Transfer on Death Instruments
Transfer on Death Instruments
Illinois has a new law permitting a deed to transfer residential property upon death, but is this deed always best for your situation? Will a land trust provide more benefits? Ask your attorney. Recently, many people have come to us because their parents or spouses died without preparing for the transfer of the title of their residences. Now the children are stuck in costly proceedings to clear the title to prevent foreclosure, to deal with a bank, to refinance the mortgage, to deal with freeloading siblings, to find distant relatives who may get a share of the house, or even just to repair the house.
If you own a home, putting your home in joint tenancy, a land trust, or a TODI can save your loved ones from worry, drawn-out proceedings, and expenses. Properly prepared, you can get the title deed in their names without giving up your control of the property. Preparing the title is relatively inexpensive and often more important than a signing a Last Will and Testament.
The article about Prince above notes several estate planning failures:
The article about Prince above notes several estate planning failures:
- Consider a father with grown children who have sweet memories of the home where they were raised. With no will, a second wife could inherit the house and give it to her own children from her previous marriage, leaving out the children who were raised in that house.
- On the other hand, second wives have been left homeless because a husband died without updating an old will to incorporate a second wife. In an old will, he leaves his home and everything else to his children.
- Many people don't write wills because they assume they are young and have plenty of time. Yet Prince was only 57 years old.
- Families should revisit the will every few years because, as time passes, one asset can gain value a lot while another loses.
