TOD Account in California: How to Protect Your Bank Account So Your Children Inherit It

One of the simplest changes you can make today to protect your family requires no attorney, costs nothing, and takes 15 minutes at your bank.

It's called TOD — Transfer on Death, and it's the easiest way to ensure that the money in your bank accounts goes directly to your children when you pass away, without probate, without court, without waiting.

What Is a TOD Account?

A TOD (Transfer on Death) designation is an instruction you add to your bank account that names who receives the money automatically when you die.

The account remains 100% yours while you are alive — you can spend it, move it, change the beneficiary, or remove the designation at any time. The beneficiary has no access while you live. Only at death does the designation activate.

How to Set Up TOD at Your Bank

1. 1.Go to your bank branch (or log into online banking if they allow it)
2. 2.Ask for a "beneficiary designation" or "TOD designation" form
3. 3.Fill in the beneficiary's full name, date of birth, and Social Security number
4. 4.Sign the form
5. 5.The bank updates the account — done

No attorney, no notary, no court. Free at most banks.

Who Can Be a Beneficiary?

• •Your children (including minors — though a minor cannot directly receive money, the funds are held until they turn 18)
• •Your spouse
• •Any adult person you trust
• •A trust (if you have a living trust, you can name it as beneficiary)
• •Multiple beneficiaries with specified percentages

What TOD Does NOT Cover

TOD only works for bank accounts — checking, savings, CDs. It does not cover:

• •Real estate (for that, use an RTOD Deed)
• •Investment accounts (those use a separate beneficiary designation)
• •Retirement accounts like 401k or IRA (those already have their own beneficiary system)
• •Physical property

For complete protection, combine TOD on accounts + living trust for real estate.

When the Beneficiary Collects the Money

After your death, the beneficiary simply goes to the bank with:

• •Their official ID
• •Your certified death certificate

The bank verifies and transfers the funds. No probate, no waiting, no attorney fees.

Frequently Asked Questions

What if my beneficiary dies before me? If you named only one beneficiary and they die before you, the money goes through probate. The solution: name multiple beneficiaries or a backup beneficiary (contingent beneficiary). Can I name a minor child? Yes, but a minor cannot directly receive money. The funds will be held by a court-appointed guardian until they turn 18 — which can be complicated. Better option: name a trust as beneficiary or name an adult trustee for the minor. Does my spouse automatically receive my money without TOD? Not necessarily. Community property in California has special rules, but individual accounts without a TOD designation may still require legal process for the surviving spouse to access. Does TOD avoid all taxes? TOD avoids probate but not estate taxes. For most families (estates under $12 million federally), there are no estate taxes. 👉 Create my Living Trust — complete protection for your family

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