• Skip to primary navigation
  • Skip to main content
Mullooly Asset Management, Inc

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Services
    • Wealth Management
    • Financial Planning
    • Retirement Planning
    • Investment
    • Estate Planning
  • Our Fees
  • About
  • 732-223-9000
  • Schedule A Meeting

Services

  • Wealth Management
  • Financial Planning
  • Retirement Planning
  • Investment
  • Estate Planning

Quick Links

  • About
  • Our Fees
  • Videos
  • Podcasts
  • Blog

Support

  • Contact
  • Client Login
  • Pay Bill Online
  • Form CRS
  • Our Process
Follow us on Facebook
Follow us on Linkedin
Follow us on Twitter
Watch On Youtube

Let’s talk

Transfer on Death Accounts

August 4, 2014 by Thomas Mullooly

We’ve had a lot of people ask us if they can make an account “payable on death”. “Payable on Death” (or POD accounts) accounts are offered by banks. When the account’s owner passes away, the intended recipient can walk into the bank with their death certificate and take ownership of the account. In the financial industry there are no POD accounts.

Why are there no Payable on Death accounts? Good question! Technically, when an account is closed, assets are sold, and proceeds are paid out. When it comes to stock, that’s probably not what the original owner’s intention would be. They would want the recipient to have ownership of the stock, not for it to be sold, taxed, and distributed.

The financial industry has created Transfer on Death accounts for those who want somebody to continue owning their portfolio of securities. Transfer on Death accounts (or TOD accounts) work similarly to payable on death accounts, but instead of the assets being paid out they are simply transferred to a new owner. This allows the recipient to retain the securities held in the portfolio. A new account will be opened with the recipient’s name and social security number. There are no taxes or capital gains involved in the transfer.

One thing to remember about Transfer on Death accounts involves the cost basis of the portfolio’s securities. When you receive stock through a Transfer on Death account, you retain the cost basis of the original owner. This could potentially involve some capital gains. If you were to inherit the securities instead, your cost basis would be their value on the day of the original owner’s death.

A Transfer on Death account may or may not be right for you. To determine this you should absolutely speak with your investment advisor.

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Videos, Financial Planning

About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.

1971 State Route 34, Suite 102
Wall Township, NJ 07719

  • 732-223-9000
732-223-9600
  • support@mullooly.net
  • Services
  • About
  • Our Fees
  • Contact
  • Form CRS
  • Videos
  • Podcasts
  • Blog
  • Client Login
  • Pay Bill Online
  • Our Process

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

© 2022 Mullooly Asset Management Inc. All Rights Reserved.

  • Privacy
  • Disclosures and Legal Disclaimers
  • Privacy
  • Disclosures and Legal Disclaimers

© 2022 Mullooly Asset Management Inc. All Rights Reserved.