Revocable Transfer on Death Deed
Effective January 1, 2016, residents of California can use a new deed to transfer certain pieces of real property upon their death. The revocable Transfer on Death deed ("TOD") allows individuals to transfer the following types of real property:
- property that contains one to four residential units
- a condominium unit, or
- a parcel of agricultural land of 40 or fewer acres that includes a single-family residence.
One benefit of the TOD is it is fully revocable during the transferor's lifetime. A person making use of this deed, therefore, is free to make changes after its execution.
The largest benefit, however, is probate proceedings are not applicable to property transferred via a TOD. Prior to 2016, real property that was not distributed via a trust or will was subject to the probate process -- which can be long and cumbersome. As a result, a TOD is a highly effective way to make a testamentary disposition of a specific piece of real property.
In the event you have one of the aforementioned pieces of real property and do not have an estate plan in place, a TOD is an effective alternative.
If you have any questions, please do not hesitate to contact our office.
The Benefits of Setting Up An Estate Plan
One of the most important, but often overlooked, decisions every individual should make is ensuring the orderly disposition of their assets upon their death. Having a well thought out estate plan carries with it numerous benefits. Some of which are:
- Preserving your wealth
- Protection of assets (homes, businesses, real property, securities, etc.,)
- Ensuring any businesses you own continue to operate as normal
- Avoiding the costs and stresses of the probate process
- Preventing fighting within the family
- Ensuring the financial well-being of children
- Having the power to distribute your property the way you would like and how you would like
- Ensuring children with special needs can continue to receive government assistance and benefits
- Ensuring healthcare decisions pertaining to you are made by ones you trust and value the most
- In the case of incapacity, ensuring financial decisions are made by those who you value most
- In the case of individuals with children from prior marriages, ensuring the distribution of your estate does not exclude those children from prior marriages
Another important consideration for individuals with larger estates is whether the federal estate and gift tax will be implicated in the administration of their estate. In such cases, it is imperative to implement an estate plan that can minimize tax consequences during administration. There are a variety of strategies that can be used in order to mitigate tax implications. In summary, having a well thought out estate plan provides your family with peace of mind at a time that is most trying in addition to maximizing the overall value of your estate.
Randhawa Hundal LLP Roseville Estate Planning Services:
While we will also assist you in drafting your estate planning documents and portfolio, we will also be with you every step of the way, here to answer any questions you may have.
Our estate planning package includes the following:
- Living Trust (Revocable)
- Advance Health Care Directive
- Durable Power of Attorney
- Pour-Over Will
- HIPAA and CMIA Authorizations