Originally Posted by MBMiner
Don't you mean that "technically" it is frozen at deate of death but for practical purposes you might be able to get away with transactions in the account until the depository learns of the death?
If you have full access to someone's account, you can make trades and remove all the assets from it. If the TOD beneficiary had no knowledge of this account, they'd never know to pursue the assets since this won't go through probate (This is probably one of the great dangers of bypassing probate, losing track of an asset). The only time this account would be frozen is when someone contacts the brokerage to let them know the account owner died. From a legal standpoint, I'd imagine you could sue the brokerage, but I don't know if it would do any good in the example I gave. It may fall on the beneficiary to try to find the party and take them to court.
I will also mention before obtaining the executor of the estate court docs, you can elect to not transfer ownership of a TOD bank account because future checks may need to be processed in the deceased's name.