There are some specific criteria that a person should be aware of when considering recording a revocable transfer on death deed.
The real property must be a single family home or condominium unit, or a multiple residence of not more than 4 residential dwelling units, or be a single family residence on no more than 40 acres of agricultural land.
A revocable TOD deed must be signed and dated before a notary public to be effective and valid.
The transfer on death deed must be recorded within 60 days or less from the date it is signed.
The transfer on death deed can be revoked by the transferor at any time.
A transfer on death deed may be a great option for a person whose only asset is the home in which he or she lives.
Please share this information with those in your Association. This is particularly important for those that do not have a will or a trust.
See Lynn in the Friendly Valley Office for a Form to fill out.
ADDITIONAL INFORMATION A TOD can also be used for your bank accounts, retirement accounts, securities, and vehicles, without probate.
Payable-on-Death Bank Accounts Payable-on-death bank accounts offer one of the easiest ways to keep money -- even large sums of it -- out of probate. All you need to do is fill out a simple form, provided by the bank, naming the person you want to inherit the money in the account at your death. As long as you are alive, the person you named to inherit the money in a payable-on-death (POD) account has no rights to it. You can spend the money, name a different beneficiary, or close the account. At your death, the beneficiary just goes to the bank, shows proof of the death and of his or her identity, and collects whatever funds are in the account. The probate court is never involved. If you and your spouse have a joint account, when the first spouse dies, the funds in the account will probably become the property of the survivor, without probate. If you add a POD designation, it will take effect only when the second spouse dies.
Retirement Accounts When you open a retirement plan account such as an IRA or 401(k), the forms you fill out will ask you to name a beneficiary for the account. After your death, whatever funds are left in the account will not have to go through probate; the beneficiary you named can claim the money directly from the account custodian. Surviving spouses have more options, when it comes to withdrawing the money, than do other beneficiaries. If you're single, you're free to choose whomever you want as the beneficiary. If you're married, your spouse may have rights to some or all of the money.
Transfer-on-Death Securities Registration Almost every state has adopted a law (the Uniform Transfer-on-Death Securities Registration Act) that lets you name someone to inherit your stocks, bonds or brokerage accounts without probate. It works very much like a payable-on-death bank account. When you register your ownership, either with the stockbroker or the company itself, you make a request to take ownership in what's called "beneficiary form." When the papers that show your ownership are issued, they will also show the name of your beneficiary. After you have registered ownership this way, the beneficiary has no rights to the stock as long as you are alive. But after your death, the beneficiary can claim the securities without probate, simply by providing proof of death and some identification to the broker or transfer agent. (A transfer agent is a business that is authorized by a corporation to transfer ownership of its stock from one person to another.)
Transfer-on-Death Registration for Vehicles California offers car owners the sensible option of naming a beneficiary, right on their certificate of registration, to inherit a vehicle. If you do this, the beneficiary you name has no rights as long as you are alive. You are free to sell or give away the car, or name someone else as the beneficiary. To name a transfer-on-death beneficiary, you'll need to fill out the paperwork required by your state's motor vehicles department.