Understanding 'Transfer on Death' Deed

Overview of 'Transfer on Death'

When planning your estate, you may come across the term "Transfer on Death" (TOD). This guide explains what TOD is and how it can affect your estate planning.

What does 'Transfer on Death' mean?

"Transfer on Death" (TOD) is a beneficiary designation for certain assets, like real estate or financial accounts. This designation allows these assets to be transferred directly to a named beneficiary upon the owner's death, bypassing the probate process.

Does FastWill offer a Transfer on Death Deed?

No, we don't offer a TOD form as part of our Estate Plan. To create a TOD designation, please contact the county where the property is located for specific documentation and filing requirements.

Transfer on Death Deeds for Real Estate

In some states, Transfer on Death Deeds (TOD Deeds) are available for real estate properties. This option allows homeowners to directly transfer ownership of their property to a named beneficiary upon their death, bypassing the probate process.

Joint Tenancy:

Most states also offer Joint Tenancy, which provides a similar "Transfer on Death" effect but is limited to the current co-owner. When one co-owner dies, the property automatically transfers to the surviving co-owner.

Beneficiaries on Financial Accounts

"Transfer on Death" (TOD) beneficiaries are commonly designated for retirement accounts, life insurance policies, and many financial accounts. This ensures that the assets in these accounts are transferred directly to the beneficiaries, bypassing the probate process.

Impact on Wills and Probate

A key point to remember is that a Transfer on Death (TOD) designation overrides any beneficiary designations made in your Will. While TOD can often eliminate the need for probate, certain situations may still require it, such as paying outstanding debts or appointing guardians for dependents.