REVOCABLE TRANSFER ON DEATH DEED
As of January 1, 2016 a new type of deed took effect in California, the Revocable Transfer on Death Deed (TOD). This deed can be used to designate a beneficiary who will receive the property when you die without the need for probate. Many people have used joint tenancy as a means for avoiding probate, but this method is best used for a married couple. A joint tenancy deed allows the creditor of the joint tenant to place a lien on property, you would need the joint tenant’s permission to sell or refinance the property, and it can also lead to higher taxes. The TOD is revocable by you as long as you are competent to do so, the heirs do not own any of your property as long as you are alive, and when you die the property will pass as an inheritance, not a gift, so more favorable taxes are applicable. Although the TOD is a good tool for some individuals, it has limitations associated with it. Contact us today to find out if this type of deed is the best tool for you.