The Act provides that owners of securities may designate a transfer-on- death (TOD) beneficiary or beneficiaries. Upon the death of the owner or of the last survivor among multiple owners, ownership of securities registered in beneficiary form passes to the beneficiaries outside of the decedent's probate estate. Registration of securities in beneficiary form has no effect until the death of the owner or owners and may be canceled or changed at any time by the owner or owners. If no beneficiary survives all of the owners, the securities pass to the estate of the owner or the last survivor of multiple owners. The Act does not require dealers in securities to offer or to accept TOD registration and indemnifies them against all claims against the securities if the dealers satisfy the requirements of the Act.
Spence, Carl Jackson
"WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES Probate: Uniform Transfer on Death Security Registration Act,"
Georgia State University Law Review: Vol. 16
, Article 4.
Available at: http://readingroom.law.gsu.edu/gsulr/vol16/iss1/4