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.

Advantages:

• 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.

Disadvantages:

• 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.

Find out if they are right for you:  405.340.6554