Do TOD stock proceeds have to be used to settle a deceased’s estate?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Do TOD stock proceeds have to be used to settle a deceased’s estate?
My dad recently passed away. He signed a TOD form for stock naming me as beneficiary. We will soon probate his estate as he did not have a Will. Do the stock proceeds have to go towards my his debts?
Asked on August 3, 2019 under Estate Planning, Texas
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
Only assets of an estate need be used to settle debts of the deceased. And payable-on-death bank accounts (POD's) offer one of the easiest ways to keep money out of an estate and thus out of probate. So long as a person is named to inherit the money in such an account it alive, the estate has no rights to it. The beneficiary can spend the money as they see fit.
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
Only assets of an estate need be used to settle debts of the deceased. And payable-on-death bank accounts (POD's) offer one of the easiest ways to keep money out of an estate and thus out of probate. So long as a person is named to inherit the money in such an account it alive, the estate has no rights to it. The beneficiary can spend the money as they see fit.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.