A person who’s creating their estate plan has to determine the best ways they can pass their property down to their beneficiaries. If one of those assets is real property, they may opt to use a transfer on death (TOD) deed.
A TOD deed allows the property owner to name the beneficiary who will receive the real property after the owner passes away. This is a way that the ordinary probate process can be avoided, but it’s one that only applies to deaths that occurred on or after July 1, 2024. Any TOD deeds must meet specific legal requirements, so the beneficiaries should understand those.
What is Georgia’s 9-month rule?
One of the most important things for beneficiaries to remember is that TOD deeds are subject to the 9-month rule. This means that you must file an affidavit with the Superior Court in the country of record within 9 months after the decedent’s death so you can transfer the property into your name. Failing to do this means that the property would become part of the decedent’s estate and trigger the probate process, which would delay you being able to receive the property the decedent intended you to have.
Do TOD deeds erase obligations?
TOD deeds don’t automatically erase obligations that are attached to the property. Creditor claims, tax liens, mortgages, title defects and unpaid assessments are all still valid. Those would still need to be taken care of, even though you receive the property via the TOD deed.
Anyone who inherits a property via a TOD deed should review the documents associated with the property. If more than one person is named on the TOD deed, determining how expenses related to the property will be handled is critical.
A TOD deed is a valuable addition to a comprehensive estate plan, but it’s not the only consideration that you have to handle when you’re handling a loved one’s estate. Working with someone familiar with these matters may be beneficial because some estate plans can be complex to work through during the probate process.