What Is a Transfer on Death (TOD) Designation Affidavit—and Should You Use One in Your Estate Plan?
When planning for the future, many people want to make things as simple as possible for their loved ones. One way to streamline the transfer of real estate after your death is with a Transfer on Death (TOD) Designation Affidavit. This powerful, but sometimes overlooked tool, can help your heirs avoid probate and gain peace of mind.
What Is a TOD Designation Affidavit?
A Transfer on Death Designation Affidavit is a legal document that allows you to name a beneficiary who will automatically receive your real estate upon your death. In Ohio, this can be used for your home, rental properties, or other real estate holdings.
The best part? The property doesn’t go through probate. Instead, it passes directly to the person, people, or entity (such as a trust) you name, similar to a payable-on-death (POD) designation on a bank account.
How Does It Work?
The TOD Designation Affidavit is recorded with the county where the property is located while you are alive. It doesn't affect your ownership or rights, and you can sell the property, refinance it, or revoke the affidavit at any time. Upon your passing, the named beneficiary simply records a Transfer on Death Confirmation Affidavit along with a death certificate and original TOD Designation Affidavit to claim the property.
Why Use a TOD Designation Affidavit?
The main advantage is avoiding probate, which can save your heirs time, legal fees, and stress. It also keeps the transfer private and allows for a smoother transition of ownership.
A TOD is especially helpful when:
The real estate is one of your primary assets
You want to avoid the cost and delay of probate
You have a simple estate plan and want a straightforward way to pass on property
TOD Designation Affidavit With or Without a Trust
If you don’t have a trust, a TOD Designation Affidavit can help ensure that real estate passes directly to your chosen beneficiaries, even if you don’t have a will or other estate planning documents in place.
If you do have a trust, a TOD Designation Affidavit can be a useful tool, depending on how your trust is structured and what assets it holds. Every plan is unique, and the right choice depends on your goals, the structure of your trust, and your overall estate.
Is a TOD Designation Affidavit Right for You?
A Transfer on Death Designation Affidavit is a flexible and cost-effective tool, but it’s not a one-size-fits-all solution. The best approach depends on your full estate plan and what you want for your loved ones.
If you’re unsure whether a TOD Designation Affidavit is the right option for your property, reach out to us today.
We’ll help you understand your choices and design a plan that protects your assets, avoids probate, and gives you peace of mind.
The information provided in this blog is for informational purposes only and does not constitute legal advice.
