What Are the Benefits of Using a Transfer on Death Deed? 

 Posted on November 17, 2022 in Estate Planning

If you are like most people, decisions regarding end-of-life decisions and estate planning are not something you want to think about. However, making these decisions now can save your loved stress and expense in the future. Estate planning also provides something no amount of money can provide: peace of mind knowing your final wishes will be carried out according to your specifications.

Strategic estate planning can also reduce the legal complications associated with your passing. One way to simplify the estate planning process is to use a transfer on death (TOD) instrument.

Advantages of Using an Illinois Transfer on Death Deed for Property

A TOD deed or beneficiary deed is a legal document that allows you to transfer ownership of your property to another person upon your death. The process is similar to naming a beneficiary on a life insurance policy. TOD deeds are revocable. You can name one or more beneficiaries, and you can change the beneficiary at any time before your death.

One of the biggest advantages of using a TOD deed is that it allows you to avoid probate. Probate is the legal process of validating a person's will and distributing their assets according to the terms of the will. Probate can be a long and expensive process, so avoiding it is a major benefit.

A TOD deed also allows you to keep your financial information private. Probate is a public process, so the information in your will becomes public record during probate. If you use a TOD deed, your property can be transferred without going through probate, so it will remain confidential.

Through a TOD, you can leave your home or other real estate property to one or more individuals, or you can use this instrument to leave real estate to a legal entity such as a trust. If you have children, grandchildren, or other loved ones you would like to provide for, a TOD can be an efficient and cost-effective way to do so.

If you are considering using a TOD deed in your estate plan, it is important to consult with an experienced estate planning attorney. TOD deeds must meet certain requirements in order for them to be valid. An experienced attorney can help you determine if a TOD deed is right for you and can ensure that your deed meets all legal requirements.

Contact our Hyde Park Estate Planning Lawyer for Help

Chatham estate planning attorney Constance Sherrod can help you navigate the complicated world of estate planning and implement solutions that meet your family's unique needs and financial circumstances. Call The Sherrod Law Firm, Ltd. today at 312-321-6910 to set up a free consultation.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2104&ChapterID=60