Update On The New Transfer on Death Deed in Georgia
Do You Know Much About the Transfer on Death Deed in Georgia?
It’s always good news when an estate planning tool comes on the scene making it easier to avoid probate. The recent passage of new legislation heralds the arrival of the Transfer on Death Deed (TODD) in Georgia as of July 1, 2024.
The Transfer on Death Deed in Geogia can be used to transfer real estate to a beneficiary without going through probate.
The TODD legislation simplifies estate planning for many, offering a more efficient way to transfer real estate to loved ones. The process is simple enough.
TODD Process
The property owner signs a TOD deed first. Then, it is recorded with the superior clerk in the county where the property is located.
After the owner’s death, the beneficiary must record an affidavit within nine months to accept the property. The affidavit must include the following:
- Verification of the owner’s death
- Marital status at the time of death
- A legal description of the property
If the affidavit isn’t recorded within nine months, the property reverts to the owner’s estate.
Transfers via a TODD may pass to the beneficiary even if the estate has creditors.
Without a TODD, creditors may force the sale of a house before it is transferred to the beneficiary. They do this to ensure payment. It’s also important to consider the how a TODD can affect a beneficiary’s eligibility for means-based government programs like Medicaid.
However, the property still passes subject to the mortgage and is not shielded by Medicaid recovery efforts. This means that even if all requirements are met and the property successfully passes outside of probate, it still may not be shielded from all obligations.
While the new TOD Deeds can simplify estate planning and avoid delays and additional costs for heirs, they may not be the best option for everyone. For instance, if you have significant assets and complex family dynamics, there are other estate planning tools that may be more suited to your circumstances. Before setting up a TODD, consult with an established, successful estate planning attorney as the best first step to determine what would be best for your estate. Give my office a call today at (470) 235-7868. We’ll help you determine whether the TODD could be a helpful addition to your estate plan.
Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!
