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Simple English definitions for legal terms
transfer-on-death deed
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A quick definition of transfer-on-death deed:
A transfer-on-death deed is a legal document that allows a person to transfer their property to a chosen beneficiary after they pass away. This means that the beneficiary automatically becomes the owner of the property without having to go through a long and complicated legal process called probate. The beneficiary can be a person or an organization, and a backup beneficiary can also be named in case the first one is unable to receive the property. However, the beneficiary cannot access the property until the owner has passed away. This type of deed is also called a beneficiary deed.
A more thorough explanation:
A transfer-on-death deed is a legal document that allows a property owner to transfer their property to a designated beneficiary upon their death without going through probate. This means that the beneficiary automatically becomes the owner of the property after the death of the property owner.
For example, if John owns a house and wants to leave it to his daughter Jane after his death, he can create a transfer-on-death deed that names Jane as the beneficiary. When John dies, Jane will become the owner of the house without the need for probate.
The beneficiary named in the transfer-on-death deed can be an individual or an organization, such as a charity. A substitute or successor beneficiary can also be named in case the first beneficiary dies before the property owner.
It's important to note that the beneficiary does not have access to the property until the death of the property owner. The transfer-on-death deed simply ensures that the property will pass to the beneficiary without the need for probate.