What You Need to Know About Transfer on Death Deeds in Washington
Transferring property without the presence of one of the parties is a convoluted process. Here’s everything you need to know about transfer on death deeds in Washington.
Washington’s transfer on death deed form permits an automatic property transfer once the present owner dies. Transfer on death deeds does not need to go through probate court and other benefits. Transfer on death deeds still grants the current owner control over the property while still alive.
What is Transfer on Death Deed Form?
A Washington transfer on death (TOD) deed form is a unique deed form where the owner (grantor) of a Washington property creates a transfer of property once the current owner dies. Before death, the grantor names one or several beneficiaries to the real estate on a TOD deed form, which transfers until after the grantor’s death.
The two goals of a TOD deed form are:
- To avoid probate court,
- To allow the current owner to retain control over the property during their life.
Without involving the beneficiary in any property decision, the parties involved are able to avoid probate court. Control over the property includes but is not limited to selling, mortgaging, or leasing the property without the beneficiaries’ consent. Moreover, the grantor may change or revoke the beneficiary while they still live. Any mortgages or other liens against the property remain on the property, not affecting creditors’ rights.
Related: Dividing Property in a Washington Divorce
Benefits of TOD Deeds
In Washington, a TOD form has several benefits:
1. Avoids probate court
Probate is a court-supervised procedure to prove a will in a court of law before transferring a deceased person’s real estate. With a TOD deed form, beneficiaries and other parties involved can avoid the strenuous process and grant the property to the new designated owners.
2. Grantor maintains control and flexibility,
Several deed forms addressing life estates and joint tenants require the current owner to relinquish all control over the property. Washington TOD deeds, however, allow the owner to maintain control over the property without addressing the beneficiaries.
3. Continuity of ownership,
During the owner’s life, the property ownership title is not affected; this also includes any state-level tax exemption qualification, like a homestead exemption. If the property qualifies for the exemption during the grantor’s life, it will continue to qualify after they die. The property also remains eligible for federal tax benefits.
4. Easier to manage with less expense.
Although several benefits of a TOD can be found in a living trust, establishing a living trust is much more complicated for all the parties involved. Also, a living trust is more expensive than a TOD deed form. Hence, a TOD is a much easier and less costly route.
Related: How to Divide Property in a California Divorce
Beneficiary Deeds in Washington
If a TOD Deed form does not seem like the best fit for current real estate needs, there are other deed forms applicable in Washington:
- Quit Claim Deed Form (click here for more information) – provides the owner with no warranty of title, and the beneficiary assumes the risk of any problems with the property title.
- Bargain and Sale Deed Form (click here for more information) – provides a limited warranty of title during the grantor’s ownership of property and the implied warranties of title.
- Special Warranty Deed Form – provides a limited warranty of title, but with no implied warranties of title, like a Bargain and Sale Deed.
- Statutory Warranty Deed Form (click here for more information) – provides a full warranty of title for the duration of all past owners along with implied warranties of title.
- Life Estate Deed Form (click here for more information) – transfers property to a new owner after the death of the grantor, but the new owner cannot mortgage, sell, or deal with the property without the consent of the remainder beneficiary.
Contact Us
If you or a loved one would like to learn more about Transfer on Death Deeds Washington, get your free consultation with one of our Property Division Attorneys in Washington today!