Potential Pitfalls in Avoiding Probate

Understanding Transfer on Death and Payable on Death Affidavits

When grieving the loss of a loved one, probate is a step that many people wish they could avoid.

Probate can be a lengthy, involved, and confusing process. And many might wonder if options are available that skip over the traditional probate process.

Transfer on Death (TOD) and Payable on Death (POD) affidavits are legal options for the distribution of property and money that do not have to go through probate. Additionally, both options result in a nearly instant transfer to beneficiaries upon the death of the owner. However, it is important to understand each type of affidavit as well as the unintended consequences of skipping probate.

Defining Transfers on Death and Payable on Death Affidavits

Transfer on Death (TOD): In Ohio, a TOD affidavit is used to transfer property such as a car or home to someone else upon their death, bypassing the probate process. In TOD, the owner retains ownership and control of their property until their death. The named beneficiary can be changed or the TOD dissolved at any point before the owner’s death..

Payable on Death (POD): A POD in Ohio relates to funds in a bank account and functions like a TOD in that it is not processed through probate, can be changed, the owner retains control until their death, and is a legally binding document. It is important to note that PODs are not exempt from covering outstanding debt at the time of the owner’s death..

Pros and Cons of TODs and PODs

Can TODs and PODs Be an Alternative to Probate?

While the wishes in these legal affidavits can be executed without probate, they cannot fully replace the probate process.

Probate is a process that extends beyond the reach of TOD and POD affidavits. Leaving no other directives upon one’s death can mean relatives are faced with a lengthier and more complex probate process.

TODs and PODs work best when part of a larger estate plan and an estate planning attorney can ensure all documents are properly completed and filed with the court.

Determining If a TOD or POD Is Right For You

Many individuals want to eliminate the probate process for their surviving family and friends. TODs and PODs are tools that can eliminate probate, but they should not be used in place of an estate plan.

If you have property or funds you wish to be transferred immediately following your death, a TOD or POD might be a good option. They can be included in a larger estate plan the includes a Will, account information, end of life care, and funeral arrangements.

For help in determining if a TOD or POD is right for you and your family, feel free to reach out to an estate attorney in Cincinnati who specializes in the probate process. Probate lawyers are well-equipped to answer any questions you have and work with you to make probate a simpler process for your loved ones.