If you’re like most people, you’ve worked hard your whole life for your assets. As such, ensuring you plan for the future, not only to protect your assets but also your Beneficiaries, is critical! Many people assume that as long as they have a Will, they’re all set. While a Will is critical, you’ll find that there are a number of other documents you can utilize to help ensure your wishes for the future are met. One such option is a Transfer-On-Death Deed. Not sure what this tool does or what the benefits are? The following blog explores what you should know about these matters and why working with a Medina County, Ohio estate planning lawyer.
What Is a Transfer-On-Death Deed?
A Transfer-On-Death Deed is an estate planning tool that allows for the immediate transfer of property from one party to another upon their passing. As such, upon your death, the named Beneficiary becomes the legal owner of the property. It’s important to note that until death, the assets owner reserves the right to change or revoke the deed. Additionally, the inheritor has no right to the property before the death of the owner. It’s important to note that you are eligible to name multiple beneficiaries for a Transfer-On-Death Deed if you so choose.
Ohio is one of 29 states that currently recognize TOD deeds, and allows you to transfer various kinds of assets and properties using this tool. Assets you can utilize a TOD for include but aren’t limited to, bank accounts, real estate, vehicles, and life insurance policies.
What Are the Benefits of This Option?
One of the primary benefits of creating a TOD deed is that it can help your loved ones avoid the Probate process. When you pass away, your estate will undergo the Probate process. Essentially, your Beneficiaries are responsible for submitting your Will to the Probate court, which will then validate the document and oversee the distribution of assets in accordance with the terms and conditions you’ve established. Probate can be a time-consuming, lengthy, and expensive process to navigate, and many look for ways to circumvent this. Additionally, assets that belong to Beneficiaries can be frozen
Creating a TOD allows the assets held by this Deed to sidestep Probate. Because the assets are immediately transferred upon the passing of the asset owner, it is not necessary for these assets to undergo Probate. In addition, you’ll find that utilizing a Transfer-On-Death Deed helps bypass the federal gift tax, as you are naming a beneficiary rather than performing an immediate transfer.
As you can see, taking the time to protect your estate is critical. However, it can be incredibly difficult to navigate this process, and setting up your TOD Deed can be difficult to navigate, which is why it’s in your best interest to connect with an experienced attorney with Krause Law. Our team knows that estate planning can be complex, which is why we can help you explore all your options to make the most informed choices possible. Contact us today to learn more.
