Simple Estate Gifts from Financial and Brokerage Accounts

Vivian and Sally were sisters who maintained a joint savings account.  After Vivian died, Sally became the sole owner of the account.  Sally would like to arrange matters so that, when she dies, anything left in the savings account will be used to advance our programs, as a memorial to herself and Vivian.

Sally asked the manager of her bank what procedure would be appropriate for making an organization the death beneficiary of her account.  Generally speaking, it's possible to pass bank account proceeds to an individual or organization without making or changing a will.  So-called P.O.D. (pay on death) accounts allow you to name a beneficiary of almost any financial account:  savings, checking, building and loan accounts, credit union savings, certificates of deposit, etc.  You can indicate that your deposit will be "payable on death" to any charitable, educational or religious organization and keep the right to change or revoke the arrangement at any time.

Securities that are being held for you in a brokerage account can be transferred for our benefit at death through a "T.O.D" (transfer on death) designation.  Your broker can provide you with simple forms.  Securities transferred for our benefit avoid all income taxes and death taxes and pass outside probate, as well.  Note that we can be named to receive 100% of a P.O.D. or T.O.D. account or a smaller percentage, with the remainder passing to other beneficiaries.

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