Miscellaneous

Transfer on Death Deed

A transfer on death deed is a newer legal instrument that allows a person to designate a beneficiary for his house or other real estate. It’s recorded with the county like a deed, so the beneficiary becomes the legal owner when the person dies; but unlike a quit claim deed or giving a life estate, it doesn’t affect the owner’s rights while alive. The property is still able to be sold, mortgaged, etc. (a new TOD deed just has to be done if you move) or the beneficiary can be changed at any time. The TOD deed only takes effect if the grantor owns it at death.

The benefit of doing such is simplifying the transfer. Probating an estate through the court system when someone dies costs $3,000+ easily in court costs and legal fees. But by designating beneficiaries on policies, accounts, and real estate, those items transfer automatically on death according to the designations and are not part of the estate, eliminating the need to do much if any legal work when someone dies.

If you are interested in having a transfer on death deed prepared, I would love to help you with that. Please feel free to contact me at mminer@ak-law.com if you have any further questions or to get started simplifying things for your family today.