In California, homeowners have several ways to transfer their property to heirs without going through probate. While living trusts are a common method, they often require a lawyer and extensive paperwork. Adding heirs as joint tenants is another option, but it can lead to complications like higher taxes, liens, and issues with refinancing.

A simpler and more flexible alternative is the Transfer on Death (TOD) deed, also known as a beneficiary deed. This lets homeowners transfer their property to designated beneficiaries without probate, and it can be revoked if needed. Here’s a quick guide on how to use a TOD deed:

1. Form and Notarization: Fill out a specific TOD form, have it notarized, signed by two witnesses, and recorded with the County Recorder’s Office.

2. Accuracy: Ensure all details match your current deed exactly.

3. Recording: The form must be recorded within 60 days of signing and notarizing.

4. Beneficiaries: Clearly list the names of your beneficiaries.

You can revoke a TOD deed anytime by notarizing and recording a revocation form. Upon the homeowner’s death, beneficiaries need to follow specific steps to transfer the property, including notifying legal heirs and recording an affidavit of death.

The TOD deed is advantageous over joint tenancy as it avoids immediate ownership transfer, which can complicate selling, refinancing, and tax situations. Joint tenancy might still be suitable if the heir is helping with payments or living on the property and needs an ownership interest.

Comparison of Deed Forms

In California, there are various deed forms for transferring property titles, including quitclaim deeds, grant deeds, and the revocable transfer on death (TOD) deed. Here’s a quick look at these options:

1. Quitclaim Deed: Transfers any interest the grantor has in the property without warranties. Often used to clear up title issues or transfer property between family members.

2. Grant Deed: Includes warranties that the grantor has not transferred the property to anyone else and that the property is free of undisclosed encumbrances. Commonly used in property sales.

3. Revocable Transfer on Death (TOD) Deed: Does not transfer a present interest in the property but designates beneficiaries to receive the property upon the owner’s death without probate. Primarily used for estate planning.

Recording deeds is necessary for proper notice to third parties and for title insurance purposes, even though it’s not always required by law. Similarly, notarization is essential for recording deeds and providing notice to third parties.

This information is intended for general purposes and not as legal advice. Laws and regulations can change, so it’s important to seek professional advice before making decisions based on this content.

Using a TOD deed can provide a straightforward way to manage property inheritance without the complications of joint tenancy. Understanding the different deed forms available can help homeowners make informed decisions about estate planning and property transfer.