South Dakota Transfer-on-Death Deeds Attorneys

Helping Clients Distribute Their Estates for 30 Years

Following your passing, entrusting your property to someone you trust is important. While a will can dictate where a person’s assets will go, a transfer-on-death deed allows those assets to immediately change owners without any risk of going through probate. 

With decades of experience helping clients clarify their wishes, the South Dakota lawyers at Aspen Legacy Planning can help you smoothly assign ownership of your assets to your loved ones. We offer no-obligation consultations, so call today and learn more about transfer-on-death deeds.

Benefits of a Transfer-on-Death Deed

People choose these kinds of deeds because it allows the recipient to immediately have ownership without going through probate. Any property transferred over in the transfer-on-death deed will also come with its accompanying mortgage and debt. Without going through probate, you can rest assured the property will make it where you want it in one piece.

Reasons to utilize a transfer-on-death deed include:

• Retaining complete control over the property up until your death
• Not having to worry about federal gift tax because the property is not gifted
• Being able to change or revoke the deed whenever you so desire

The process may sound like smooth sailing, but like most legally binding documents, trying to handle it on your own is not recommended. With the help of our experienced lawyers on your side, your beneficiary can enjoy your generous transfer of property after your passing. Get started on planning a stable and prosperous future for your loved ones by meeting with an estate legal professional who has your best interests at heart. Contact Aspen Legacy Planning today.

1. Understanding Transfer-on-Death (TOD) Deeds

Definition and Function:
A Transfer-on-Death (TOD) deed is a legal document that allows the owner of real property to designate one or more beneficiaries to inherit the property upon their death, without the need for probate. This means that when the property owner passes away, the named beneficiaries automatically receive ownership of the property. 

TOD deeds can be used for a wide range of real estate, such as homes, land, and commercial properties. In South Dakota, TOD deeds are particularly useful because they bypass the time-consuming and costly probate process. The property owner retains full control of the property during their lifetime, and the beneficiary's interest in the property is only activated upon the death of the owner.

Differences Between TOD Deeds and Wills:
A key difference between TOD deeds and traditional wills is the way assets are transferred. With a will, the property is distributed according to the deceased person’s wishes, but the process requires going through probate court. Probate can be lengthy, expensive, and public. 

On the other hand, TOD deeds allow for an automatic transfer of property directly to the beneficiary, without the need for probate. The TOD deed also provides the property owner with the flexibility to change or revoke the beneficiary designation at any time, as long as they are alive, offering more control than a will. Furthermore, TOD deeds are not subject to estate taxes at the time of transfer, unlike some provisions in a will that might trigger tax obligations.

2. How Transfer-on-Death Deeds Avoid Probate

Streamlining Estate Distribution:
One of the most significant benefits of a TOD deed is its ability to streamline the estate distribution process. Unlike a will, which requires the court’s involvement in the probate process to validate the document and distribute the estate’s assets, a TOD deed automatically transfers ownership to the designated beneficiary. This eliminates the need for a lengthy court process, reducing both the time and the legal fees associated with probate.

Faster Asset Transfer:
Because TOD deeds bypass probate, they enable a much faster transfer of assets. Once the property owner dies, the beneficiary simply needs to file a death certificate with the county, and the property is transferred without any court intervention. 

This speed is beneficial for both the property owner, who retains control while alive, and the beneficiaries, who gain quicker access to the property. This also provides peace of mind, knowing the property will pass directly to the intended recipient without any complications or delays commonly associated with probate.