Easy Way For Homeowners To Avoid Probate

Q: My wife and I are working on our estate plan. What’s an easy way to avoid probate regarding our properties when we pass? Gary, Arlington, VA

A: A transfer on death (TOD) deed, also known as a beneficiary deed, allows homeowners to avoid the probate process on their home when they die and gives them the ability to maintain control over the property during their lifetime. TOD deeds also allow a property owner to designate a beneficiary to inherit real estate upon their death, thereby bypassing the often lengthy and expensive probate process. With a TOD deed, the owner retains full control of the property, including the ability to sell it until their death. TOD deeds are not available in all 50 states. Thirty-one states and the District of Columbia allow Transfer on Death (TOD) deeds, although the specific rules and requirements can differ from state to state. I see you are writing from Virginia, which does allow TOD property deeds; however, NJ is not currently one of the states that allows TOD deeds.

Thanks for your question, Gary. For more real estate tips and information, visit my blog at geraldlucas.com.