TOD, POD, OMG! What Do All These Letters Mean—And Can They Help You Avoid Probate?
Let’s face it: the world of probate is full of strange acronyms that sound like they belong in a text message, not a courtroom.
TOD? POD? Are we planning a music playlist or transferring grandma’s bank account?
Don’t worry—we’re going to break this down. These little three-letter combos can make a big difference when it comes to keeping your loved ones out of probate court.
Wait… What Is Probate Again?
Quick refresher: probate is the court process for handling someone’s estate after they die. It’s not always fast. It’s not always cheap. It’s not always pretty. So when people ask, “How do I avoid probate?”—they’re onto something.
Enter our MVPs: Transfer on Death (TOD) and Payable on Death (POD).
POD = Payable on Death (Not a Rock Band)
Let’s start with POD, which stands for Payable on Death. This is something you can add to a bank account or credit union account. It’s a way of telling the bank, “Hey, when I die, give what’s left in this account to [insert name of lucky beneficiary here]. No court paperwork required.”
It doesn’t give that person any access to your account while you’re alive. You still control the money. But once you’re gone, the funds go straight to them like a magical, probate-skipping inheritance.
You can name more than one person. You can change it any time. And best of all—it’s free to set up. Just ask your bank.
TOD = Transfer on Death (Not a Medical Emergency)
Next up: TOD, or Transfer on Death. This one is used for things like:
Real estate
Cars
Investment accounts
Brokerage accounts
With a TOD designation, you’re saying: “When I die, this property should go to my beneficiary—no court required, thank you very much.”
In Missouri, you can file a TOD deed for your house with the county recorder. Kansas allows a similar thing called a beneficiary deed. Either way, you still own the property while you’re alive, but it’s got a fast pass to your named person after you’re gone.
So… Do TOD and POD Avoid Probate?
Yes! That’s the beauty of them. These designations bypass the probate process entirely. The bank or title company only needs a death certificate and possibly a short form to release the asset.
No judges. No filings. No legal drama. It’s like skipping the line at the DMV—but for your entire estate.
Final Thoughts (AKA “What Have We Learned?”)
If you want your loved ones to inherit smoothly—and with fewer headaches—TOD and POD are simple, effective tools. They won’t solve every estate problem (sorry, family drama is still on the table), but they can make life a lot easier for the people you leave behind.
So go ahead: impress your banker with your knowledge of acronyms. And remember—sometimes the best legal planning sounds like alphabet soup.
This post is for general information only and is not legal advice. For help figuring out if TOD or POD designations are right for you or your family, contact a licensed attorney in Kansas or Missouri.