Pay on Death (POD) and Transfer on Death (TOD) Defined
Kurt R. BachmanKurt R. BachmanIndiana law (“Transfer on Death Property Act” I.C. 32-17-14, et. seq.) recognizes non-probate transfers, and the right of designated beneficiaries to receive property of the owner at the death of the owner, where the designated beneficiary survives the death of the owner if the owner properly designated the beneficiary prior to death of the owner.
The difference between “Pay on Death” (POD) and “Transfer on Death” (TOD) is mostly semantics because “property” means any present or future interest in real property, intangible personal property, or tangible personal property.
The term specifically includes:
- Right to direct or receive payment of a debt;
- Right to direct or receive payment of money or other benefits due under a contract, account agreement, deposit agreement, employment contract, or trust or by operation of law;
- Right to receive performance remaining due under a contract;
- Right to receive payment under a promissory note or a debt maintained in a written account record;
- Rights under a certificated or uncertificated security;
- Rights under an instrument evidencing ownership of property issued by a governmental agency; and
- Rights under a document of title ( i.e., a beneficiary designation for the transfer on death of a motor vehicle or a watercraft). As such, the terms are often used interchangeably.
