A more thorough explanation:

TOD (Transfer-on-death) is a legal arrangement that allows a property owner to name beneficiaries who will receive their assets after their death without the need for probate. This is often done through a TOD deed. The beneficiaries can be individuals or organizations, and alternate or successor beneficiaries can also be named in case the first beneficiary dies. However, beneficiaries do not have access to the assets until the property owner dies.

The Uniform Transfer-on-Death Securities Registration Act allows owners to designate beneficiaries for their stock, bond, or brokerage accounts. In some states, vehicles and real estate can also be transferred by TOD.

• John owns a house and wants to ensure that his daughter, Sarah, inherits it after his death. He creates a TOD deed that names Sarah as the beneficiary. When John dies, the house automatically transfers to Sarah without the need for probate.
• Mary has a brokerage account and wants to leave it to her son, Tom, after her death. She designates Tom as the TOD beneficiary for the account. When Mary dies, the account transfers to Tom without the need for probate.

These examples illustrate how TOD can simplify the transfer of assets after a person's death. By naming beneficiaries, the property owner can ensure that their assets go to the intended recipients without the need for a lengthy and expensive probate process.