TOD Beneficiary
Someone wanted to add “TOD” to a beneficiary arrangement. I don’t know why they thought that was needed. Does anyone suggest using that? I would not think that would negate a stretch, but why do it?
Someone wanted to add “TOD” to a beneficiary arrangement. I don’t know why they thought that was needed. Does anyone suggest using that? I would not think that would negate a stretch, but why do it?
Permalink Submitted by Alan Spross on Sat, 2007-11-10 03:48
That would be redundant if there was only one name, but could also be ambiguous if there were two names with the second the TOD. It could appear to be the account owner’s attempt to name a contingent beneficiary or control the successor beneficiary beyond his own death.
The custodian should eliminate that wording before it leads to legal costs.
Permalink Submitted by Al Fry on Sun, 2007-11-11 18:32
Good – that was my suggestion, as well.