Transfer on Death (TOD) Deeds
Avoiding probate is a crucial aspect of effective estate planning. Probate is the court-supervised process of transferring ownership of assets from a deceased individual to their heirs—typically spouses or children. A Transfer on Death (TOD) deed is one tool that can be used to bypass the often time-consuming and costly probate process when it comes to real estate property, such as your home.
The Evolution of TOD Deeds in Oklahoma
Previously governed by the Nontestamentary Transfer of Property Act, codified at 58 O.S. § 1251 et seq., the TOD deed process has seen several amendments since its adoption in 2008. These changes were aimed at tightening requirements and clarifying procedures:
2008: The Act allowed a simple recording of a deed naming a beneficiary.
2010: Beneficiaries were required to file an affidavit with proof of death to accept the property.
2011: Beneficiaries had to file the affidavit within nine months of death, or the property would revert to the estate.
2013: The Act clarified that the 2011 change would not be retroactive before the date of November 1, 2011.
Recent Clarification (Effective November 1, 2023) A critical update to the Act now requires that each beneficiary must separately file an affidavit to accept the property for themselves within nine months of the property owner’s death. However, an affidavit filed on behalf of other beneficiaries prior to the November 2023 update, is still considered valid.
This change was partly influenced by a case handled by Sullivent Law Firm. In that instance, a grandson filed an affidavit on behalf of two other beneficiary grandsons, but the title attorney rejected their deed, leading to an unnecessary probate proceeding. The statutory clarification, although somewhat inconvenient, was a necessary and helpful change.
Is a TOD Deed Right for You?
While TOD deeds can be a powerful tool for avoiding probate, they are not a one-size-fits-all solution. Factors such as family dynamics, the complexity of assets, and specific estate planning goals should all be considered.
Let Us Help You Make the Right Choice
Navigating estate planning options can be complex. At Sullivent Law Firm, we’re here to help you determine whether a TOD deed or another estate planning tool is the best fit for your situation. Contact us today for a consultation and personalized guidance.
