Use Date Deed For Free

A Beneficiary Deed fails to address the possibility of the owner becoming incapacitated. For this reason, the owner should certainly have an up-to-date financial power of attorney, and consider titling the property in a revocable living trust instead. Fails to deal with unusual situations.

In some states, such as California, multiple beneficiaries on TOD deeds can't inherit unequal property shares, and you can't name a backup beneficiary. In addition, your estate plan may be too complex for a TOD deed if you have multiple children to whom you'd like to pass property.

A beneficiary deed is more commonly known as a transfer on death deed. Beneficiary deeds become effective immediately upon the death of the grantor- or, in the case of joint tenancies, the death of the last surviving grantor- and are often used to avoid the time and expense involved in probate.

The deed must be signed by the grantor or grantors if the property is owned by more than one person. The deed must be legally delivered to the grantee or to someone acting on the grantee's behalf. The deed must be accepted by the grantee.

Date of this Deed means the date this deed is signed by all the Parties.

While a beneficiary deed will help your estate to avoid probate, it will not provide any help or protection if you become incapacitated. If you have sole ownership of the property, no one will be able to care for or sell the property for you if you have medical issues.

Estate and Capital Gains Taxes If your heirs sell your home, they could be subject to capital gains taxes regardless of whether they receive the property through a living trust or a TOD deed.

Cons To Using Beneficiary Deed Property transferred may be taxed. No asset protection. The beneficiary receives the property without protection from creditors, divorces, and lawsuits.