Post by Stephanie Carter, Attorney at Law, with Draneas & Huglin, P.C.
Member, Senior Resource Alliance Northwest
On January 1, 2012, a new estate planning tool became available to Oregonians–the Transfer-on-Death Deed (TODD). The new law allows property owners to transfer real property (i.e., real estate) to one or more beneficiaries using a TODD. The Deed must be recorded while the transferor is still living, but is revocable and does not take effect until the transferor’s death. This means that the property owner can sell the property at any time during his or her lifetime, automatically revoking the TODD.
Bank accounts, certificates of deposit, investment accounts, life insurance and almost all other assets have long allowed the owner to designate a beneficiary and, thus, avoid probate. Real property, often the largest asset a person owns, did not allow such a designation. The new TODD is intended to allow for real property to pass after death without probate.
When used in the right circumstances, a TODD could save the estate money.
As an estate planner, I have several concerns about the use of TODDs without first obtaining competent legal advice. Some of these are:
1. Potential for fraud and elder abuse. An untrustworthy individual could influence an elderly property owner to sign a TODD in his or her favor. Such a transfer may defeat the transferor’s estate planning objectives. The persons who would otherwise have inherited the property would have to bring a court action to defeat the TODD.
2. 18-month Cloud on Title. When an estate is probated, there is a four-month creditor claim period, and the State of Oregon must be informed of the probate proceeding. At the end of the claim period, clear title to the property may be transferred. If a TODD is used, the property may not be transferred for 18 months. One of the reasons for this longer period is to allow the state of Oregon to learn of the property owner’s death and assert a claim against the property for monies the State paid out for Medicaid care.
3. Multiple grantors may lead to inconsistent results. If there are joint grantors, a surviving grantor may revoke the deed after the other grantor’s death. The revocation may be inconsistent with the deceased grantor’s wishes.
A TODD may or may not be the best tool for you to use to transfer real property at your death. Consult an estate planning attorney to learn if this option is right for you.
Stephanie Carter, Attorney at Law, Draneas & Huglin, P.C., 4004 Kruse Way Place, Suite 200,
Lake Oswego, OR, (503) 496-5509, stephanie@draneaslaw.com
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When her grandmother could no longer manage by herself, former marketing executive Denise Thomas found her passion: helping the elderly live at home for as long as possible.
In September 1996 my husband was informed on a Monday that his last day of work would be Friday because he would begin kidney dialysis. So, for the next 7 years, I was his caregiver and took care of everything. I had a full time job with a lot of pressure and responsibility. I had to continue my job so we could have health insurance. Just the medical bills for my husband were over ten thousand dollars a month.












