Avoiding Probate, the Revocable Transfer on Death Deed
The primary goal of many clients when creating their estate plan is to avoid probate because it can be time-consuming, costly, and difficult to navigate without the help of an attorney. One way to accomplish that goal is to list beneficiaries on your assets so that they become “transfer on death” or “pay on death” assets. You probably knew that you could list beneficiaries on your retirement accounts, investment accounts, and even checking accounts, but did you know you can also designate beneficiaries for your real estate?
In 2013, Virginia adopted the Uniform Real Property Transfer on Death Act, making it possible to list beneficiaries to inherit your real estate using an instrument called the Revocable Transfer on Death Deed (“Transfer on Death Deed”). When done correctly, a Transfer on Death Deed avoids probate for many people’s largest asset – their homes. To be effective, a Transfer on Death Deed must state that the transfer to one or more beneficiaries will occur at the death of the homeowner(s), be signed by the homeowner(s), and be recorded before the passing of the homeowner in the county where the real estate is located. Once recorded, the Transfer on Death Deed does not transfer ownership until the death of the homeowner(s).
What if you have a mortgage? You can still use a Transfer on Death Deed if you have a mortgage or other lien on your home. Transfer on Death Deeds do not impact the lender’s rights. Instead, your beneficiary simply inherits the property subject to the mortgage or other lien.
What if you want to sell your house after you record a Transfer on Death Deed? A Transfer on Death Deed is revocable and does not impact your right to sell your home. The sale of your home would simply be considered a revocation of the Transfer on Death Deed.
The Transfer on Death Deed is a great tool to avoid probate when used in conjunction with other estate planning instruments such as a Will, Trust, Advance Medical Directive, Power of Attorney, as part of your comprehensive estate plan. If you are interested in learning more about a Transfer on Death Deed, call 703-883-0880 to schedule your free estate planning consultation.
About Us
Briglia Hundley® was founded in 1993 and practices throughout the mid-Atlantic region. Our practice features attorneys listed as “Legal Elite” by Virginia Business magazine, named to Super Lawyers, and listed in Best Lawyers.
We are a forward-thinking law firm that relies upon our experienced and energetic attorneys to meet the legal needs of our clients reliably and responsibly in Virginia, Maryland, and the District of Columbia.
Contact Briglia Hundley®
Tysons Corner Office
1921 Gallows Road, Suite 750
Tysons Corner, Virginia 22182
Telephone: 703.883.0880
Fax: 703.833.0899
