For instance, personal assets such as cars, real estate and personal possessions are not covered under the TOD Agreement. In itself, TOD does not replace a will or a trust. Rather, it is meant to complement a comprehensive estate plan that includes either a will or a trust, or both. Return to top. TOD does not alleviate the burden of estate taxes While TOD may establish cash and securities to bypass probate, it has no effect on the tax liabilities associated with an estate.
Beneficiaries remain responsible for any estate taxes.
However, by taking full advantage of the deductions, credits and estate planning tools that are available, estate taxes can be minimized. You should consult with your attorney or accountant to discuss possible tax implications. Return to top. Limited partnership interests, precious metals, variable annuities, fixed annuities, commodities, jumbo certificates of deposit and mutual funds not held at Raymond James are ineligible. Return to top.