SIE practice questioneasyTransfer on Death (TOD) Accounts
What is a primary benefit of a Transfer on Death (TOD) account registration?
- AAssets are shielded from all taxes
- BAssets avoid probate and pass directly to beneficiaries✓ Correct answer
- CAssets can be traded without restrictions
- DAccount is only for minors
Explanation
Why B — Assets avoid probate and pass directly to beneficiaries
A TOD registration allows assets to pass directly to beneficiaries without going through probate. It does not shield assets from taxes, remove trade restrictions, or limit usage to minors.
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