A Transfer on Death Deed is a new method in Washington for leaving your real estate to a beneficiary without going through the probate process. Effective June 12, 2014 The Washington legislature created a new way for people to transfer real property to a designated beneficiary at the time of death.
The owner of real property may record this deed which becomes effective at his/her time of death. When the grantor dies, the Grantee of the deed becomes the legal owner of the property automatically. Below are a few bullet points regarding the Transfer on Death Deed (TODD).
– The Deed can be revoked during your lifetime.
– The Deed will include any taxes, mortgages, or liens already on the property.
– If you own the property jointly, the Transfer on Death Deed will not apply until all the owners have died.
– You can name alternate beneficiaries if the first choice beneficiary you selected refuses the property or does not survive you.
– Prior to the Grantor’s death, the recording of the TODD does not give any rights or interest in the title to the Grantee.
– A judgment, divorce, bankruptcy, or anything else related to the Grantee cannot affect the real property prior to the Grantor’s death.
– The mental capacity of the Grantor has the same requirements as a Will.
The idea of the TODD is to create a simple “non-probate” tool to distribute real property to heirs in lieu of expensive estate planning. This process may avoid “lack of probate” work that can often delay the transfer of real property. The TODD does not come without room for error and possible conflict. For example, other restrictions may be in place regarding the transfer of property as it pertains to how they took title to the property or there may be an inconsistent executed Will in addition to a TODD.