Transfer on Death Deed:
Transfer on Death Deeds transfer property after death of the owner.
How it works: The owner of real estate executes a Transfer on Death Deed and files it in the county where the property is located. When the owner dies the beneficiary files a Transfer on Death Affidavit and receives the same title that the previous owner had.
- The named beneficiary is not granted an immediate interest in the land. Therefore, their financial problems or liens against them do not impact current property owner.
- The owner is free to sell, mortgage, and transfer the property without consent or notification to the beneficiary.
- The owner can revoke the deed if he no longer wants that beneficiary to receive it.
- There is no need for probate and it is not available to pay creditor’s claims.
- If the beneficiary does not act timely after the owner’s death the property becomes part of the owner’s estate and subject to probate.
- If the owner wants another beneficiary to receive the property the previous deed must be revoked.
- Difficult to name contingent beneficiaries.
- No Asset Protection for You or Heirs.
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