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Transfer on Death |
Also found in: Acronyms | 0.01 sec. |
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Transfer On Death (TOD) The process of changing title of a security from one name to another upon the death of one of the titleholders. Transfer on Death A brokerage account into which the account holder places assets while maintaining control of them, with the proviso that the assets pass on to beneficiaries after the account holder's death. That is, the account holder maintains the ability to invest, profit from, or otherwise use the securities and other assets in the transfer-on-death account. The assets in the account pass on to the beneficiary following the death of the account holder. This helps the beneficiary avoid the sometimes lengthy probate process. However, because the account holder maintains the rights of ownership (though not ownership itself) the account is subject to the estate tax. See also: Totten trust.
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