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Should you use transfer on death accounts?

On Behalf of | May 21, 2021 | Blog, Estate Administration

New Jersey adults who want to help their loved ones avoid the probate process after their death can do so using a transfer on death account. This is just one of many of the tools that estate planning has to offer people. If you’re unfamiliar with this type of account, it’s a good idea to learn so that you can use it if necessary as part of your estate planning process.

What is a transfer on death account?

Estate planning professionals will recommend transfer on death accounts to help prevent the probate process in the future. These types of accounts can be established for things like investments where a beneficiary can easily be named. Upon your death, a beneficiary would just need to provide the company holding your account with an original death certificate to receive sole ownership of it.

What are the benefits of transfer on death accounts?

There are many different benefits that you can enjoy by utilizing transfer on death accounts. The first is that they’re super simple to set up, and they allow you to easily pass on assets after your death. Traditionally, your last will and testament will go through the probate process before any of your beneficiaries receive their assets. With a transfer on death account, there’s no need for the probate process. Rather, your beneficiaries can enjoy the direct transfer of an asset into their name after your passing. This will save your beneficiaries both time and money since they won’t have to endure the probate process.

Transfer on death accounts are a great way to help keep your assets out of the probate process after your passing. While not every account may be eligible for a transfer on death establishment, many are. It’s best to speak with an attorney about which accounts can be set up to transfer upon your death.