Washington State’s New Transfer On Death Deed
Washington is joining several other states in allowing the use of a Transfer on Death Deed to transfer real property to a designated beneficiary at the time of death. This nonprobate transfer tool will become effective on June 12, 2014.
A Transfer on Death Deed is a new method in Washington for leaving your real estate to a beneficiary without going through the probate process. The beneficiary will not have any rights to your property while you are alive, but upon death the property will transfer to your beneficiary.
A few important things to remember, though:
- The deed can be revoked during your lifetime.
- The deed will include any taxes, mortgages, or liens already on the property.
- If you own the property jointly, the transfer on death deed will not apply until all the owners have died.
- You can name alternate beneficiaries if the first choice beneficiary you select refuses the property or does not survive you.
The Transfer on Death Deed needs to be executed and recorded, and the maker must have the same capacity required to execute a Will. What if you are named the beneficiary of a Transfer on Death Deed, but do not want the property? You are free to disclaim your interest and it will pass to the next named beneficiary.
If you are unsure about whether a Transfer on Death Deed should be part of your estate plan, please contact a Beresford Booth estate planning attorney to discuss your options.