A transfer-on-death designation affidavit is a legal document that allows you to name a beneficiary for specific assets. As its name suggests, it takes effect upon your death, transferring ownership directly to the named beneficiary. This process bypasses probate, potentially saving time and money for your heirs.
Which assets can you transfer with a TOD?
In Ohio, real estate is one of the primary assets that you can transfer with a TOD. This includes residential homes, vacant land and commercial properties. To create a TOD designation for real estate, you will need to file a TOD affidavit with your county recorder’s office.
Besides real estate, you can also file a TOD designation for vehicles, stocks and bonds. However, the process will be different. For vehicles, you may need to go through the filing process at the Ohio Bureau of Motor Vehicles (BMV). For securities like stocks and bonds, you will need to work with the company or broker holding your investments. Make sure to consult with an attorney to ensure you’re following the correct procedures for each type of asset.
It’s important to note that you retain full control of the property during your lifetime – you can sell it, refinance it or even revoke the TOD designation if you change your mind. This makes it a flexible option for estate planning that doesn’t limit your control over your assets while you’re alive.
What’s off the table?
Not everything can qualify for a TOD designation. This includes:
- Jointly owned property: If you own property jointly with rights of survivorship, it automatically passes to the surviving owner(s) upon your death, making a TOD unnecessary.
- Property in trusts: Assets already in a trust have their own method of transfer and cannot have a TOD designation.
- Business interests: These often require more complex transfer methods, such as buy-sell agreements or specific provisions in your operating agreement or bylaws.
It’s also worth noting that while bank accounts cannot have a TOD designation, they can have something similar: a “Payable-on-Death” (POD) designation, which allows you to name a beneficiary who will receive the funds in the account upon your death.
Make informed decisions
TOD designations can streamline asset transfers and potentially save your heirs time and money. However, proper execution is crucial. It’s wise to work with an attorney who can ensure they’re set up correctly.
