Not every asset has to be in a trust to avoid probate. In Florida, certain accounts pass directly to a named beneficiary the moment you die — bypassing both your will and the probate court. Understanding which assets work this way, and where the approach breaks down, is essential to a plan that actually does what you intend.
What Are POD and TOD Accounts?
These are "non-probate transfers" — assets that move by contract or registration rather than through your will:
- POD (Payable on Death) — used for bank accounts and CDs. You name a beneficiary who receives the balance at your death.
- TOD (Transfer on Death) — used for brokerage and investment accounts. Florida authorizes TOD security registration under the Uniform Transfer-on-Death Security Registration Act, F.S. Chapter 711.
In both cases, the beneficiary simply presents a death certificate to claim the asset. There is no court filing, no statutory attorney fee, and no public record.
Other Assets That Pass by Beneficiary Designation
POD and TOD are part of a larger category. These assets also avoid probate when a valid beneficiary is named:
- Life insurance policies
- IRAs, 401(k)s, and other retirement accounts
- Annuities
- Certain Florida real estate via an enhanced life estate (lady bird) deed
The Golden Rule: Beneficiary Designations Override Your Will
This is the single most important — and most misunderstood — point. A valid beneficiary designation controls, no matter what your will says. If your will leaves "everything equally to my three children" but your largest account still lists only your oldest child as POD beneficiary, that child gets the account outright. The will never touches it.
Why Beneficiary Designations Are Not a Substitute for a Plan
Relying only on POD/TOD forms is one of the most common DIY estate-planning mistakes. They have real limits:
| Limitation | Why It Matters |
|---|---|
| No incapacity planning | A beneficiary form only operates at death — it does nothing if you become incapacitated |
| No control over how/when heirs receive | Assets pass outright, with no protection for young, spendthrift, or special-needs beneficiaries |
| No coordination | Each form is independent; together they can produce lopsided, unintended results |
| Contingency gaps | If the named beneficiary dies first and no backup is listed, the asset falls back into probate |
| Minors can't receive directly | Naming a minor can force a court guardianship of the property — the opposite of avoiding court |
Naming a Minor: A Common, Costly Error
If you name a minor as a POD or TOD beneficiary and you die while they are under 18, the funds cannot be paid to the child directly. A court may have to appoint a guardian of the property to hold the money until adulthood — triggering the exact court involvement you hoped to avoid, and handing a lump sum to an 18-year-old. For minor beneficiaries, a trust is almost always the better answer.
How Beneficiary Designations Fit a Florida Plan
Used correctly, POD/TOD designations are a useful layer — not the whole structure. In a well-built Florida plan, they are coordinated with your trust and will so that the right assets pass the right way. A revocable trust remains the centerpiece for control, incapacity planning, and protecting beneficiaries, while beneficiary forms handle assets like retirement accounts that pass best by designation.
Frequently Asked Questions
Related Reading
- The Florida Lady Bird Deed — how to pass a Florida home outside probate.
- The Florida Revocable Living Trust — the centerpiece of most plans.
- Trust vs. Will in Florida — how all the pieces fit together.
Make Sure Your Assets Pass the Way You Intend
Cornerstone coordinates your beneficiary designations with your will and trust so nothing falls through the cracks — reviewed by Arthur Simpson, Esq. Start online, statewide across Florida.
Start Your Florida Plan →This article is for general informational purposes and does not constitute legal advice. Estate planning is highly fact-specific. Consult a licensed Florida estate planning attorney regarding your individual circumstances. Arthur Simpson, Esq. is licensed to practice law in the State of Florida.