What is a Transfer on Death Deed?
Setting up real estate to be transferred upon your death can be efficiently handled through a Transfer on Death Deed (TODD). This method has become popular in numerous states for passing along a home after the owner's death, bypassing the need for probate.
A Transfer on Death Deed allows homeowners to assign their real estate to a designated beneficiary, effective only upon the homeowner's death. This deed functions similarly to a beneficiary form for financial accounts, offering the flexibility to alter the beneficiary at any point during the homeowner's lifetime without affecting current ownership rights.
Key points of Transfer on Death Deeds:
- The deed must be executed and recorded in the property’s county during the homeowner's lifetime to be valid.
- It is inherently revocable; changes, including complete revocation, must also be recorded during the homeowner's life.
- Transfer on Death Deeds adhere to specific state and local requirements regarding the format, content, and recording procedures, which include the necessary signing, witnessing, and notarization.
- Selecting the appropriate form that complies with local and state laws is crucial for making a Transfer on Death Deed valid. These forms are available for download and can be filled out and printed using your computer.
- It is advisable to complement a Transfer on Death Deed with a well-drafted will, which can reinforce the homeowner’s estate plans and ensure all assets are appropriately managed after death.
- Avoids Probate: The property transfers directly to the beneficiary, bypassing the probate process.
- Maintains Control: The homeowner retains full control over the property during their lifetime, including the right to sell or mortgage it.
- Flexibility: The deed can be revoked or changed at any time during the homeowner's life.
- Complexity: Some states have specific requirements for creating and revoking the deed, which can be complex.
- Potential for Disputes: If the deed is not properly executed or if there are conflicting estate plans, it may lead to legal disputes.
- Not Available Everywhere: Not all states recognize Transfer on Death Deeds.
A homeowner can revoke a Transfer on Death Deed anytime before death by selling the property, recording a revocation, or creating a new deed that explicitly revokes previous ones.
More Information About Transfer On Death Deeds
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Note: Deeds.com does not provide legal advice. This information is general and may vary by state. Consult a real estate lawyer for legal advice specific to your situation.
