A transfer on death deed conveys the ownership of a piece of real estate automatically upon the owner’s death.
- Conveying real estate upon the death of the original owner
- Conveying property as part of an estate plan.
If you are buying or selling real estate, you will be dealing with deeds. The purchase, sale, or encumbrance of real estate must be accomplished by the transfer of a deed, and different deeds come with different rights and liabilities for the parties involved. If you are involved in a real estate transaction as a part of your estate planning, consider using this interactive form to create a transfer on death deed to create a document that meets all of your needs.
A transfer on death dead allows the owner of a piece of real estate to name a beneficiary who receives title to the property automatically upon the owner’s death. A transfer on death deed can be a part of your estate plan if you are concerned about tax liability. Because the transfer on death deed is usually written to convey the property as a gift or for nominal value, it can be a useful tool for conveying property without estate or property taxes. Also, because the beneficiary has no interest in the property until the current owner dies, the beneficiary’s creditors cannot put a lien against the property during the owner’s lifetime.
Transfer on death deeds can be more complicated than they seem. For example, plans for succession must be made in case the beneficiary’s death predates the owner’s death. An attorney should be consulted before entering into a transfer on death deed to make sure that common pitfalls are avoided.