What is a transfer-on-death (TOD) designation on a brokerage account?

A transfer-on-death (TOD) designation names who inherits your taxable brokerage account when you die, letting it pass directly to those beneficiaries without going through probate. It's free to add, takes minutes online, and overrides whatever your will says about that account — so keep the two consistent. You retain complete control while alive; the beneficiary has no access until your death. You can name multiple beneficiaries with percentage splits and add contingent beneficiaries in case a primary one predeceases you. TOD is one of the simplest estate-planning tools and works alongside the beneficiary designations already built into IRAs and 401(k)s. Review these designations after any major life event — marriage, divorce, a birth, or a death. To see where your plan stands overall, try our estate-readiness assessment at wealthserene.com/assessments/estate-readiness.