Have You Heard Of The Tod Deed?

22. March 2008 by Ana Connell.

In California, there is a proposal on the books, called the revocable transfer on death deed, or Tod Deed, that would give homeowners a simple, one page method to hand down property. This bill was introduced by Assemblyman Chuck Devore (R-Irvine) back in 2004! It was quickly downgraded to a study bill by the Assembly Judicial Committee as the California Bar’s Trusts and Estates Section battled it tooth and nail.

Despite the lobbying effort against the bill, the State Assembly approved AB250 last June. It’s due to hit the Senate Judiciary Committee in 2008.

While this one size fits all form may not be the solution for everyone, it seems beneficial for many looking to avoid probate and who don’t have the money to hire an attorney or have other assets. One of the main benefits of utilizing this method of transfer is that nothing happens until the death of the homeowner, so the chances of someone not exercising their intent are minimized. There are many pros and cons to this method, but other states that have this transfer vehicle report that it has worked well.

There is a study by the California Law Commission that concluded that Tod Deeds would be beneficial in California.

As with anything involving your assets and home, you should do extensive reading and ask questions before deciding on which route to pursue.

If you would like more information on this topic here are some resources you can view:

Assembly Bill Analysis

Lady Bird Deeds…

Wills, Trusts and Estates Blog

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