A man lives and works for his family and loved ones for his entire life. Family is a universal reality and people regard it as one of the most important part of their lives. As they say, “The family is the test of the freedom; because family is the only thing that the free man makes for himself and by himself.” You work for day and night to provide a good life to your family which includes good food, education and clothing so that you live equally by the standards of society. You build a beautiful house that caters all the needs of your family. It doesn’t matter whether you do a job or run a business. The ultimate goal is to provide them with all the necessities of life as you age so that they can stand on their feet and the cycle continues.
Planning for Family
Like life, death is a universal truth, too. So a wise person thinks accordingly and makes proper arrangements in his life for his loved ones ahead of his death. They usually create a will or prepare deeds legally in transferring inheritance to their loved ones so that after death the family won’t have to face the financial crossroads let alone the departure of the loved one. There are many legal and social aspects to the transfer of property. However, this works differently for different people according to the circumstances they have. Imagine an eighty-year old woman whose spouse has recently passed away. That woman is now the only owner listed on the deed to her home. Her only asset is her home. She has children, but they are living the typical American lifestyle of “spend first, save later” and have mortgages, auto loans, and credit card debt—with little money saved. The woman would like to give her homestead to one of her children when she passes away – the one who has assisted her the most in her old age, but also wants to make sure she can continue living in her home until that time comes. Until recently in California, the woman had several options to achieve this transfer, but none of them allowed her to retain full interest in the property until her death, at little or no cost to the woman or her family. Some of her options would cost money up front, but she would be able to retain full interest in her property until death. Other options would cost the woman little to no money, but would transfer an interest in the property to her child immediately. The woman’s final option, transferring the property in her will, would likely only cost the amount her attorney charges for such a document, but her property would have to be sent into the probate process to effectuate the transfer. In recent years, California gave this woman a new option, the transfer on death deed.
A Transfer on Death Deed (“TOD Deed”), or also commonly referred to as a beneficiary deed, is a form used in the world of estate planning to avoid the need to enter into probate when an individual has minimal assets.
With all the procedural framework and proper legislative work, this process has become way easier than before and has got the following important advantages:
Retained control of wealth during one’s lifetime.
Continuity of ownership within the family.
Federal income tax is not imposed on death deeds.
With the process becoming more hassle free, legal work has been minimized and much of legal fee can now be saved.
Because as they say, “Love begins at home and your family is your strength.” Now you can make sure they always stay strong.