A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Transfer-on-Death (TOD)A designation that passes an asset like a brokerage account or vehicle straight to a named person at death, skipping probate.
- Beneficiary DesignationThe named person who inherits your retirement account, which overrides your will for that account when you pass away.
- BeneficiaryA person or entity you choose to receive assets from a will, trust, account, or insurance policy.
- ProbateThe court process that validates a will, pays debts, and distributes property after someone dies.
- Contingent BeneficiaryA backup recipient who inherits only if your first-choice beneficiary cannot or will not accept the assets.
- Living TrustA legal arrangement you create while alive to hold your assets, letting them pass to heirs without going through probate.
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Plain-English education — not personalized legal, tax, or investment advice.