More on Transfer on Death Deeds

In the August, 2006 edition of Bifocal (Vol. 27, No. 6), Nathaniel Sterling discusses the non-probate transfer of real property by Transfer on Death deeds in his article Legislative Interest in Transfer on Death Deeds Continues to Grow: State Efforts to Help Senior Homeowners.
   

Here is an excerpt:
   

Nine states have now enacted legislation authorizing a revocable transfer on death (TOD) deed of real property, also known as a beneficiary deed. The oldest and most complete statute is Missouri’s, enacted in 1989. The newest is Wisconsin’s, enacted in 2006. Other states are investigating the concept, including California and Utah. The National Conference of Commissioners on Uniform State Laws has decided to draft uniform legislation on the subject.
   

A property owner may use a revocable TOD deed to transfer property to a named beneficiary on the owner’s death. The property passes by operation of law outside probate, much like survivorship in joint tenancy. ***
   

It has been argued that the revocable TOD deed is preferable to an inter vivos trust in some circumstances. If the decedent’s only significant asset is the family home, the revocable TOD deed provides a simple, inexpensive, understandable means of passing the property to heirs without probate.