Homeowners: What To Do If You Can't Afford A Trust

Real Estate

I received a call from a concerned client the other day regarding a need to put a parent's home in a trust.

My client's parent is sick, and they are worried about what will happen to the family home in the event of a death. The home is not currently in a trust, and my client and their family don't have the money to have a trust made right now.

Hearing their concerns, I told them about a new bill I heard about that came into effect January 1, 2016 and will last until 2021. The bill allows the owner of a home to deed their property through a Transfer on Death Deed (TOD Deed), which allows the home to be transferred to a person named on the deed at the time of the homeowner's death without the property being required to be in a trust or will. The Transfer on Death Deed does need to be recorded on title, but it doesn't change any ownership or ability to sell the home. The TOD Deed is totally revocable, so you can update it or change it as necessary. This type of deed is a convenient option and can take care of concerns about property transfer on death if you don't have the means for a trust or a will.

As always, I recommend that you double check with an attorney regarding this type of deed transfer. My brokerage's attorney agreed that researching the options before taking any action is the best thing to do in any situation regarding property ownership and/or transfer.

The Bill that put this TOD Deed option into effect is Assembly Bill 139, effective: January 1, 2016. For details on the bill, Click Here.

This is Diana Margala, Real Estate Professional at Re/Max Time in Rancho Cucamonga. If at any time you have a question that needs to be answered, call me at 909-560-0145.

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