What Is A Simple Revocable Transfer On Death Deed?

A transfer on death deed, also known as a beneficiary deed, is a specialized type of deed which can be used to transfer the ownership of a real property outside of probate. If you own a piece of real estate that is in your sole name without any type of co-owner, you have very few options, if you want to be able to pass the property to a beneficiary of your choice upon your death without the necessity of a probate. Assets that are placed in a living trust will generally avoid probate, but it is much easier and less costly to just transfer the property using a transfer-on-death deed, which is also sometimes called a beneficiary deed. It is important to be aware of the fact, however, that not every state recognizes this option.

A transfer-on-death deed can be created and signed before your death to move your property out of your name and into the name of your beneficiary. However, the deed does not actually take effect until you have died. You will continue to own the property in question throughout the rest of your lifetime. You will retain the right to sell it. Your beneficiary has no legal right to the property whatsoever until your death. The deed does have to be recorded with the county records office in the county where the property is located. If you change your mind at any point, you can simply revoke the current deed or you may create and record a new deed, which will supersede the old deed and transfer the property to the new beneficiary. Since you are not actually giving the property away during your lifetime, this type of deed will not incur a gift tax.