FOR YOUR INFORMATION
THE TRANSFER ON DEATH (TOD) DEED
What is a Transfer On Death (TOD) Deed?
A "Transfer on Death" deed is a relatively new type of deed that avoids the problems associated with the life estate deed and yet allows one to designate another person as a beneficiary to receive the property upon his or her death without going through probate. The beneficiary of a Transfer on Death deed receives no rights or interest in the real property during the life of the owner. Therefore, the owner can sell the real property anytime without the permission of the beneficiary. Additionally, the designation of the beneficiary can be changed at any time by the owner, without the knowledge or consent of the beneficiary, by executing and recording a new deed.
Again, the Transfer On Death Deed (TOD) Deed does not establish a present ownership interest in the beneficiary named on the deed. You may change the deed, naming a new beneficiary or beneficiaries, at any time before your death.
How Does the Transfer On Death Deed Work?
The Deed passes the home to the beneficiary or beneficiaries without the need of a probate court.
Is the Transfer On Death Deed Different From Other Deeds?
There are significant differences between the Transfer On Death Deed and other deeds that are available.
Before making any decision concerning the filing of a Transfer On Death Deed, you may want to consult with family members, friends or a legal professional.
Can the designated beneficiary claim an interest in the real property before the owner dies?
No; the designated beneficiary has no rights during the owner's lifetime. The law specifically provides that a TOD Deed has no effect on the present ownership of real property, and a person designated as a Transfer-On-Death beneficiary has no interest in the real property until the death of the owner of the interest.
Can more than one beneficiary be designated?
What if the transfer beneficiary dies before the owner?