Understanding TOD & POD Designations

As your Gift Planning Officer, I'm excited to share information about two simple but powerful estate planning tools that can help you create a lasting legacy: Transfer on Death (TOD) and Payable on Death (POD) designations.

Understanding TODs and PODs

TOD (Transfer on Death):

• Investment accounts, stocks, bonds, life insurance, and mutual funds

• Not all securities or accounts are eligible

POD (Payable on Death):

• Bank accounts, CDs, and other cash deposits

• Different rules may apply for joint accounts

• May require special handling for business accounts

Key Benefits

1. Avoid Probate: Assets transfer directly to beneficiaries without court involvement

2. Maintain Control: You retain full ownership and control during your lifetime

3. Easy to Set Up: Simple forms available from your financial institutions

4. Flexible: Can be changed or revoked at any time during your lifetime

5. Cost-Effective: Usually no cost to establish or maintain

Real World Example: Seeing TOD in Action

Meet Mary, age 65, who has a $100,000 Vanguard investment account. With her children financially stable, she wanted to support Christian education while maintaining lifetime control of her assets. Her solution? A TOD designation splitting the account:

• 70% to her two children equally

• 30% to KML Foundation

This arrangement allows Mary to maintain full control during her lifetime while ensuring her legacy supports both family and ministry.

Critical Considerations

• TOD/POD designations override your will

• Multiple beneficiaries can be named with specific percentages

• Consider naming contingent beneficiaries in case primary beneficiaries predecease you

• Joint accounts may have special rules affecting TOD/POD designations

Essential Documentation Practices

1. Keep detailed records of:

   • All accounts with TOD/POD designations

   • Current beneficiary names and percentages

   • Dates of designation updates

   • Location of supporting documentation

2. Regular review triggers:

   • Marriage or divorce

   • Birth or death of beneficiary

   • Relocation to different state

   • Changes in estate planning goals

   • Account institution changes

Impact at KML and the Heritage Society

Did you know that your TOD/POD designation automatically qualifies you for membership in the KML Heritage Society? The Heritage Society is a special group of supporters who have included KML in their estate plans. Currently 123 members strong, the Heritage Society recognizes those who ensure Christian education continues for future generations through planned gifts.

Heritage Society members:

• Receive regular updates about KML's impact

• Get invited to special Foundation events

• Leave a lasting legacy of Christian education

By making a TOD/POD designation to the KML Foundation, you:

• Support student assistance

• Help grow our $3.4 million endowment

• Join the Heritage Society

• Create lasting educational impact

Taking Action

1. Review Your Accounts:

   • Identify eligible accounts for TOD/POD designations

2. Professional Consultation:

   • Review designations with estate planning attorney

   • Confirm alignment with overall estate plan

   • Consider tax implications

3. Documentation:

   • Request proper forms from financial institutions

   • Maintain copies of all designations

   • Create beneficiary notification file

   • Review and update regularly

Important Details for KML Foundation Designation:

• Legal Name: Kettle Moraine Lutheran High School Foundation

• Tax ID: 46-0506261

• Address: 3399 Division Rd. Jackson, WI 53037

Reach Out to Dylan

I'm here to help you understand how TOD/POD designations can fit into your overall legacy planning. We can connect you with qualified estate planning attorneys to ensure your designations align with your broader estate planning goals while supporting Christian education at KML.

Contact me to:

• Discuss TOD/POD options

• Learn about other giving opportunities

• Join the Heritage Society

• Connect with qualified estate planning professionals

Dylan RuschGift Planning OfficerEmail: dylan.rusch@kmlhs.orgPhone: 262-677-4051 x4093