Many people assume that having a will is enough to protect their assets and ensure they pass to their loved ones. But did you know that adding a Transfer on Death (TOD) designation to your property can save your heirs significant time, money, and hassle?

Think of your will like a funnel—it’s there to catch any "drips" or assets that you may have missed, forgot to assign a beneficiary to, or never got around to updating. However, anything passing through your will must go through probate, which can incur both probate fees and attorney’s fees, typically totaling around 10% of an asset’s value. By proactively naming a beneficiary for your home and other assets, you can avoid this unnecessary expense and the lengthy delays of probate.

The Power of a Transfer on Death Deed for Your Home

For many of our clients, their home is among their most valuable assets, especially in light of recent increases in real estate values. A TOD designation, also known as a TOD deed, allows you to name a beneficiary directly on your property deed. This helps to ensure that the home will automatically transfer to the named person(s) upon your death, without the need for probate.

Adding a TOD beneficiary to your home is a straightforward process that can often be completed at a title company or through your attorney. Here are a few title agencies in the Findlay, Ohio, area that can assist:

• Mid-American Title Agency – (419) 423-8500
• Golden Key Title Agency – (419) 420-3055
• Flag City Title Agency – (419) 425-3821

Each of these agencies can help you execute a TOD deed and handle the necessary paperwork to record the designation with the county recorder’s office.  However, you are under no obligation to use the services of any entities shown and may choose any qualified professional to provide title services.

Why a TOD Designation Matters Beyond Real Estate

While adding a TOD to your home is highly effective, consider the impact of TOD designations across all your assets:

1. Vehicles: For spouses, we recommend jointly owning vehicles with survivorship rights and adding a TOD beneficiary in case of a common accident.

2. Bank Accounts: Many banks offer a “Payable on Death” (POD) option, which is similar to a TOD and allows you to name a beneficiary for your account balance.

3. Investment Accounts: We often set up investment accounts as TOD accounts, allowing for seamless transfer without probate.

4. Retirement Accounts: While most retirement accounts require a beneficiary, it’s wise to review and ensure all beneficiaries are current.

Using a Personal Financial Statement as Your Checklist

We recommend maintaining a personal financial statement that includes an inventory of all your assets. This statement can serve as a checklist, helping you verify that each asset has an assigned beneficiary. This is one of the most efficient ways to avoid probate and reduce the administrative burden on your heirs.

Special Considerations: When an Estate or Trust May Be Beneficial

Although TOD designations are valuable tools, there may be unique circumstances where it’s advantageous for an asset to pass through your estate or for your trust to be the named beneficiary. For example, if your estate planning involves complex distributions, a trust may offer greater control and flexibility over the timing and structure of these distributions.

Take the First Step to Simplify Your Estate Planning

Adding TOD designations to your assets is an effective, often overlooked strategy for reducing the expense and hassle of probate. This small step could prevent unnecessary legal fees and help to ensure that your loved ones have direct, timely access to your assets.

Jackson Wealth Management and LPL Financial do not provide legal advice or services.  Please consult your legal advisor regarding your specific situation.

Ready to discuss your estate planning options and how to best protect your assets? Click here to schedule an appointment with us. We’d be honored to help you tailor a plan that meets your unique goals and preserves your financial legacy.