Virginia Transfer on Death Deed
If you are a resident of Virginia and you own real estate then you have available to you a unique tool to avoid including your real property in probate. A transfer on death deed is a type of deed that identifies one or more beneficiaries who should inherit real estate at the owner’s death. For many homeowners, this can be an inexpensive estate planning tool.
A TODD functions like a beneficiary designation for real estate, just life the beneficiary you designate for a life insurance policy. And like beneficiary designations for other types of assets, a TODD avoids probate by automatically establishing who should inherit the property when the current owner dies whether you have a will or not.
Probate Avoidance
In Virginia, a TODD allows ownership of your real estate to be transferred to a named beneficiary upon your death, while avoiding probate. Probate can significantly delay the transfer of your property to your loved ones after your death and can be very expensive for your estate.
Revocability
Like other types of beneficiary designations, a TODD is fully revocable. So, if you use a TODD, then later decide to do something different, you can change it by filing a new TODD, or by revoking the TODD you filed and recording a different deed later to take effect.
Control
A TODD does not take effect until you die. So, if you create a TODD today, you retain total control over your property while you are alive. For example, you can still sell your house or get a loan with your house as collateral. Furthermore, you can still use a TODD if you have a mortgage or lien on the property, but your beneficiary will be given the property along with those debts when you die.
Multiple Beneficiaries
Passing ownership of your real estate to multiple beneficiaries after you die may be better served by using a trust to convey your property. But, a transfer on death deed can name multiple beneficiaries as well, and is a lot less complicated and expensive to set up than a trust.
Creating a Transfer on Death Deed
To be valid, a transfer on death deed must follow the form prescribed by Virginia law. This means, among other things, that it must be dated, signed by the property owner, and notarized.
In addition, a TODD must be recorded in the land records of the clerk’s office of the circuit court where the real estate is located. A transfer on death deed can only be filed before your death, and it only becomes effective after it is recorded with the county clerk’s office where the property is located.
Transfer on Death Deed FAQs
Can I still use a TODD if I have a Will?
Yes. But, if you also have a Will, a TODD will take precedence provision of your Will. That means that whoever you name in the TODD will receive your property after you die, despite what is in your Will.
Who can I name as a beneficiary on my Virginia transfer on death deed?
You can name whoever you want as a beneficiary. You can also name multiple people to be beneficiaries and also have alternates. The beneficiary does not have to sign the deed, nor does he or she even have to be notified.
Can I revoke or cancel my Virginia transfer on death deed?
Yes. To cancel a Virginia transfer on death deed, a revocation of transfer on death deed needs to be filed prior to your death. Cancellation will only affect your share of the property if there are other owners.
For more information:
To find out if a Virginia transfer on death deed is right for you, call Ferris Law at (804) 767-1800.