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Article: POD and TOD accounts and your estate-planning arsenal: payable/transfer-on-death accounts are handy probate-avoidance tools that can even be used to transfer real estate. Or can they?(Illinois)
- Article from:
- Illinois Bar Journal
- Article date:
- October 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Illinois State Bar Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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POD, TOD--what are these arcane terms bandied about by bankers, brokers, and estate planners?
As noted elsewhere in this issue (see "Estate Planning for the rest of Us," page 520 ff), POD stands for "payable on death" and TOD stands for "transfer on death." The terms derive from 205 ILCS 625/1 et seq, the Illinois Trust and Payable on Death Accounts Act, and 815 ILCS 10/0.01 et seq, the Uniform ToD Security registration Act. Both permit property to be held in the name of one or more persons with a designated beneficiary to receive the property immediately upon the death of a sole owner or the last to die of all multiple owners.
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