Transfer on Death in Florida: What It Means for Stocks, Bank Accounts, and Other Assets

When it comes to estate planning in Florida, one of the most effective ways to simplify the transfer of certain assets is by using a Transfer on Death (TOD) or Payable on Death (POD) designation. These tools allow property like bank accounts and investment accounts to pass directly to a named beneficiary when you pass away—bypassing Florida’s probate process.

What Does Transfer on Death Mean?

A Transfer on Death (TOD) designation allows you to name a beneficiary who will automatically inherit the asset when you die. Unlike joint ownership, a TOD beneficiary has no rights during your lifetime—you remain in full control. You can spend, sell, or close the account at any time. The designation only takes effect after your death.

TOD and POD Options in Florida

Bank Accounts

Florida law allows you to add a Payable on Death (POD) designation to bank accounts such as checking, savings, or CDs. At your death, the bank will transfer the funds directly to the named beneficiary once they provide a death certificate and proper identification.

Stocks, Bonds, and Brokerage Accounts

Florida recognizes Transfer on Death (TOD) registration for investment accounts through the Uniform Transfer on Death Securities Registration Act. This means that stocks, bonds, and brokerage accounts can be retitled directly into the beneficiary’s name without probate. The beneficiary will need to work with the financial institution to claim the assets.

Real Estate

Unlike some other states, Florida does not allow TOD deeds (sometimes called "beneficiary deeds"). If you want to pass real estate outside probate in Florida, you’ll need to consider other tools such as:

• Lady Bird deeds (Enhanced Life Estate Deeds), which let you keep full control during your lifetime but automatically transfer the property at death.
• Trust planning, which can hold title to your real estate and allow seamless transfer to beneficiaries.

Benefits of Using TOD and POD in Florida

• Avoids Probate: Florida’s probate process can be time-consuming and expensive. TOD and POD designations allow assets to transfer outside of probate.
• Easy to Set Up: Usually just requires filling out a form with your bank or brokerage.
• Flexible: You can change or revoke the beneficiary designation anytime.
• Keeps You in Control: Unlike joint ownership, your beneficiary has no access while you are alive.

Important Considerations

• Conflicts with a Will: TOD and POD designations override what’s written in your will. If your will leaves everything equally to your children, but your bank account lists only one child as a POD beneficiary, that account will go to them alone.
• Multiple Beneficiaries: Not all financial institutions in Florida allow multiple beneficiaries. If that’s important to you, check with your bank or brokerage.
• Tax Issues: TOD and POD avoid probate, but not federal estate or income taxes.
• Updates After Life Changes: Be sure to update designations after marriage, divorce, or the birth of children.

Final Thoughts

For Florida residents, TOD and POD designations are simple yet powerful tools for transferring certain assets without the need for probate. They work best when coordinated with a broader estate plan that also accounts for assets—like real estate—that cannot be transferred this way under Florida law. By combining TOD or POD with tools like a Lady Bird deed or trust, you can make sure your estate passes smoothly and according to your wishes.

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