Transfer on Death Deed: Streamlining Succession Planning
We’ve been getting a lot of questions lately about the new Transfer on Death Deed (TOD). This statute went into effect in early 2016. The TOD Deed allows Californians to sign a deed transferring real property to another individual upon their death. The deed is revocable until the transferor’s death. Eligible property includes: Condominiums. One to four residential dwelling units. A single tract of agricultural land consisting of 40 acres or fewer that is improved with a single-family house. Upon the death of the transferor, the TOD Deed transfers all of the transferor’s interest in the real property to the beneficiary. If there are multiple beneficiaries, the beneficiaries take the property as tenants in common (TIC), in equal shares. What’s to like about the TOD Many people are creating a TOD Deed for their homes or other real property and circumventing having to create a Living Trust . In these cases, their home represents the biggest share of their assets, so by...