Estate Planning Toolkit: TODDs (Transfer on Death Deed) скачать в хорошем качестве

Estate Planning Toolkit: TODDs (Transfer on Death Deed)

How does a TODD (transfer on death deed) work? A TODD (transfer on death deed) is one tool in an estate planning toolkit. When properly executed and recorded, a TODD allows you to transfer your real estate at your death automatically and by operation of law. This means that your real estate, whether your home, cabin, rental property, or other, does not have to go through the probate process before going to your designated beneficiary. A TODD is flexible during your life and can be changed or removed at any time. You can sell property even if it has a TODD recorded on it. It not only avoids the probate process, but it also avoids some creditors whose only recourse is in the assets of the estate. However, there are 4 cautions to consider when using a TODD: 1. How many beneficiaries are you planning on leaving the house to? (2:16) If there are multiple beneficiaries, it can be difficult for them to come to agreement about whether to sell the house, have someone move in, or keep the house and have it generate rental income. Not only does each beneficiary have a say, but the spouses of each beneficiary also enter the conversation. Having a deadlock between the interested parties can lead to inaction. Prolonged vacancy can cause the house to lose value and fall into ruin. 2. Will your beneficiary be able to maintain the house until it is sold or rented? (4:40) The beneficiary take title to real estate as it is at your death. This means that utilities, taxes, insurance, and any mortgage on the property need to be paid until your beneficiaries decide what to do with the house and carry out that decision. Make sure that your beneficiary will be in a position financially, physically, and emotionally to maintain the house after you are gone or the house could become a liability instead of an asset. 3. Make sure to execute the TODD correctly. (5:38) This includes (a) getting the names of the grantors correct or the county may reject the deed, (b) having the correct legal description of the property (note: this is not the same as the address, parcel ID, or information on your tax statement), (c) getting the grantees' names correct so that they can receive the property with ease after you are gone, and (d) having signatures that are notarized from all of the grantors and their spouses who are planning to execute the TODD. It is easy to make mistakes in executing a TODD and those mistakes are almost always only discovered after you are gone and can no longer correct them. Correcting the mistakes after you are gone is costly and time consuming. 4. Make sure to record the TODD correctly. (8:05) TODDs must at lease be submitted to the county for recording before the grantor dies to be effective and it is best to have the TODD already recorded before the grantor's death. Having a validly executed but unrecorded TODD will not transfer the property when the grantor dies. Additionally, here in Minnesota, there are two ways title to the property may be recorded: Abstract and Torrens. The way that the property is titled determines where the deed needs to be submitted for it to be correctly recorded. A TODD is a fantastic estate planing tool when used in the right way. It is best to seek legal guidance from an estate planning attorney or real estate attorney when planning to use a TODD to transfer your real estate at death. TJ Scott is an estate planning attorney practicing with the Law Office of Timothy J. Scott, P.A. in Bloomington, Minnesota. TJ can be found online at tjslawoffice.com. The information provided is not legal advice and viewing this information does not create an attorney-client relationship. Further, the information in this video is limited to the state of Minnesota. More information about estate planning, trusts, wills, guardianship, probate, and more can be found online at www.tjslawoffice.com.