The Florida Probate Trap: Why Your "Transfer on Death" Account Might Fail

Are TOD and POD accounts guaranteed to avoid Florida probate?

No, not anymore. While Transfer on Death (TOD) and Payable on Death (POD) accounts are specifically designed to bypass probate by passing assets directly to beneficiaries, we are seeing a rapidly increasing frequency in Florida where these accounts fail. This failure forces the estate into the court process, costing heirs time and legal fees.

The primary cause is not a flaw in the law, but an administrative failure by financial institutions: they often lose the original, signed beneficiary designation paperwork during mergers or system transfers, rendering the TOD status invalid.

The Hidden Trap: When "On File" Doesn't Mean "On File"

At atCause Law Office, we’ve noticed a frequent and frustrating trend for our estate planning and probate clients. You might have your account "wrapped up beautifully"—a Lady Bird deed for the home, a trust for the assets, and TODs for the rest. But there is a specific vulnerability in investment accounts that can cost your family thousands in legal fees.

The "Magic Paper" Scenario

Imagine an investment account with hundreds of thousands of dollars. The owner filled out the paperwork years ago, naming her two sons as the recipients.

• The Evidence: Every quarterly statement lists the owner's name, followed by "TOD" and the sons' names.

• The Reality: When the owner passes, the bank claims they never received the "magic piece of paper" (the original signed form).

• The Result: Because the bank cannot "locate" the internal designation, they ignore the statement and demand a Court-Appointed Personal Representative.

3-Step Protection Plan for Your Assets

To ensure your family isn't stuck in the Florida probate process for months, you must be proactive.

1. Demand Written Confirmation (Not Just Statements)

Don't rely on your quarterly statement. When you set up a POD or TOD, or add beneficiaries online:

• Ask for a formal letter or email from the institution confirming the names are officially in their system.

• Save a copy of the original form you signed or the digital confirmation page.

2. The "Transfer Re-Check"

Financial institutions merge and change names constantly.

• The Risk: During a merger, "everything" is supposed to transfer, but beneficiary forms are often lost in the shuffle.

• The Action: If your bank merges or you move your money, call them immediately. Ask: "Do you have my original TOD form on file? If not, what do I need to sign today to re-confirm my beneficiaries?"

3. The "Non-Stuffy" Audit

If you are the beneficiary (the child), help your parents make these calls. A ten-minute phone call today can save several months of court delays and thousands of dollars in Florida probate attorney fees later.

Florida Probate & Asset FAQ

What is the difference between POD and TOD?

POD (Payable on Death) typically refers to bank accounts (checking/savings), while TOD (Transfer on Death) is the term used for brokerage and investment accounts. Legally, they serve the same purpose: keeping the asset out of probate.

Can a bank ignore the "TOD" listed on my statement?

Yes. If the bank's internal legal department cannot find the authorized signature form, they will treat the account as having no beneficiary. This automatically triggers a requirement for a probate administration under Florida law.

What should I do if the bank says I need probate for a TOD account?

Contact us and schedule a free consultation immediately. There may be legal actions available to prove the intent of the account holder, though in many cases, a "Summary Administration" or "Formal Administration" may be required to move the funds.