Attorney Thomas B. Burton discusses some of the pros and cons of using a Transfer on Death ("TOD") Deed as part of your estate plan.
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Transcript of Video: Pros and Cons of Using a Transfer on Death (TOD) Deed in Wisconsin:
What are some of the pros and cons of a
Transfer on Death Deed? The pro is that a
Transfer on Death Deed is relatively
easy to execute and can be done quickly
it can transfer a piece of real estate
upon your death to your intended heirs
or beneficiaries however some of the cons
of a Transfer on Death Deed is it does
not provide you with other protections
during life like a revocable living
trust and a durable power of attorney
would do for instance a Transfer on
Death Deed will not help you in terms of
avoiding a guardianship it only becomes
effective upon your death therefore if
you're alive but incapacitated the
people named on the deed have no
authority to manage or transfer the
property during your life second a
Transfer on Death Deed can lead to
problems if you leave the real estate
to multiple beneficiaries upon your
death they just become co-owners of
the property so if you have five
children and you leave it to them
there's five children suddenly own a
one-fifth interest in that house or real
estate within a Will you can name a
personal representative who's in charge
of selling the house and wrapping up the
estate or in your trust you can name the
trustee to manage it but a Transfer
on Death Deed doesn't name any one of
those five children as in charge this
can lead to strife and sometimes fights
over what to do with the property in the
worst case it could lead to a partition
sale or a court fight so think carefully
about the situations where you use a
transfer on death deed they can be a
very effective tool as part of a
comprehensive estate plan talk with your
attorney about whether it makes sense
for you.
© 2018 Law Office of Thomas B. Burton. All Rights Reserved.
Transcript and captions provided for ease of access for the hearing impaired.
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