Rancho Ventana Homeowner's Association

For all the property owners in Ranch Ventana, here is a simpler method to assign your property to your beneficiary.

  Revocable Transfer on Death (TOD) deed (note; each owner needs to complete a separate form)

 New Way to Avoid Probate: Transfer on Death Deeds

On Jan. 1, 2016, a new type of deed took effect in California: the Revocable Transfer on Death (TOD) deed, also called a beneficiary deed.

You can use it to name beneficiaries who will receive the property when you die, without the need for probate. This is meant to replace the common practice of adding your heirs to your home as joint tenants.

A joint tenant deed does avoid probate, but it can cause problems of its own. Your “heirs” now legally own part of the home, so their creditors can lien the house, you need their permission to sell or refinance, and it ultimately can lead to higher taxes. You will probably need to file a gift tax return this year. And you can’t change your mind.

With the TOD deed, you can revoke it at any time. Your heirs do not own any of the property during your life, avoiding the above problems. And when you pass away, the transfer is treated as an inheritance, not a gift, so it gets more favorable tax treatment.