TODD Attorney San Antonio TX
A Transfer on Death Deed (TODD), also known as a Beneficiary Deed, is a unique estate planning tool that allows real estate owners to transfer property to beneficiaries without the need for probate. This straightforward deed is a powerful way to ensure that your real property passes directly to the people you care about after your death, all while avoiding the lengthy and costly probate process.
What is a TODD (Transfer on Death Deed)?
A Transfer on Death Deed (TODD) is a legal document that enables the owner of real property to designate a beneficiary who will inherit the property after the owner’s death. Unlike traditional wills or trusts, the TODD transfers ownership of the property outside of probate. The deed simply names one or more beneficiaries and takes effect upon the property owner’s death, with no immediate transfer of ownership while the owner is still alive.
The TODD is an easy-to-understand and cost-effective way to avoid the complexities of probate while ensuring that your property goes directly to your chosen heirs.
How Does a TODD Work?
- Designate a Beneficiary: You, as the property owner, sign a TODD that names one or more beneficiaries who will inherit the property upon your death.
- Keep Control of Your Property: Until your death, you remain the sole owner of the property, retaining full control to sell, transfer, or otherwise change the property’s status. The TODD does not affect your rights during your lifetime.
- Death of the Owner: When you pass away, the property automatically transfers to the named beneficiaries, without the need for probate. The beneficiary simply provides a certified copy of your death certificate to the relevant authorities to finalize the transfer.
- Possible Revocation or Change: If you change your mind, you can revoke or update the TODD at any time, as long as you are still alive. This flexibility allows you to adjust your estate plan if needed.
What Can a TODD Cover?
A TODD applies specifically to real property, including single-family homes, multi-family homes, vacant land, commercial real estate, and condos or townhouses. It is designed to transfer ownership of real estate directly to beneficiaries upon the property owner’s death, without the need for probate.
It’s important to note that a TODD only applies to real estate. Other assets, such as bank accounts, vehicles, and personal property, cannot be transferred via a TODD. Separate estate planning documents, such as a Will or Trust, would be necessary for those types of assets to ensure they are properly distributed according to the decedent’s wishes.
Who Needs a TODD?
A TODD may be a good option for property owners who want to simplify the transfer of real estate after their death, particularly for individuals who:
- Want to Avoid Probate: If you wish to bypass the probate process, a TODD provides a straightforward way to pass property directly to beneficiaries.
- Have Real Estate to Transfer: If you own real estate and want to ensure it’s passed on to specific heirs, a TODD allows you to name beneficiaries who will inherit your property.
- Want Flexibility: A TODD allows you to retain full control over the property during your lifetime while still planning for its future transfer.
- Prefer Simplicity: If you’re seeking a simple, cost-effective method for transferring real estate without creating a complex estate plan, a TODD may be the right tool.
TODD vs. Traditional Estate Planning
A TODD is a powerful tool for transferring real estate but doesn’t replace other estate planning documents. Here’s how it compares:
- TODD vs. Will: A will requires the property to go through probate, potentially causing delays and expenses. In contrast, a TODD transfers property directly to beneficiaries without probate.
- TODD vs. Trust: A trust provides broader estate planning, covering more assets, and allows for more control over the distribution of assets. However, a TODD is simpler and less costly, making it a good option for those with just real estate to transfer.
- TODD vs. Joint Ownership: Joint ownership, like joint tenancy with right of survivorship, automatically transfers property to a co-owner upon death. However, a TODD allows you to name beneficiaries who aren’t necessarily co-owners, offering more flexibility in how you distribute property.
Contact Carroll Law Group for Your TODD
Contact Carroll Law Group to learn more about how a TODD can simplify the transfer of your real estate and help you plan for the future. Let us help you make the right choices for your property and your family.