Transfer on death (TOD) is terminology used in the United States for an arrangement that can direct eligible securities to a beneficiary after the owner’s death. It is not a general Australian entitlement to transfer shares, property or bank balances outside an estate by filling in a nomination.
Correction, 19 October 2026: The previous article asserted Australian state pilot schemes, new ASIC guidance, probate exemptions and a purported customer case without supporting evidence. Those assertions and the case have been removed. This article now distinguishes the US concept from the Australian documents and processes that need to be checked.
What the US term describes
The US Securities and Exchange Commission’s Investor.gov glossary describes TOD registration as a way of passing securities to another person or entity after death without going through probate in the relevant US arrangement. That source is about US securities terminology. It does not establish Australian registry facilities or Australian succession-law treatment.
An overseas brokerage account may involve its own beneficiary rules. Ask the institution which assets are eligible, which jurisdiction governs the arrangement and what documents a beneficiary must provide. Obtain cross-border advice where the owner or beneficiary lives elsewhere.
What Australian investors should establish
Identify the legal owner of each asset and the institution or registry that keeps the records. Ask that institution for its current deceased-estate transfer process. Do not assume that a contact person, account operator or online beneficiary field has the legal effect of a US TOD registration.
For bank accounts, NAB and Westpac publish deceased-estate procedures that describe their documentation and account processes. For securities or property, ask the relevant registry or institution and an estate lawyer about that asset’s ownership and succession requirements. A bank’s process cannot establish how a shareholding or property title transfers.
Separate the documents and their jobs
A will, an executor’s authority, joint ownership and a superannuation nomination are different arrangements. Their effect depends on the applicable framework. A power of attorney addresses authority during life; it is not a general instruction determining inheritance after death.
Do not assume an overseas designation overrides an Australian will, removes all probate requirements or determines tax treatment. These are questions for qualified advice about the actual assets and jurisdictions.
Questions to take to an adviser
- Who legally owns each asset, and where is it held?
- What transfer process does the institution or registry actually offer?
- What documents would the executor or beneficiary need?
- How does the arrangement interact with the will and any joint ownership?
- Is cross-border legal or tax advice needed?
Keep records of account numbers and ownership safely accessible to the appropriate person. Review the plan after changes in family circumstances or asset ownership. A promise that every beneficiary will receive assets within a fixed number of weeks is not a substitute for checking the process.
Sources
- US SEC Investor.gov: transferring assets
- ASIC Moneysmart: wills and powers of attorney
- NAB: account impacts after a death
- Westpac: deceased-estate support
General information only. Ask an appropriately qualified lawyer about the actual estate and jurisdiction.