What is the Real Property Transfer on Death Instrument Act?

Part of the estate planning process for many people involves thinking about how to avoid the probate process, as well as thinking about how to transfer real property to loved ones. For most Illinois residents, making a will is an essential part of the estate planning process, but there are many other considerations, as well, such as the creation of certain trusts and, for some, the benefits of the Real Property Transfer on Death Instrument Act. If you have never done any estate planning before, you may not have heard of this law or even realized that such a law exists. In short, it is a law that allows real property owners to designate a beneficiary to receive their real property upon death without going through probate.

Our Oak Park estate planning attorneys can tell you more about this law and how it might be relevant to your estate planning process.

Learning More About the Real Property Transfer on Death Instrument Act

When you are considering working with an estate planning lawyer, the primary reason you would want to learn more about the Real Property Transfer on Death Instrument Act is if you own real property that you want to pass onto another person upon your death. What this law does is that it allows you to create a transfer on death instrument (or a TODI) through which you can designate a beneficiary. When you designate a beneficiary in a TODI, that beneficiary can receive the real property upon your death. The real property can be commercial or residential property — the law applies to both. The TODI is also revocable, which means if you create one, you can revoke it at any time.

The statute specifically says: “An owner may transfer real property by a transfer on death instrument to one or more beneficiaries in any form of ownership valid under State law, concurrent or successive, absolute or condition, contingent or vested, effective at the owner’s death.”

How to Create a TODI

If you want to create a TODI, what will you need to do? You should incorporate this process with the rest of your estate planning, with assistance from an estate planning lawyer in Oak Park, to ensure that all requirements are met. In the meantime, however, we can tell you more about the process for creating a TODI, which is generally as follows:
  • Draft a TODI form;
  • Sign it in front of witnesses and a notary (the witnesses cannot be beneficiaries), and have it notarized; and
  • Take the TODI to the recorder of deeds office in the county where the real estate is located, and file the TODI.
This process must be completed by the person who owns the real property. A TODI cannot be filed after the real property owner’s death — at the point of the property owner’s death, the TODI must have already been properly filed.

Contact an Oak Park Estate Planning Lawyer Today

Whether you have questions about creating a TODI to transfer real property or you need assistance with additional aspects of estate planning, an experienced Oak Park estate planning attorney at our firm can help you. Contact the Emerson Law Firm today for more information.



See Related Blog Posts:

Estate Planning: What Documents Should I Consider?

What is Intestate Succession in Illinois?




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