A Transfer on Death Deed (TOD Deed) is a legal document that allows property owners to pass real estate directly to a designated beneficiary upon their death, without the need for probate. This tool can be particularly useful for estate planning, as it simplifies the process of transferring property to loved ones and helps avoid the lengthy and often costly probate process.
Is a Transfer on Death Deed Revocable?
Yes, a Transfer on Death Deed is revocable. The transferor (the person making the TOD Deed) can revoke the deed at any time during their lifetime. This feature offers flexibility, allowing the transferor to make changes to their estate plan if circumstances change, such as if they wish to change the designated beneficiary or sell the property.
Essential Requirements for a Valid Transfer on Death Deed.
To ensure a Transfer on Death Deed is valid and enforceable, it must meet the following conditions:
- Contain the Essential Elements of an Inter Vivos Deed: The TOD Deed must include all the necessary components of a regular deed, such as a legal description of the property, the transferor’s signature, and proper notarization. These formalities ensure the deed is legally binding and recordable.
- State the Transfer Occurs Upon Death: The TOD Deed must clearly indicate that the property will transfer to the designated beneficiary upon the transferor’s death. This ensures that ownership remains with the transferor during their lifetime and avoids any confusion about when the transfer is intended to occur.
- Recordation in Public Records: The TOD Deed must be recorded in the county recorder’s office where the property is located before the transferor’s death. Failure to properly record the deed can invalidate the transfer, meaning the property may go through probate instead.
Conclusion.
A Transfer on Death Deed is a flexible, cost-effective estate planning tool that allows real property to pass smoothly to a beneficiary without the hassle of probate. It’s revocable, giving the transferor control over their property during their lifetime, and its requirements ensure the deed is legally enforceable. However, it’s essential to ensure the deed is properly executed and recorded to avoid any potential issues after the transferor’s death.
If you need assistance drafting or recording a Transfer on Death Deed, our experienced estate planning attorney at Ellsworth Law Firm can help guide you through the process.
