Probate can be costly and time consuming. There are several ways to avoid probate through the way that real property is titled.
The two most common methods are:
Joint Tenancy with Rights of Survivorship: Upon the death of one owner, the property automatically transfers to the other.
Community Property with Rights of Survivorship: This works essentially the same as Joint Tenancy and may be utilized only by married couples.
Neither addresses the issue if both persons perish together. Then, probate will still be necessary. In addition when a widow/widower adds adult children onto their title, they needlessly subject the property to the creditors of the child!
The DEED UPON DEATH is a deed in which the owner of an interest in property (the “Grantor”) executes a deed which designates one or multiple beneficiaries.
Did you know?
* The Grantor may designate multiple beneficiaries take title to the property upon his or her death as joint tenants with right of survivorship, tenants in common, husband and wife as community property, community property with right of survivorship or any other tenancy that is recognized in this State.
* The Grantor may designate that the beneficiary or beneficiaries who will take title to the property upon his or her death as the sole and separate property of the beneficiary or beneficiaries without the necessity of the filing of a quitclaim deed or disclaimer by the spouse of any beneficiary.
* The Deed becomes effective upon death, if properly recorded, and does not require notice or consideration to have been paid by the designated beneficiary.
* The Deed doesn’t affect an interest or right of the owner, including, without limitation, the right to transfer or encumber the property.
* The Deed doesn’t affect an interest or right of a secured or unsecured creditor or future creditor of the owner, even if the creditor has actual or constructive notice of the deed.
* The Deed doesn’t create a legal or equitable interest in favor of the designated beneficiary. Therefore, the property is not subject to claims or process of a creditor of the designated beneficiary.