What does a TOD Deed entail?
A Transfer on Death (TOD) deed bears resemblance to other real estate deeds by identifying the current property owner, presenting the precise legal property description, and specifying the chosen recipient of the property (referred to as the "grantee" or "beneficiary"). However, a TOD deed includes an additional provision explicitly stating that its effects will only come into play upon the demise of the current owner.
Until your death, or the death of the last surviving co-owner if the property is jointly held with a spouse or someone else, the designated beneficiary holds no legal entitlement to the property. It is not obligatory for the beneficiary to sign, acknowledge, or even be informed about the deed, although it is generally advisable to inform them in advance.
Moreover, the TOD deed allows you to designate an alternative beneficiary who will inherit the property if your primary choice is not alive at the time of your death. Failure to designate an alternative, and if the primary beneficiary predeceases you, may lead to the property undergoing the probate process.
There is a lot more to this TOD Deed so, please contact us when you are ready.