Is a TOD designation the same as naming a beneficiary

[RetireBy90]

What happened with the proceeds from the sale of the home?

-ERD50

Funds from house were added to her brokerage account so went with the beneficiary designation.

 

[audreyh1]

I did speak with the broker today and downloaded the form. This form would supercede the broker beneficiary form already signed by my DM and in the broker's system. But the broker also stated that regardless of which form used, activity is frozen at death(not a surprise) and assigned to a department to resolve with a representative of the estate, so it is still unclear to me if there is any real difference. I will probably complete the form anyway. I've requested a copy of the beneficiary form so that I can compare the two.

I was informed that upon death accounts would be opened for the TOD beneficiaries, and the equities split evenly and moved to the new accounts.

The courts are not involved.

 

[ERD50]

Originally Posted by ERD50 View Post
What happened with the proceeds from the sale of the home?

-ERD50

Funds from house were added to her brokerage account so went with the beneficiary designation.

Ahhh, OK, that makes sense. Thanks.

-ERD50

 

[Golden sunsets]

I was informed that upon death accounts would be opened for the TOD beneficiaries, and the equities split evenly and moved to the new accounts.

The courts are not involved.

Good to know for when the time comes. We already have a taxable brokerage account at the same broker.

 

[Golden sunsets]

What happened with the proceeds from the sale of the home?

Each State may have its own laws, but in IL it is the total $ amount that triggers probate, so a $200,000 house, or $200,000 in investments would both trigger probate.

Now a side comment - it appeared to me that if you didn't have over $100,000 in any one account (the IL probate limit), it would be the "honor system". IIRC, if the trustee tried to take out more than $100,000, the institution would require some probate documentation (or maybe only release it to the probate court?). But if you had a $10,000 account, I think all they might do is ask if probate is involved. I'm not suggesting anyone attempt this, but I do wonder if/how it would be enforced.

-ERD50

I guess what you are saying then is the State of Illinois does not recognize TOD or POD designations. In my State, Assets with a beneficiary designation escape probate regardless of size.