--- title: Transfer of Death (TOD) Accounts for Estate Planning description: What is a TOD account? How does it work? This blog post will answer your questions about TOD accounts and how they can help you with your estate planning needs. image: https://www.carboncollectiveinvesting.com/hubfs/Transfer_Of_Death_(TOD)_Accounts_for_Estate_Planning.png --- [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo-white.4f6047d4.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) [![Carbon collective](https://www.carboncollectiveinvesting.com/hubfs/raw_assets/public/CarbonCollective_August2021%20copy/images/carbon-collective-green-investing-logo.53b28bee.svg "Carbon collective")](https://www.carboncollectiveinvesting.com/) - About - Employers - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - [401(k) Comparison Tool](https://www.carboncollectiveinvesting.com/401k/plan-comparison-tool) - Individuals - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [ETF](https://www.carboncollectivefunds.com/) - Learn - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Blog](https://blog.carboncollective.co/) - [Tools](https://tools.carboncollective.co/calculator/) - Log in - [Carbon Collective](https://app.carboncollective.co) - [Altruist](https://app.altruist.com) [Talk to a human](https://ask.carboncollective.co/f4o5dylkg) [Sign up](https://app.carboncollective.co/sign-up) [Log In](http://app.carboncollective.co/) **[Home](https://www.carboncollectiveinvesting.com/) > [Sustainable Investing](https://www.carboncollectiveinvesting.com/sustainable-investing) >** Transfer of Death (TOD) Accounts for Estate Planning # Transfer of Death (TOD) Accounts for Estate Planning ![](https://www.carboncollectiveinvesting.com/hubfs/Brooke%20Tomasetti.png) Written by Brooke Tomasetti | Reviewed by [Subject Matter Experts](https://www.carboncollectiveinvesting.com/subject-matter-experts) Updated on October 1, 2024 Fact Checked Why Trust Carbon Collective? ### Table of Contents ## **What Is a TOD Account?** A TOD account is a bank or investment account that allows the owner to name [one or more beneficiaries](https://www.freewill.com/learn/what-is-a-beneficiary) who will inherit the assets in the account after his or her death. Unlike a will, this can help avoid the time-consuming and costly probate process; TOD accounts pass directly to the named beneficiaries without having to go through probate. ## **How Does a TOD Account Work?** When the account owner dies, the assets transfer to the named beneficiaries [without going through probate](https://learn.financestrategists.com/finance-terms/what-is-probate-2/). The TOD designation supersedes any contrary provision in the account owner's will. TOD accounts can be used for bank accounts, brokerage accounts, and even real estate. It is crucial to note that TOD accounts are revocable, which means the account owner can change the beneficiaries at any time. There are also some potential pitfalls to consider before setting up a TOD account. ## **How to Open a TOD Account?** Opening a TOD account is relatively simple. Most banks and brokerages will have forms you can fill out to designate your beneficiaries. It is important to properly fill out and sign the form, as this will be the legal document that controls who inherits the assets in the account. You should also keep the form in a safe place where your loved ones can find it after your death. ## **TOD Account Beneficiaries** The beneficiaries of a TOD account can be anyone the account owner chooses, including family members, friends, or even charities. It is important to note that beneficiaries can be changed only by the account owner and not the beneficiary. ## **TOD Accounts vs Wills** While both TOD accounts and wills allow you to name beneficiaries for your assets, there are some key differences. TOD accounts pass directly to the named beneficiaries without having to go through probate, whereas wills must go through the probate process before the assets can be distributed to the heirs. This can save time and money, as probate can be lengthy and costly. TOD accounts are also revocable, which means the account owner can change the beneficiaries at any time. Wills, on the other hand, [are not revocable and cannot be changed once they have been executed](https://www.investopedia.com/articles/pf/08/what-is-a-will.asp). ## **![TOD_Accounts_vs_Wills](https://www.carboncollectiveinvesting.com/hs-fs/hubfs/TOD_Accounts_vs_Wills.png?width=1920&name=TOD_Accounts_vs_Wills.png)** ## **TOD Account Supersedes a Will** It is important to note that TOD accounts supersede wills. This means that if you have a TOD account and die, the assets in the account will go to the named beneficiaries, regardless of what your will says. For this reason, it is important to keep your TOD account up to date and ensure that the beneficiaries reflect your wishes. ## **TOD Accounts and Death** When the account owner dies, the assets transfer to the named beneficiaries without going through probate. The TOD designation supersedes any contrary provision in the account owner's will. If you have a TOD account and die, the assets in the account will go to the named beneficiaries, regardless of what your will says. ## **TOD Accounts and Spouses** In most cases, spouses are not automatically entitled to the assets in a TOD account. This can be good or bad, depending on your relationship with your spouse. If you are in a good relationship with your spouse and want them to inherit your assets, you will need to name them as a beneficiary. However, if you are in a bad relationship with your spouse and do not want them to inherit your assets, you can leave them off the account. Also, if the account owner named their spouse as the beneficiary and remarries after their death, the new spouse will not inherit the assets unless specifically named as a beneficiary. ## **Pitfalls of TOD Accounts** There are some potential pitfalls to consider before setting up a TOD account. First, it is important to properly fill out and sign the form, as this legal document controls who inherits the assets in the account. You should keep the form in a safe place where your loved ones can easily find it after your death. Second, TOD accounts are revocable, which means the account owner can change the beneficiaries at any time. This can be a problem if you name someone as a beneficiary and later change your mind but forget to update the account. Lastly, TOD accounts supersede wills, meaning that if you have a TOD account and die, the assets will go to the named beneficiaries, regardless of what your will says. ## **The Bottom Line** TOD accounts are a simple and effective way to pass on your assets to your loved ones. It is a great way to distribute your assets according to your wishes. It is crucial to keep the account up to date and ensure the beneficiaries reflect your wishes. You should also keep the form in a safe place where your loved ones can find it after your death. They can be a good choice if you want to avoid probate or if you want to have the flexibility to change the beneficiaries in the future. However, there are potential pitfalls, so it is important to do your research and consult with an attorney. It can be a helpful tool in estate planning, but it is important to understand how they work before setting one up. Consult with an experienced estate planning attorney to ensure a TOD account is the best option for you and your family. ## **FAQs** ### **1. If someone has both a TOD account and will, which one will take effect?** If someone has both a TOD account and a will, the TOD account will take precedence, and the assets in the account will go to the named beneficiaries, regardless of what the will says. ### **2. Where can I get a TOD form?** Most banks and financial institutions have TOD forms you can fill out. You can also find blank forms online. However, it is important to consult with an attorney to ensure the form is properly filled out and signed, as this legal document controls who inherits the assets in the account. ### **3. Can my family file a complaint if I die and my TOD account does not hold them as beneficiaries?** If your family is not listed as beneficiaries on your TOD account, they will not be able to inherit the assets in the account. However, they may be able to file a complaint if they believe that you meant for them to inherit the assets but forgot to update the account. ### **4. How many beneficiaries can I include on my TOD account?** There is no limit to the number of beneficiaries you can include on your TOD account. However, it is important to keep the form up to date and make sure the beneficiaries reflect your wishes. You should also keep the form in a safe place where it can be easily found by your loved ones after your death. ### **5. How many beneficiary changes can I make to my TOD account?** You can make as many changes to the beneficiaries on your TOD account as you want. Note that the last beneficiary change you make will supersede all previous changes.   ### Related Topics - [Sustainable 401(k) Plan](https://www.carboncollective.co/401k) - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing/) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - [Retirement Glossary](https://www.carboncollective.co/sustainable-investing/retirement-planning-glossary) - [Best Retirement Plans](https://www.carboncollective.co/sustainable-investing/the-10-best-retirement-plans) - [Wealth Manager Vs Financial Advisor](https://www.carboncollective.co/sustainable-investing/wealth-manager-vs.-financial-advisor) ![Attend Our Next Webinar](https://www.carboncollectiveinvesting.com/hubfs/carbon-collective-green-investing-icon-webinar.12af7b6e.svg) ### Attend Our Next Webinar Join our next Sustainable Investing 101 webinar, get our favorite DIY options, and walk through how we build our portfolios. [Watch Now](https://www.carboncollective.co/sustainable-investing-webinar-green-retirement-month) ![Get Our Newsletter](https://www.carboncollectiveinvesting.com/hubfs/carbon-collective-green-investing-icon-demo.6ed28722.svg) ### Get Our Newsletter Go a level deeper with us and investigate the potential impacts of climate change on investments like your retirement account. Join Newsletter ![close-typeform](data:image/gif;base64,R0lGODlhEQARAIAAAODn7P///yH5BAEHAAEALAAAAAARABEAAAIqBIKpab3v3EMyVHWtWZluf0za0XFNKDJfCq5i5JpomdUxqKLQVmInqyoAADs=) ![Talk To A Human](https://www.carboncollectiveinvesting.com/hubfs/carbon-collective-green-investing-icon-chat.49d48c5b.svg) ### Talk To A Human Joining a new investment service can be intimidating. We’re here for you. Click below to email us a question or book a quick call. [Ask a Question](https://ask.carboncollective.co/f70pooobq) Topics ## Sustainable Investing Topics View our list of some topics below. See More - Portfolios - [Performance](https://www.carboncollectiveinvesting.com/returns) - About - [Sustainable 401(k)](https://www.carboncollectiveinvesting.com/401k) - Learn - [FAQ](https://www.carboncollective.co/en/knowledge/faqs) - [Sustainable Investing](https://www.carboncollective.co/sustainable-investing) - [Investing Basics](https://www.carboncollective.co/sustainable-investing/investing-basics) - Contact - [Contact us](mailto:hello@carboncollective.co) - [Legal](https://www.carboncollective.co/legal) - [Privacy Policy](https://www.carboncollectiveinvesting.com/hubfs/2022-11%20Carbon%20Collective%20Privacy%20Policy.pdf) - [Back to top](https://www.carboncollectiveinvesting.com/sustainable-investing/transfer-of-death-tod-accounts-for-estate-planning#top-of-page) DISCLAIMERS: Advisory services provided by Carbon Collective Investment LLC (“Carbon Collective"), an SEC-registered investment adviser. A copy of Carbon Collective's current written disclosure statement discussing Carbon Collective’s business operations, services, and fees is available at the SEC’s investment adviser public information website – [www.adviserinfo.sec.gov](https://adviserinfo.sec.gov/firm/summary/310129) or [our legal documents here](https://blog.carboncollective.co/legal-documents/). The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. Carbon Collective does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Carbon Collective’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Investments in securities: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Carbon Collective's charges and expenses. Carbon Collective's internet-based advisory services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client's financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form CRS, Form ADV Part 2 and other disclosures. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Carbon Collective is not registered. © 2026 Carbon Collective Corporation. All rights reserved. × #### Fact Checked Carbon Collective partners with financial and climate experts to ensure the accuracy of our content. Our team of reviewers are established professionals with years of experience in areas of personal finance and climate. They have contributed to top tier financial publications, such as Reuters, Axios, Ag Funder News, Bloomberg, Marketwatch, Yahoo! Finance, and many others. This team of experts helps Carbon Collective maintain the highest level of accuracy and professionalism possible. × #### Why Trust Carbon Collective Carbon Collective is the first online investment advisor 100% focused on solving climate change. We believe that sustainable investing is not just an important climate solution, but a smart way to invest. We follow ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources. Much of our research comes from leading organizations in the climate space, such as Project Drawdown and the International Energy Agency (IEA). Our goal is to deliver the most understandable and comprehensive explanations of climate and finance topics. Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including MarketWatch, Bloomberg, Axios, TechCrunch, Forbes, NerdWallet, GreenBiz, Reuters, and many others. We strive to empower readers with the most factual and reliable climate finance information possible to help them make informed decisions. } ```json { "@context" : "https://schema.org", "@type" : "Organization", "alternateName" : "Carbon Collective", "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "en", "contactType" : "customer service", "telephone" : "(650) 868-2697" }, "logo" : "https://www.carboncollective.co/hubfs/CarbonCollectiveLogo.png", "name" : "Carbon Collective Investing LLC", "sameAs" : [ "https://www.facebook.com/carboncollectiveinvesting/", "https://twitter.com/carbncollective", "https://www.instagram.com/carbon.collective/", "https://www.youtube.com/channel/UC769Y-F-L_B37kyQfdpvyXA", "https://www.linkedin.com/company/carbon-collective/", "https://www.crunchbase.com/organization/carbon-collective", "https://adviserinfo.sec.gov/firm/summary/310129", "https://www.wikidata.org/wiki/Q110243690" ], "url" : "https://www.carboncollective.co/" } ``` ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "If someone has both a TOD account and a will, the TOD account will take precedence, and the assets in the account will go to the named beneficiaries, regardless of what the will says." }, "name" : "1. If someone has both a TOD account and will, which one will take effect?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Most banks and financial institutions have TOD forms you can fill out. You can also find blank forms online. However, it is important to consult with an attorney to ensure the form is properly filled out and signed, as this legal document controls who inherits the assets in the account." }, "name" : "2. Where can I get a TOD form?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "If your family is not listed as beneficiaries on your TOD account, they will not be able to inherit the assets in the account. However, they may be able to file a complaint if they believe that you meant for them to inherit the assets but forgot to update the account." }, "name" : "3. Can my family file a complaint if I die and my TOD account does not hold them as beneficiaries?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "There is no limit to the number of beneficiaries you can include on your TOD account. However, it is important to keep the form up to date and make sure the beneficiaries reflect your wishes. You should also keep the form in a safe place where it can be easily found by your loved ones after your death." }, "name" : "4. How many beneficiaries can I include on my TOD account?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "You can make as many changes to the beneficiaries on your TOD account as you want. Note that the last beneficiary change you make will supersede all previous changes." }, "name" : "5. How many beneficiary changes can I make to my TOD account?" } ] } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "https://20345524.fs1.hubspotusercontent-na1.net/hubfs/20345524/Brooke%20Tomasetti.png", "url" : "https://www.carboncollectiveinvesting.com/sustainable-investing/author/brooke-tomasetti" }, "dateModified" : "2024-10-01", "datePublished" : "2022-07-12", "description" : "What is a TOD account? How does it work? This blog post will answer your questions about TOD accounts and how they can help you with your estate planning needs.", "headline" : "Transfer of Death (TOD) Accounts for Estate Planning", "image" : "https://20345524.fs1.hubspotusercontent-na1.net/hubfs/20345524/Transfer_Of_Death_%28TOD%29_Accounts_for_Estate_Planning.png", "mainEntityOfPage" : { "@id" : "https://www.carboncollectiveinvesting.com/sustainable-investing/transfer-of-death-tod-accounts-for-estate-planning", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.carboncollective.co/hubfs/CarbonCollectiveLogo.png" }, "name" : "Carbon Collective" } } ```