A transfer-on-death (TOD) deed, or beneficiary deed, allows an owner of real property to execute a deed that names a beneficiary who will obtain title to the property at the owner’s death without going through probate. The TOD is used as a substitute for a living will or even a designation under a will. The TOD was recently codified into the Virginia Code Section due to the increasing demand of a easier, cost-effective way to facilitate a transfer of property of a loved one who is likely to pass away.
The benefit of a TOD is that the transfer is non-taxable and is not subject to probate. Having probated estates in the past, this is a significant advantage, as it allows for a clean transfer from one individual to another. The TOD does not take affect until death, and may at any time be revoked.
In order to effectively record a TOD, the structure and language must be done accurately and correctly, and must be filed correctly with the Land Records Department of the County in which the property is located.
If you need assistance with a TOD, feel free to contact the firm as needed.