Utilizing A TOD On Real Estate To Avoid Probate

If you are like most Americans, the largest non-financial asset you will own at the time of your death will be your home.  When it comes to your estate plan, one way to transfer real estate, whether land, a house, or both, is through a bequest by will.  Real estate can also be transferred through use of a trust.  Indiana and Ohio offer an alternative option for those who wish to gift their real estate to specific individuals at the time of their death.  A Transfer on Death Deed allows owners of real estate to transfer real property outside of the probate process.

The real estate transfer on death option works much like the transfer on death or payable on death designations that banks and financial institutions utilize for the transfer of financial assets after death.  By executing and recording a Transfer on Death Deed, the owner of real estate can seamlessly transfer his or her property to a named beneficiary or multiple beneficiaries at the time of the owner's death.  During his or her lifetime, the owner retains ownership of the real estate.  Upon the death of the owner, ownership of the property can be transferred quickly to the beneficiary by simply recording an Affidavit of Death with the recorder of the county in which the real estate is located. 

Here are a few helpful facts about the transfer on death option for real estate transfers:

1. After executing and recording a Transfer on Death Deed, the owner retains full ownership of the property.  This means that the owner is not subject to eviction by the beneficiary and retains his or her homestead exemption.

2. The owner can still mortgage or sell the real estate during his or her lifetime even after making the transfer on death designation.  The sale of real estate cancels a transfer on death designation, but the owner can certainly make the designation on any new real estate purchased.

3. The transfer on death designation can be changed or removed from the owner's real estate at any time.

4. Real estate that transfers on death is transferred outside of the probate process upon the death of the owner, which can save time and money.

If you are looking for ways to avoid the probate process, a Transfer on Death Deed is a wonderful option to consider.