What is a transfer on death deed and how does it work?

A transfer on death (TOD) deed is a legal document that allows property owners in California to transfer their real estate to designated beneficiaries upon their death. The individual transferring the property is known as the “grantor” and the person receiving the property is the “beneficiary.” To create a TOD deed, the grantor must complete and sign a special type of deed and record it with the county recorder’s office. The deed must include the names of the grantor and beneficiary, the address of the property being transferred, and a brief legal description of the property. When the grantor dies, the beneficiary will take ownership of the property free from probate or some other legal procedure. The transfer is made directly, there is no need to go through the court system. However, there are a few limitations to the use of a TOD deed. First, the owner must be an individual, not a business or organization. Second, only real estate can be transferred, not other types of property such as a car, artwork, or jewelry. Finally, the deed does not give a beneficiary any rights over the property until the grantor died, so it cannot be used as a way to avoid creditors. Overall, a TOD deed is a useful tool for estate planning in California. It allows an individual to transfer the ownership of their property to a family member or friend without the need to go through probate or other legal processes.

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