Using a transfer on death designation for an account allows you to name a beneficiary specifically for that account so it isn't included as part of your probate estate when you die. That means that the account can be transferred when you die without having to go through court, which can save time and money.
Using a TOD
When you use a TOD on an account, you make the designation of who gets the account when you die with a form separate from your will. While this means that where the money goes won't be part of the public record like assets that pass under your will, it also means that any time you want to change your designation, you need to file another replacement designation for the account. If you only change your will, your account will pass according to your original designation.
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