Do you own “real” property? Are you looking for a way to avoid probate? If you answered yes to both questions, a transfer on death deed may be right for you. This simple document can help you inexpensively and efficiently avoid probate for real estate.
In the most basic of terms,this kind of deed allows you to designate one or more persons as beneficiaries. This person (or people) automatically becomes the owner of the property upon your passing.
Note: You can name either an individual or an organization, such as a non-profit or charity, as your beneficiary.
Transfer on Death Deed: The Advantages
There are many reasons to use this estate planning tool. These include but are not limited to:
- No probate: With a will, the property must go through the probate process before it’s transferred to the new owner. A transfer on death deed avoids probate, thus making for a faster and less costly transfer of ownership.
- You maintain full control of the property: While you’re living, a transfer on death deed allows you to maintain full control of the property. Conversely, if you add another person to the deed while you’re alive, they have the same power as you. For example, you can’t sell the property unless they agree on it.
- Maintain Medicaid eligibility: If you gift real estate to a beneficiary, it could disqualify them from receiving Medicaid and other government benefits. However, a transfer on death deed is not generally considered a gift.
Now that you understand what a deed of this type has to offer, it’s time to take the next step: deciding if it should be part of your estate plan. The best way to do so is to contact our law firm online or via phone at (817) 899-3286 to schedule a consultation.