When people draft a will or last testament, they can define particular assets or several portions of the estate. They must also ensure that these go through transfer on death deed (TOD). For individuals who own an estate that has many heirs, it is important to develop an estate plan way before they die.
Nevertheless, it is also essential that they know the advantages and disadvantages of these TOD deeds. This requires conducting research and getting the service of a Denver real estate attorney. Miller & Steiert, P.C. shares more information about this matter.
Advantages of TOD Deeds
Most estate owners arrange what will happen to their property, monetary assets, real estate and other holdings. When confirmation may be a problem with their dependents, they can transfer some items using a TOD deed. This way, the estate owner would be able to avoid probate, the courts, and the extended procedure that their dependents may go through if they die.
If an heir does not have another home or is facing eviction, then a TOD deed will be ideal for this particular dependent. The owner generally considers this, which is why they will most likely require a TOD deed for their primary residence. Moreover, the lack of tax is a great benefit for both parties.
Nevertheless, this move can be the reason a TOD deed will flop when a will would actually work. Errors frequently happen in different forms and need assessment before they can be forwarded to the proper officials. If not handled correctly these could lead to joint tenancy instead of passing the estate to the heir.
To avoid the probate process, the property owner can appoint a beneficiary via a transfer on death deed. Now that you are aware of the advantages and disadvantages, you will be able to plan effectively with the help of your estate attorney.