TOD Deed

[ripper1]

Looks like we are staying put in our home forever. I went online and am in the process of doing a transfer on death deed for our home to our children. It seems pretty straight forward and for a fee of 29 bucks. After I guess the next step is to take it to our county building to the recorder of deeds to make it official. This way my kids can avoid probate. I'm just wondering have others done this and is it maybe a good idea to see a real estate lawyer first?

 

[RunningBum]

I did this last year, with properties in two different counties. Yes, you do need to file the TOD with the county, and keep a copy for yourself so your heirs know it has been filed and the house doesn't have to go through probate.

I talked to my estate attorney before doing it, to make sure it was the right thing. We had been talking about setting up a trust and of course the house would be retitled into the trust if I went that way, but she agreed I was in good shape with my property, Vanguard accounts and CDs set up with TOD and very few assets outside of TODs. She said they could do the filing for something like $100 or $150 if I didn't want to deal with it. I didn't mind. It was straightforward and quick at both places. Just make sure you get the legal description right word for word. I assume you could get the real estate attorney to file it for you for a fee as well if you don't want to.

 

[albundyz]

Glad to see I'm not the only one who did this. In Los Angeles County, it cost about $110 to file it (plus what I paid notary).

I am trying to avoid the cost of a Living Trust if it's not necessary. I only have an IRA (with a designated beneficiary) and my house (the TOD document). All my other assets are under $50,000, so I don't think it will have to go thru probate.

 

[38Chevy454]

DW and I have a trust, so we put our house into the trust. But doing the TOD would seem to accomplish what you are wanting to do.

 

[bw5972]

Looks like we are staying put in our home forever. I went online and am in the process of doing a transfer on death deed for our home to our children. It seems pretty straight forward and for a fee of 29 bucks. After I guess the next step is to take it to our county building to the recorder of deeds to make it official. This way my kids can avoid probate. I'm just wondering have others done this and is it maybe a good idea to see a real estate lawyer first?

Do the children get a stepped up cost basis with a TOD transfer or do they inherit your cost basis? I’d need to know that to go that direction.

 

[gindie]

Do the children get a stepped up cost basis with a TOD transfer or do they inherit your cost basis? I’d need to know that to go that direction.

Stepped-up according to: https://www.nolo.com/legal-encyclopedia/free-books/avoid-probate-book/chapter5-3.html

 

[bw5972]

Stepped-up according to: https://www.nolo.com/legal-encyclopedia/free-books/avoid-probate-book/chapter5-3.html

I didn’t see anything there about cost basis, only about no gift tax. If the children eventually sell, the IRS will get their due.

 

[calmloki]

So how does that work? House is jointly owned by Sam and Ann. A TOD document has been filed.
1. Sam dies, house is automatically in Ann's name alone, right?
2. Sam and Ann die in a lightning strike; TOD doc puts house in their son's name.
3. Sam dies, Ann remarries and wants the house to be shared with her new hubbies kids as well after her death - or go to the Church of Wayward Pets - or transfer to her new husband. Can she do so and cut Sam's son out of the house?

 

[albundyz]

calmloki: I'm no expert, but this is how I understand it. Our house is owned by both me and my wife. TOD documents in California apply to just one owner, not two. To solve that problem, we filed two identical TOD documents, one for me, one for my wife, both designate our sons to acquire our house in the event of our death.

If I die my wife owns the house and my TOD document is invalid. If she dies, I own the house, and her TOD document is invalid. If we both die, our sons get the house because the two TOD documents are identical.