Due to events happening in the world right now, estate planning remains more crucial than ever before. It provides peace of mind and can cover many aspects of your life. It can even go so far as to protect your loved ones after you pass.
We’ve previously mentioned the importance of adding a will and power of attorney clauses to your estate planning efforts, and now we’d like to highlight the Transfer on Death Deeds (TODD). This clause protects your property and gives you authority to name heirs. Learn how this document works with the help of our estate planning lawyers in McAllen!
What is a TODD?
A TODD allows you to maintain ownership rights of properties during your lifetime. It also gives you full authority to sell your property or use it as collateral on loans. With a TODD, you can also hand rights over to beneficiaries. You can name anyone, including relatives.
Which Types of Property Are Protected?
TODDs cover physical property but cannot be used to transfer personal property like furniture, jewelry, or china to beneficiaries. Properties that TODDs cover include:
- Uncut timber and minerals
- Structures like homes and businesses
Does a TODD Replace a Will?
Regardless if you draft a will or not, your physical property must go through the probate court system. However, having a TODD can help your self-interests. Keep in mind that a will covers many areas that a TODD doesn’t, such as:
- Business ownerships and proprietorships.
- Medical decisions needing to be made if one is incapacitated.
- Deciding who receives one’s finances and investments after they pass.
Speak to Our Estate Planning Lawyers
Before drafting any estate planning documents, speak to our lawyers in McAllen. Contact us for a consultation today!