Georgia’s New Transfer on Death Deeds: A Simple Way to Protect Your Property

As of July 1, 2024, Georgia property owners have a new option for estate planning: the Transfer on Death (TOD) Deed. This legal tool allows you to name a beneficiary who will inherit your property automatically when you pass away, without the need for probate. It’s a straightforward and effective way to ensure that your property goes to the person you choose, and it offers some important benefits for property owners. In this blog post, we’ll explain what a TOD Deed is, how it works, and what you need to know if you’re considering one.

What Is a Transfer on Death Deed?

A Transfer on Death (TOD) Deed is a special type of deed that allows you to transfer ownership of your real estate to a beneficiary upon your death. Unlike a regular deed, which transfers ownership immediately, a TOD Deed only takes effect after you die. This means that during your lifetime, you remain the full owner of your property and can sell, mortgage, or change your mind about who will inherit it.

How Does a TOD Deed Work?

Setting up a TOD Deed in Georgia is a relatively simple process. Here’s how it works:

1. Creating the Deed: To set up a TOD Deed, you’ll need to prepare a deed that names your chosen beneficiary. This person is called the Grantee beneficiary. The deed must include a legal description of the property and be signed and recorded with the county clerk where the property is located.
2. Maintaining Control: One of the biggest advantages of a TOD Deed is that you keep full control of your property during your lifetime. You can sell it, take out a mortgage, or even revoke the TOD Deed if you change your mind. The Grantee beneficiary has no rights to the property until after your death.
3. Transfer of Ownership: When you pass away, the property automatically transfers to the Grantee beneficiary. To finalize the transfer, the beneficiary must record an affidavit with the county clerk within nine months of your death. This affidavit must confirm your death, state whether you were married to the Grantee beneficiary at the time of your death, and include a copy of your death certificate.
4. Avoiding Probate: One of the main benefits of a TOD Deed is that it allows your property to avoid probate. Probate is the court process that happens when someone dies, and it can be time-consuming and costly. By using a TOD Deed, your property passes directly to your chosen beneficiary without the need for probate.

Important Considerations

While TOD Deeds offer many benefits, there are some important things to consider:

1. Encumbrances on the Property: If you have any mortgages, liens, or other debts tied to your property, these remain in place even after the property is transferred to the Grantee beneficiary. The beneficiary will inherit the property along with any outstanding debts.
2. Spousal Rights: The rights of a Grantee beneficiary under a TOD Deed are superior to those of a spouse you marry after the deed is executed. This means that if you marry after recording a TOD Deed, your new spouse will not have a claim to the property unless you update or revoke the deed.
3. Revocability: One of the great features of a TOD Deed is that it can be revoked or changed at any time before your death. If your circumstances change, you can simply execute a new deed or revoke the existing one.
4. Grantee’s Responsibilities: It’s important for the Grantee beneficiary to understand that they must take action after your death to claim the property. If they don’t record the necessary affidavit within nine months, the property will revert back to your estate.

Is a TOD Deed Right for You?

A TOD Deed can be a valuable tool in your estate planning, especially if you want to ensure that your property passes directly to a specific person without the delays and costs of probate. However, it’s important to consider your overall estate plan and whether a TOD Deed fits your needs. For example, if you have multiple properties or complex family dynamics, you may need to explore additional or alternative estate planning strategies.

In short, Georgia’s new Transfer on Death Deed offers a simple and effective way to manage the transfer of your property after your death. By understanding how it works and the responsibilities involved, you can make informed decisions that help protect your assets and provide for your loved ones. If you’re interested in setting up a TOD Deed or have questions about how it fits into your estate plan, contact Edwards Law today to learn more about how we can assist you in securing your property’s future.