TOD (Transfer on Death)
A designation on an asset (like a brokerage account or real estate deed in some states) that specifies who inherits it when you die. The asset transfers directly to the named beneficiary without going through probate.
Legal Definition
A beneficiary designation authorized by statute that allows the owner of an asset to designate a person to receive the asset upon the owner's death, effective without probate, typically applicable to securities, bank accounts, and in some states, real property.
Practical Example
Carol adds a TOD designation to her brokerage account naming her daughter. When Carol dies, her daughter simply presents a death certificate to the brokerage firm and the account transfers to her, completely bypassing probate.