How to Use Transfer on Death Deeds in Missouri Estate Planning

How to Use Transfer on Death Deeds in Missouri Estate Planning

Transfer on Death (TOD) deeds are an effective estate planning tool that allows property owners in Missouri to pass on real estate directly to designated beneficiaries upon their death, bypassing the probate process. Understanding how to utilize TOD deeds correctly can significantly streamline the transfer of property and reduce the burden on loved ones. Here’s a step-by-step guide on how to use Transfer on Death deeds in Missouri estate planning.

What is a Transfer on Death Deed?

A Transfer on Death deed is a legal document that enables an individual to transfer ownership of real estate to a beneficiary upon their death. The deed remains revocable, meaning the property owner can change their mind or revoke the deed at any time while they are alive. This mechanism ensures that the property bypasses probate, allowing for a quicker and more efficient transfer.

Steps to Create a Transfer on Death Deed in Missouri

To effectively set up a TOD deed, follow these steps:

1. Determine Eligibility

In Missouri, any owner of real estate can create a TOD deed. This includes individuals who hold the property solely or jointly. Ensure that you are legally able to transfer the property you wish to include in the deed.

2. Complete the TOD Deed Form

Download a Transfer on Death deed form specific to Missouri. This form must include:

  • The name(s) of the current property owner(s).
  • The legal description of the property.
  • The name(s) of the designated beneficiaries.
  • Signature of the property owner(s) and the date of signing.

3. Notarization

To make the deed valid, it must be notarized. Ensure that you sign the document in the presence of a notary public, who will then validate your signature.

4. Filing the Deed

After notarization, the TOD deed must be filed with the county recorder of deeds in the county where the property is located. There may be a filing fee, so check with your local office for specific requirements and costs.

Important Considerations for TOD Deeds

While Transfer on Death deeds are beneficial, it is essential to consider the following factors:

1. Changes and Revocation

The property owner can revoke or modify the TOD deed at any time, as long as they are alive. To revoke, a new deed stating the revocation must be executed and filed.

2. Beneficiary Status

If a beneficiary predeceases the property owner, their share may go to their heirs unless otherwise specified in the deed. Consider including contingency beneficiaries to avoid complications.

3. Joint Ownership

If the property is jointly owned, know how joint tenancy may impact the transfer. Jointly held property typically passes to the surviving joint tenant, which may influence the intended distribution.

Advantages of Using TOD Deeds

Using a Transfer on Death deed has several advantages:

  • Avoids Probate: Properties transferred via a TOD deed do not go through probate, saving time and money.
  • Simplicity: The process of creating and submitting a TOD deed is straightforward compared to other estate planning methods.
  • Control: Property owners retain full control of their property while alive and can change the deed as their circumstances change.

Conclusion

Implementing Transfer on Death deeds in Missouri estate planning can simplify the property transfer process and provide peace of mind for property owners and their beneficiaries. By understanding the steps and considerations involved, you can effectively manage your estate and ensure that your loved ones receive your property without the complications of probate.