Transfer on death deed lawyer Milwaukee
What is a Transfer on Death Deed?
A Transfer on Death Deed (TOD) is a legal document that allows property owners to name a beneficiary to receive real estate upon the death of the property owner. As stated by Wisconsin State Statute 7015.15, a TOD Deed allows you to name a transfer-on-death beneficiary for your home and transfer your real estate to a loved one without a court procedure and may offer tax benefits.
Breaking down what a Transfer on Death Deed Does
Imagine you own a house, and you want to make sure your best friend gets the house when you pass away. Instead of leaving it to her in your will, you can use something called a Transfer on Death Deed (TOD Deed).
This deed allows you to write down that when you die, your friend will automatically get the house, no questions asked. It’s like putting a note on the house that says, “When I die, this house belongs to my best friend.”
The best part? Your friend doesn’t have to go to court or deal with a long process to get the house. It just happens automatically after your death. Also, this can save money on taxes in some cases.
So, you fill out a TOD Deed, sign it, and have it recorded at the county Register of Deeds. Now, when you pass away, the house goes directly to your friend without any hassle.
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Why is a Transfer on Death Deed Important for my Estate?
Avoids probate:
A TOD Deed also bypasses probate, which is a complex, lengthy court process that takes place after your death to determine what should happen to your assets. In Milwaukee, probate can take 12 to 18 months, or even longer, to complete, includes fees, and is public information. The TOD Deed goes into effect immediately after the death of the property owner, thus streamlining the process and distributing the property to beneficiaries without delay.
Tax Benefits:
Tax benefits of the TOD Deed process include avoiding gift tax and beneficiaries receiving a step-up in basis of the property. The TOD deed does not trigger a gift tax because the real estate does not pass to the beneficiary until the property owner has passed away. In terms of the step-up in basis, this valuable tax tool reduces capital gains tax if the property is later sold by the beneficiaries.
Who is a good fit for a Transfer on Death Deed in Milwaukee?
A TOD Deed is ideal for individuals whose only significant asset is their owned property. TOD deeds are only applicable to real estate, such as land and buildings and any personal property or financial assets cannot be included in a TOD Deed. Single property owners, or people who own property solely in their name and wish to pass it on, are the easiest scenario for a TOD deed, as it requires only the sole property owner’s consent. Additionally, given the quick process of the TOD deed, it is good for a quick fix in the event of terminal illness, the elderly, or someone may want to skip the probate process and ensure their beneficiaries receive the property without delay.
A TOD Deed is not a good fit for those with complex estates, insolvency risks, or changing beneficiary scenarios. Instead, individuals with more complex estates may require more comprehensive estate planning tools to cater to your specific needs, like a trust. Additionally, other protective measures may be necessary because a TOD Deed does not protect property owners from insolvency or significant creditor claims. The constant updating of the TOD deeds to frequently change beneficiaries can be expensive and inconvenient.
3 Step process for success by hiring a Milwaukee Transfer on Death Deed Lawyer
Step 1: Talk to an Attorney
An experienced Milwaukee Transfer on Death Deed attorney can help determine if the TOD deed is the right fit for your specific circumstances.