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This web site has been created to explain the Revocable
Transfer-on-Death Deed, sometimes called the Revocable Beneficiary
Deed.
Since 1989, nine states have passed new laws
which allow the homeowner to avoid Probate, and avoid the expenses of a
Trust, providing the
homeowners with a method of leaving real estate to their heirs by use of
an inexpensive Revocable Transfer-on-Death Beneficiary Deed.
The nine states are: Arizona, Colorado, Kansas,
Missouri, Nevada, New Mexico,
Ohio,
Arkansas, and Wisconsin. More states will pass
such laws in 2007 and beyond.
When the homeowner dies, title to the real estate passes to the
beneficiary or beneficiaries, named in the Transfer-on-Death Deed, similar
to how title passes in a Joint Tenancy Deed. No Probate is needed. This
Deed avoids Capital Gains Taxes to be paid by the Beneficiaries at time of
sale.
This Revocable Transfer-on-Death Beneficiary Deed, can be
revoked. This avoids the
problems that exist when the homeowner now adds her son, her grandson, or
her daughter to her deed. The home ends up in her son’s divorce, her
grandson’s bankruptcy, with liens from her daughter’s creditors. When she asks them to give her
home back to her, they frequently refuse. At her death, unnecessary Capital
Gains Taxes are paid upon the sale of the home. Although the Beneficiaries are
named in a Revocable Transfer-on-Death Beneficiary Deed, they have no
ownership rights to the home until after the death of the homeowner.
The real estate can be refused by the Beneficiary through a
Disclaimer of Interest form.
The rights of creditors, as well as the debtors, are protected by
this Deed.
This transfer of real estate is similar to Transfer-on-Death (TOD)
statutes previously enacted by state legislatures relating to other types
of assets (i.e. Security Accounts, Bank Accounts, Cars, Boats, Mobile
Homes, Retirement Accounts).
Real Estate is the only major asset that cannot be transferred
through a Transfer-on-Death title.
Californians need a Revocable Transfer-on-Death Beneficiary Deed.
Take a look at www.nonprobate.com
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