Transfer On Death Deeds

October 2011- Download the PDF 

Since July 1, 2009, a new chapter under the Indiana Code has been in effect entitled, Transfer on Death Property Act (I.C. 32-17-14). This chapter creates a new vehicle on how to plan for the transfer of real property upon death. It will allow owners to create a transfer on death (TOD) deed that conveys an interest in real property to a grantee by beneficiary designation.

Some of the pertinent provisions of IC 32-17-14-11 are as follows:

• A transfer on death deed transfers the interest provided to the beneficiary if the transfer on death deed is:

  1. executed by the owner or owner’s legal representative; and
  2. recorded with the recorder of deeds in the county in which the real property is situated before the death of the owner.
• A transfer on death deed is void if it is not recorded with the recorder of deeds in the county in which the real property is situated before the death of the owner.
• A transfer on death deed is not required to be supported by consideration or delivered to the grantee beneficiary.
• A transfer on death deed may be used to transfer an interest in real property to either a revocable or an irrevocable trust.
• A beneficiary designation in a transfer on death deed may be worded in substance as “(insert owner’s name) conveys and warrants (or quit claims) to (insert owner’s name), TOD to (insert beneficiary’s name)”. This example is not intended to be exhaustive.
• The endorsement of the auditor under IC 36-2-11-14 is not necessary to record a transfer on death deed.

A sales disclosure form is not required at the time of the recording of the TOD Deed as the deed is not a present transfer to the beneficiary. IC 32-17-14-26(b)(20) provides that on the death of an owner whose transfer on death deed has been recorded, the beneficiary shall file an affidavit in the office of the recorder of the county in which the real property is located. The affidavit must be endorsed by the county auditor under IC 36-2-11-14 in order to be recorded.

Given the specific needs of each individual and the need to determine if a TOD Deed is the right vehicle it is strongly recommended that an individual seek the guidance and counsel of an attorney knowledgeable in the area of probate for more information.

*The information in this flyer should be considered as general information and should not be taken as legal advice.

Contact your Account Manager for more information

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