Transfer on Death Deeds
Today we’ll be discussing the Transfer on Death Deed (“TODD”) and how these deeds can be a useful tool for landowners. Oklahoma authorized the use of a TODD in 2008 by the Nontestamentary Transfer of Property Act. But what exactly is a TODD? Let’s dive in!
First, we must state that a Transfer on Death Deed (“TODD”) can be used as a tool when creating your Estate Plan, but should not be used in replace of your Estate Plan. A TODD can be used to transfer real property, including houses, land, and mineral rights, to another person or party upon the owner’s passing. A TODD will be executed by the landowner, also called the “grantor,” in favor of a person or party called the “beneficiary grantee.” The beneficiary grantee will receive the conveyed property once the landowner passes away (subject to the caveat below), as opposed to a standard deed in which the grantee receives the property upon the execution of the deed. This means that the landowner retains ownership of the land subject to a TODD during their lifetime. Like all deeds, a TODD will be filed with the County Clerk in the county where the property is located.
Additionally, a TODD is revocable, meaning that the landowner can cancel a TODD at any point during their life if they later change their mind about conveying their property. If the landowner wishes to cancel the TODD entirely, they will need to file a special form revoking the TODD. If the landowner wishes to only change who the beneficiary grantee of the property is, they will still need to file a special form revoking the original TODD and a new TODD with the updated beneficiary grantee.
If you are the beneficiary grantee of a TODD, you should know that the property subject to a TODD does not automatically transfer upon the landowner’s death. Action is required of the beneficiary grantee for the property to transfer. The beneficiary trustee must file an Affidavit with the County Clerk where the property is located. Generally speaking, an Affidavit is a written sworn statement of facts that is signed in front of a notary. An Affidavit as it relates to a TODD must contain certain facts, such as death of the landowner and a description of the property, among other requirements as set out by Oklahoma law. This Affidavit must also be filed within 9 months of the landowner’s passing. If this Affidavit is not filed in time, then the property will become part of the landowner’s estate, and will thus have to go through the probate process.
Whether you are a landowner interested in making your own TODD or a grantee beneficiary navigating the process to transfer property subject to a TODD, our attorneys are always happy to help guide you. Click HERE to contact us.