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Because transfer-on-death beneficiary deeds do not become effective until you pass away, someone can challenge the validity of the deed after you die. For example, someone can argue that you lacked capacity to create a valid deed. Or, beneficiaries and family members can sue each other to take the property entirely.
If you change your mind after you record a TOD deed, you can always revoke the deed. If you change your mind after you record a TOD deed, leaving real estate to someone at your death, you can revoke the deed. The beneficiary has absolutely no rights over the property until after your death.
A “Revocation of a Beneficiary Deed” is a document that revokes and cancels a beneficiary deed that is filed. This will void any distributions that are made on the beneficiary deed. A property owner may revoke the beneficiary deed anytime before his/her death.
To revoke a transfer on death deed, you can either create a revocation document or create an entirely new transfer on death deed replacing your old one. To create a revocation document, you can go to the county recording office where the document was recorded and request a revocation form.
Assets placed in a living trust can avoid probate, but it's far simpler and less expensive to simply transfer the property by beneficiary deed, also called a transfer-on-death deed, if you live in a state that recognizes this option. Your beneficiary has no legal right to it until your death.
Once you obtain a transfer-on-death deed, complete the form to name a beneficiary. The transfer deed will ask you to name the person(s) you wish to inherit your property. You can name multiple people as the beneficiary, as well as an organization. List the beneficiary's complete name and avoid titles.
In other words, you can challenge a TOD Deed on many of the same bases used to challenge a Trust or Will. The bottom line: you have the right to contest a TOD Deed, just as you can a Will or Trust, but in many cases that will be no easy task.
Because transfer-on-death beneficiary deeds do not become effective until you pass away, someone can challenge the validity of the deed after you die. For example, someone can argue that you lacked capacity to create a valid deed. Or, beneficiaries and family members can sue each other to take the property entirely.
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