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Transfer-on-death (TOD) for investment accounts

The investment version of POD. Usually free, usually online.

Transfer-on-death (TOD) works like payable-on-death, but for investment accounts. You name who gets the account when you die, and it passes to them directly, without probate. Until then it stays fully yours: you can sell, move money or change the beneficiary at any time.

Which accounts it covers

• Brokerage accounts in your own name, and many joint accounts
• Stocks, bonds and mutual funds held at a brokerage
• Shares held directly with a company, through its transfer agent, which has its own form

Retirement accounts like IRAs and 401(k)s don't use TOD. They have their own beneficiary form.

How people usually add one

1. Log in to the brokerage's website or app and look for “beneficiaries” or “transfer on death”, often under account settings.
2. Can't find it? Many brokerages have a TOD form to download, or will send one if you call.
3. Add each person's full legal name. Many also ask for a date of birth, address or Social Security number.
4. Naming more than one person? Choose how to split it, for example 50/50. Many brokerages also let you name a backup (contingent) beneficiary.
5. Save or sign, and check that the account now shows the beneficiary.

What the family does later

The beneficiary usually contacts the brokerage with a certified death certificate, their own ID and the brokerage's claim form. The investments are then moved into an account in their name.

Good to know

• A TOD beneficiary generally takes priority over what a will says.
• Naming a child under 18 can be complicated. Many brokerages let you name an adult as custodian for them instead.
• Every state now has a TOD law for investment accounts. Louisiana's courts have treated these forms differently, so people there often check with a local attorney. Each brokerage also has its own form and rules.