TOD vs. POD: What’s the Difference in Estate Planning?

When planning your estate, you may hear the terms “TOD” (Transfer on Death) and “POD” (Payable on Death). These are simple yet powerful tools that allow your assets to pass directly to your beneficiaries—without going through probate. But what’s the difference between them, and how do you know which is right for your situation?

Below, we’ll break down what each term means, how they work in Florida, and why they may be a valuable part of your estate plan.

What Is a POD (Payable on Death)?

A POD designation is typically used with bank accounts—such as checking, savings, or certificates of deposit. You name a beneficiary directly with the bank. Upon your death, the funds transfer to that person automatically. Until then, you retain full control over the account.

Examples of POD accounts:

• Checking and savings accounts
• Money market accounts
• Certificates of deposit (CDs)

Key features:

• Only effective upon death
• No access granted to the beneficiary during your lifetime
• Easy to set up with your bank or credit union

What Is a TOD (Transfer on Death)?

A TOD designation is commonly used with investment accounts or certain titled assets, and in some states, even real estate and vehicles. Like PODs, they allow the asset to bypass probate and go straight to the named beneficiary.

Examples of TOD assets:

• Brokerage and investment accounts
• Stocks and bonds
• Vehicles (in some states)
• Real estate (if Florida law allows via a special deed)

Key features:

• You keep full ownership and control during life
• No probate needed for transfer
• Can be changed or revoked at any time

Comparing TOD and POD

Why Use TOD or POD Designations in Florida?

In Florida, probate can be time-consuming and expensive. POD and TOD designations offer an easy, inexpensive way to pass assets to loved ones without involving the court system. They’re especially helpful for small to mid-sized estates or when used as part of a broader plan involving trusts and wills.

However, keep in mind:

• TOD deeds for real estate are not widely available in Florida (as of now).
• These tools only cover the designated assets—everything else may still go through probate.
• Naming the wrong person or failing to update beneficiaries can cause conflict.

Choosing the Right Tool for Your Assets

You don’t have to pick one or the other—many estate plans use both TOD and POD designations alongside wills, trusts, and powers of attorney. The key is to align your beneficiary designations with your overall estate goals.

Conclusion: Simple Tools That Can Avoid Complications

Both TOD and POD designations are practical ways to simplify estate transfers and avoid probate in Florida. But they should be used carefully and reviewed regularly to ensure they still reflect your wishes.

If you have questions about how TOD or POD designations fit into your Florida estate plan, contact Bart Scovill, PLC. We’ll help you make sure your assets pass smoothly and according to your intentions.