S-12 Transfer on Death Deeds pg. 2
Will a TODD avoid a mortgage, lien or estate claim against my property?
No, the new owner steps into your shoes at the time of your death. They take the
property along with all mortgages, liens, judgments or other claims against the property.
The TODD does not avoid a claim or lien the state has against your property if you had
Medical Assistance (MA) or General Assistance (GA) in your lifetime.
On the other hand, a TODD won’t keep you from getting MA for nursing home care. You
are not giving any interest away during your lifetime and the new owner takes the
property along with any MA liens.
How do I know my TODD is valid and legally binding?
A TODD has to be recorded with the County Recorder before
the death of the homeowner in order to be valid.
A TODD that was signed before August 1, 2008 is valid as long
as it is recorded on or after August 1, 2008.
You don’t have to give the TODD to the beneficiary during
your lifetime and you don’t need their permission to cancel it.
How is a TODD different than other property ownership methods?
The TODD doesn’t give anyone ownership in the property while you are living.
A joint tenancy gives part ownership to the joint tenant (joint owner) while you are still
alive.
A life estate gives someone a future interest in the property. That person is called the
remainderman. They own the property after your death.
A quit claim deed gives your property away once it is recorded. Talk to a lawyer before
giving your home to your children or someone else in a quit claim deed. You may use a
quit claim deed to avoid probate court but you also put yourself at risk for many legal
problems.
You can’t cancel (revoke) a joint tenancy, life estate or quit claim deed unless all parties,
and their spouses, agree and sign off.
A TODD can be cancelled (revoked) or changed any time before your death. You don’t
need permission from anyone to change your mind.