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           A Transfer-on-Death (TOD) deed is a relatively new estate planning tool now available in Wisconsin. This is a legal document that transfers real property (a home or a parcel of real estate) to a designated beneficiary without having to go through the Probate process. (Find out more about Probate here.) The idea is based on the Pay-on-Death (POD) designations used for bank accounts.

            It’s important to note that a TOD deed is more of a beneficiary designation and only becomes a transfer of ownership when the original owner(s) pass away. Here’s how they work: Mom and Dad own their home and they have one child, Jane. Mom and Dad are getting older and want to be sure that Jane will receive their home when they pass away. Mom and Dad want to make transferring the home as easy as possible.

           The home is titled as owned by “Mom and Dad, as survivorship marital property.” They have a Transfer on Death deed drafted by their attorney and record it in the local Register of Deeds office. If Dad passes away first, what happens? Mom receives full title to the home because the original deed is titled as “survivorship marital property.” When Mom eventually passes away, Jane simply takes both Mom and Dad's death certificates into the Register of Deeds office where the TOD deed is sitting in the chain of title, ready to be used. The title transfers automatically into Jane’s name.

            Whether or not a TOD deed is a good idea for your situation is a question that requires specific facts about your estate planning goals. A TOD deed may be very helpful if you want to avoid probate or if you are concerned about giving your home to an adult child while you are still living in it. A TOD deed may not be the best fit if you are worried about receiving assistance to pay for nursing home care. The best advice is to talk to an Estate Planning Attorney about your specific situation.

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This post was drafted by Attorney Laura L. Colt. Please feel free to contact our Reedsburg Office at (608) 524-8231 to schedule a consultation with Attorney Colt to discuss TOD deeds.

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