Dear Liz: My goal is to avoid probate and allow simplified access for my heir, who is also my executor. I have no family. I have chosen payable-on-death and transfer-on-death accounts instead of putting all financial assets in my trust, against the wishes of the attorney who drew up the trust for my condo. I am 79, with about a million in financial assets, with no debt or mortgage, and I am self-insured for long-term healthcare. Is the decision to use these accounts appropriate for me?
Answer: Please take the advice you paid for. The trust you have is probably a living trust, a flexible estate-planning device that avoids probate. Living trusts generally allow a smoother, more organized settlement of the estate than other probate-avoidance options.
The person who settles your estate is called your successor trustee and will perform much the same duties as an executor. But typically your successor trustee also can handle financial and other matters should you become incapacitated.
As covered in previous columns, payable-on-death and transfer-on-death accounts can be appropriate solutions for people with few assets who can’t afford to pay for a living trust. For more complex estates like yours, however, a living trust is the more appropriate option.
I was perplexed by your column in the 13 July 2025 San Diego Union Tribune (similar to above) in which you poo-poo’d POD and TOD accounts in favor of trusts.
But you gave no specific explanation. Rather you said trusts “generally allow a smoother, more organized settlement of the estate than other probate-avoidance options.” Would you please explain what is smoother and more organized than POD and TOD transfers (Beneficiary Deeds fall into the same category as POD and TOD, to my way of thinking.)
A POD/TOD/Beneficiary Deed transfer simply involves a copy of the death certificate and some minimal paperwork. What could be simpler than that?
Perhaps I am missing something. Please advise.
Thank you!