Uniform Transfer-on-Death Securities Registration Act (UTODSRA) is an act that enables people to designate beneficiaries to inherit their stocks, bonds, bank accounts or other securities without the need for probate. The registration process established by UTODSRA allows a security owner to arrange for the automatic transfer of ownership to a designated beneficiary upon his or her death. Ownership and control of the securities remain with the owner until his or her death, and the owner can change or cancel the registration at any time without the consent of the beneficiary. This process is usually accomplished by using a transfer-on-death (TOD) clause or a payable-on-death (POD) clause on the account.
[Last updated in October of 2021 by the Wex Definitions Team]