What is the difference between POD, TOD and ITF?

What is the difference between POD, TOD and ITF?

Attorney Tom Olsen: Danny from Belle Isle. Danny says, "I want to avoid probate on my bank accounts. What's the difference between making them POD and TOD?" What do those things stand for?

Attorney Chris Merrill: Danny, the good news is, they mean the same. TOD means transfer on death. POD, payable on death. Even though they are different words, they mean the same. It's just that different financial institutions have those different words, but they both mean the same, which is you are naming a beneficiary or beneficiaries on those particular financial accounts. If you do, do that, whether it is POD, payable on death, or transfer on death, if you do, do that, that does avoid probate.

Attorney Tom Olsen: That's a great easy tool for avoiding probate on bank accounts, checking, savings, CDs, money market, investment, non-IRA accounts. You can avoid probate by making them POD, payable on death to your kids, TOD, transfer on death, ITF, in trust for. They're all the same thing. It just depends on which terms your bank happens to use.

Attorney Chris Merrill: Exactly. Different financial institutions use different terms, but they all-- You're correct, Tom, thank you. All three mean one and the same.