litigation lawyer. These disputes are time-sensitive and often fact-specific. A skilled lawyer can review the documentation, assess the potential for legal challenge, and protect your rights.

What questions do you have about POD and TOD designations? The estate attorneys at Mark R. Manceri, P.A. can answer your inquiries. Schedule a confidential consultation today.