The UTODSRA is a legislation that enables individuals to designate the recipients of their securities, such as stocks and bonds, upon their death. This eliminates the need for probate, a lengthy legal procedure. The owner of the securities retains control over them until their passing and can modify the inheritance designation at any point using a transfer-on-death or payable-on-death clause on the account.
The Uniform Transfer-on-Death Securities Registration Act (UTODSRA) is a legislation that enables individuals to designate beneficiaries for their stocks, bonds, bank accounts, or other securities upon their death. This eliminates the need for probate, a time-consuming and costly legal procedure. Through UTODSRA, individuals can establish a transfer-on-death (TOD) or payable-on-death (POD) clause on their accounts. This ensures that they retain ownership and control of the securities until their demise, at which point the designated beneficiary automatically assumes ownership. For instance, if John possesses a brokerage account with stocks valued at $100,000, he can designate his daughter, Sarah, as the beneficiary through a TOD or POD clause. In the event of John’s death, Sarah will become the new owner of the stocks without the requirement of probate. Similarly, if Mary has a savings account with $50,000 and wishes for her son, Tom, to inherit the funds, she can establish a TOD or POD clause designating Tom as the beneficiary. Upon Mary’s death, Tom will automatically become the new owner of the savings account without the need for probate. Overall, UTODSRA serves as a valuable tool for individuals seeking to simplify the transfer of their securities to their loved ones after their passing.
The UTODSRA is a law that allows individuals to transfer ownership of their securities to a designated beneficiary upon their death without the need for probate.
The UTODSRA applies to most types of securities, including stocks, bonds, mutual funds, and other investment vehicles.
You must complete a transfer-on-death registration form with your broker or financial institution, designating the beneficiary of your choice.
Yes, you can change your designated beneficiary at any time by completing a new transfer-on-death registration form.
If you don’t designate a beneficiary, your securities will be subject to probate and distributed according to your will or state law.
Yes, you can designate multiple beneficiaries and specify the percentage of the securities each beneficiary will receive.
If your designated beneficiary dies before you, you will need to designate a new beneficiary or your securities will be subject to probate.
Yes, you can revoke your transfer-on-death registration at any time by completing a revocation form with your broker or financial institution.
No, the UTODSRA only applies to individual accounts.
No, not all states have adopted the UTODSRA. However, many states have adopted similar laws that allow for transfer-on-death registration of securities.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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- Modern Language Association (MLA):Uniform Transfer-On-Death Securities Registration Act. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/uniform-transfer-on-death-securities-registration-act/.
- Chicago Manual of Style (CMS):Uniform Transfer-On-Death Securities Registration Act. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/uniform-transfer-on-death-securities-registration-act/ (accessed: May 09 2024).
- American Psychological Association (APA):Uniform Transfer-On-Death Securities Registration Act. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/uniform-transfer-on-death-securities-registration-act/
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