A Simple Estate Plan with the Use of a Transfer on Death Instrument (TODI)

The largest asset that most individuals possess during their life is their residence.  Over the years, your residence may have been where you raised your children, shared family holidays, and spent money improving and repairing. 

When the main asset in your estate is real property, it oftentimes requires a probate estate to be opened in order to transfer the property to heirs or beneficiaries under a Will.  This can be costly and time-consuming for many families.  Thankfully, in Illinois, we have the option to create a Transfer-on-Death Instrument ("TODI") for real property that easily conveys ownership of the property on the owner's death to named beneficiaries. 

The TODI can be an effective substitute for a will or trust if a residence will be the main asset of an estate.  As long as the TODI is signed with the formalities of a Will (two witnesses and notarized), the TODI is effective once recorded with the County of the real property. Upon the death of the owner, the beneficiary then has to record a "notice of death affidavit and acceptance."  

With the use of a TODI, the transfer of the real property can be less complex and less costly than using a Will or Trust.  It is also revocable if the owner changes his/her mind and wishes to sell the property at any time.  

If you have any questions about preparing an estate plan, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

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