TOD, POD and Joint Tenancy: 3 Simple Tools That Help Your Family Skip Probate

Probate — the court process that validates and distributes an estate — takes 9 to 24 months on average and can cost thousands. What many Americans don't know: several common assets can skip probate entirely, with paperwork that takes minutes, not months.

1. TOD — Transfer on Death

A TOD designation names who receives an asset directly upon your death. Brokerage accounts accept TOD beneficiaries in every state; many states also allow TOD deeds for real estate and vehicles. The asset passes outside probate, directly to the person you named. Cost: usually free. Time: one form.

2. POD — Payable on Death

The banking equivalent: checking, savings and CDs can carry a POD beneficiary. Your bank likely has the form ready — most account holders simply never asked. The named person presents a death certificate and ID, and the funds transfer. No court involved.

3. Joint tenancy with right of survivorship

When a home or account is held in joint tenancy, the surviving owner automatically absorbs the deceased's share. Powerful, but check how your property is actually titled — “we bought it together” doesn't always mean joint tenancy with survivorship. The deed says what counts.

The two traps

• Outdated beneficiaries beat your will. A TOD/POD designation overrides whatever your will says. An ex-spouse still named on a 401(k) is the classic, devastating example. Review designations after every life event.
• Set up but never documented. If nobody knows the designation exists — or which account is at which institution — your family still ends up searching. The tool only works if it's findable.

Document it once, in one place

Chapter 5 of The Legacy Book walks you through every account, policy and title — with prompts for TOD, POD, joint tenancy and trusts — so your family knows exactly what passes automatically and what doesn't. And the State-by-State Probate Cheatsheet (free bonus during launch week) shows whether your state allows TOD deeds and where the probate thresholds sit.

This article is general information, not legal advice — your attorney can confirm what fits your situation. But these three tools, plus one organized document, can spare your family most of the probate maze.