Estate planning involves a variety of tools to ensure that your assets are distributed according to your wishes after you pass away. One such tool available in many states is the Transfer on Death (TOD) deed, which offers a streamlined way to transfer real estate directly to a beneficiary without going through probate. This tool has become popular in many states, providing an efficient means of passing on property. However, the status and availability of TOD deeds in Georgia have been a topic of interest and confusion.
Transfer on Death Deed: An Overview
A Transfer on Death deed allows property owners to name a beneficiary who will automatically inherit the property upon the record owner’s death, bypassing the probate process. This type of deed is beneficial because it simplifies the transfer of property, avoids probate costs, and provides a clear succession plan.
TOD Deeds in Georgia
As of July 1, 2024, Georgia does recognize Transfer on Death deeds for real estate. Under the new statute, an interest in real estate may be transferred on death by recording a transfer-on-death deed that is signed by the record owner. Upon death of the record owner, the beneficiary must execute and record an affidavit affirming and accepting the real estate interest that includes verification of the owner’s death, information regarding the owner’s marital status at the time of death, and a legal description of the real estate. The affidavit also must be recorded with the Clerk of the Superior Court in the county in which the real estate is located within nine months of the owner’s death or the interest reverts back to the record owner’s estate.
Alternative Estate Planning Tools in Georgia
Although Georgia does offer TOD deeds, there are other effective estate planning tools available that should also be considered to ensure your real estate is transferred according to your wishes:
- Wills: The most common method for transferring property after death is through a will. By specifying your wishes in a will, you can designate beneficiaries for your real estate and other assets. However, a will must go through probate.
- Living Trusts: Creating a revocable living trust allows you to transfer property to a trust during your lifetime. You can manage the trust as the trustee, and upon your death, the property is distributed to your beneficiaries without going through probate. This option also allows for control of the real property during your lifetime if you become incapacitated without the need to have a conservatorship established.
- Joint Ownership: Holding property in joint tenancy with right of survivorship or as tenants by the entirety (for married couples) allows the property to pass directly to the surviving owner without probate.
- Life Estate Deeds: This type of deed allows you to retain a life interest in the property while designating a remainder beneficiary who will automatically receive the property upon your death. This bypasses probate but comes with limitations and considerations that need to be carefully evaluated.
Estate planning can be complex, and it’s important to explore all available options to determine the best approach for your specific situation. Now that TOD deeds are an option in Georgia, they should be considered as well as the other options that can effectively achieve your goals. Consulting with our experienced estate planning attorneys at Grissom Law Firm, LLC can help you learn more about your choices and create a comprehensive plan that meets your needs.
At Grissom Law, LLC, we specialize in helping clients develop customized estate plans that protect their assets and ensure their wishes are honored. Contact us today to discuss your estate planning needs and explore the best solutions for your circumstances.
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