adding beneficary to stock trading account

TOD means "transfer on death." Yes, the account will automatically go to your son upon your death (and without probate) whether you have a will or not. Whether your will can override that result is a question of applicable state law. Generally, I would assume that the TOD designation is controlling.

MTW

Will or no will, TOD means the account goes to your son.

It is not automatic. Your son has to give Schwab a certified death certificate and fill out an account application if he wants to keep the account at Schwab.

TOD, POD, ITF and JTWROS designations ignore what any will specifies and avoid probate.

Check your state laws as TOD, POD and ITF may not be allowed in some states for specific bank/brokerage account types.

There are several ways to add someone to an account. In your case TOD is the best way. You are still the owner and can do whatever you want to with it while you are alive.

But when you die it automatically goes to your son. It doesn't matter what your will says because TOD supersedes the terms of a will.

This depends on applicable state law. In my state (Washington), an unambiguous statement in a will revoking TOD designations made PRIOR TO the will does prevail. I suppose appropriate language in the will might look like this: "I hereby revoke any TOD designations I may have made with respect to [identify specific account(s) or describe generally, such as "all my brokerage accounts"] and instead leave the as follows: [list heirs, etc.]."

Because of this it is indeed very important to make sure that your wishes are properly reflected, whether by will or by TOD/POD designations. It is easy to imagine how confusion can result. In some cases I've seen language in a will like this: "I have arranged to leave several of my accounts by way of TOD designations. This will DOES NOT revoke or supercede any such designations."

TOD designations made SUBSEQUENT to the will do, of course, prevail.

MTW