St. Charles Transferable on Death Instrument (TODI) Lawyer
Transferable on Death Instrument (TODI) Attorney in St. Charles, Illinois
Take charge of your legacy today; contact us to start building an estate plan that provides peace of mind and protection for your loved ones.
Creating an estate plan to transfer assets upon your death is an education in finance and law. Estate planning is a complex undertaking with distinct rules on legality and validity. When you’re ready to legally protect your assets so they transfer to specific beneficiaries, consider hiring an experienced and local St. Charles transferable on death instrument (TODI) lawyer from Nowling Law, LLC.
Nowling Law, LLC offers clients a local law firm with over four decades of experience in Illinois estate and real estate law and financial planning. When you are ready to legally protect your estate, we can guide you through all the various options and find the ones that serve your unique needs.
Why Add a TODI to Your Estate Plan?
In the US, we have an issue with estate planning. Only about 24% of Americans use a traditional will, 13% use a trust, and 4% use other documents. For many, having an attorney create a trust or an entire estate plan that includes a durable power of attorney, a healthcare power of attorney, a living will, and a HIPAA release can be a lot.
When dealing with so many of life’s everyday problems, taking the time to secure your family’s future and protect the assets you have doesn’t seem as important as it is. If you are not ready to create a full estate plan, consider a transferable on death instrument as a secure way to pass real estate property to your heirs.
A TODI is a lower-cost option for directly transferring ownership of real estate property after you die and bypassing the probate process at the Kane County Courthouse. A TODI allows you to transfer real estate property to a single beneficiary or multiple beneficiaries. However, you retain control over the property during your lifetime.
If you are the beneficiary of a TODI, and the property has an existing mortgage or other liens, it is your responsibility to arrange to make payments.
A TODI works well when you are the sole owner of a real estate property, but it does not offer any tax avoidance benefits and becomes eligible for estate taxes when it transfers. For more complex estates, or when the property is jointly owned, a revocable living trust may be a better choice.
St. Charles
Practice Areas
TODI Laws in St. Charles, Illinois
Illinois TODI laws require the following rules for a valid, legal TODI:
- Must be recorded with the County Recorder (Kane or DuPage for St. Charles residents).
- Must be drafted to legal specification by a licensed real estate or estate lawyer
- A TODI must be signed by the owner and two witnesses with no interest in the estate.
- Both the witnesses’ and the owner’s signatures must be notarized.
A TODI can be invalidated if another party files a conflicting will or deed to the property. The property owner or beneficiary is liable for the deceased’s debts for up to 2 years. When creating a TODI, it’s advisable to hire a transferable on death instrument lawyer from Nowling Law, LLC to avoid issues with legality and enforceability.
TODIs can get complicated and, in some cases, end up in probate. Consider consulting with our St. Charles transferable on death instrument attorney to help you draft a TODI that lists multiple beneficiaries that can help avoid being pulled into the long and costly probate process. Be certain to speak honestly with your attorney so your TODI truly represents your needs.
When recording a TODI, St. Charles residents need to confirm if they are in Kane or DuPage County and go to the respective county office:
- Kane County Recorder of Deeds at 719 S. Batavia Ave, Building C in Geneva.
- DuPage County Recorder of Deeds at 421 N. County Farm Road in Wheaton.
When Is a Trust Better Than a TODI?
If you own multiple properties, have several beneficiaries, and assets that exceed the small estate property threshold in Illinois, you may consider a trust instead of a TODI to further protect your assets and their distribution. However, if organizing and managing a trust is not in your budget, a TODI is an affordable, effective tool that can stand alone well and ease the transfer of property to your beneficiaries.
Tax Concerns With Transferable on Death Instruments
Because a TODI is not a trust, it cannot prevent estate taxes from being imposed against the value of the estate. However, certain estate value thresholds may mitigate the amount of estate taxes your beneficiaries may be required to pay. Small estates benefit most from TODI arrangements.
A TODI is most effective when it is part of an overall estate plan that accounts for all of your assets and their distribution after your death. The advice of a skilled estate planning lawyer in Rolling Meadows can help you determine whether your estate exceeds the value threshold where a trust may be more beneficial than a TODI.
FAQs About St. Charles, IL Transferable on Death Instrument (TODI) Laws
What Are the Advantages of Using a Transferable on Death Instrument as Part of an Estate Plan?
The advantages of using a transferable on death instrument as part of an estate plan include the ability to bypass probate and transfer ownership directly after your death. During your lifetime, you retain full control of the property, and there’s no need to add names to the deed. A TODI is revocable and can be changed and recorded by the county at any time prior to the owner’s death.
Does an Attorney Have to Prepare a TODI in St. Charles, Illinois?
A TODI is not required to be prepared by an attorney in St. Charles, Illinois; however, using an experienced TODI or estate planning lawyer is recommended to verify that the document meets all the legal requirements in the Illinois TODI laws. Check your county recorder of deeds office to see if they have a preprinted or online form you can fill out.
What Are the Disadvantages of a TODI as Part of Your Estate Plan in Illinois?
The disadvantages of using a TODI as part of your estate plan in Illinois are that it can only be used on real estate property, it offers no tax advantages, and it provides no protection if an owner becomes incapacitated. A TODI must also be recorded in the county of the owner’s residence and can be automatically entered into the probate process if the named beneficiary predeceases the owner.
Is a Revocable Living Trust More Useful Than a TODI to Transfer Real Estate?
A revocable living trust can be more useful than a TODI to transfer real estate. With a trust, you can pass real estate directly to your beneficiaries and protect the estate if the owner becomes incapacitated prior to death. A trust avoids probate like a TODI but does not have to be recorded at the county office. A trust does a better job of protecting the estate from creditors and estate taxes.
Hire a Transferable on Death Instrument Lawyer From Nowling Law, LLC
When you are ready to create a TODI, we are here to provide you with legal guidance. The experienced transferable on death instrument lawyer at Nowling Law, LLC, is passionate about alleviating your future worries with a legal and valid TODI. Contact us today to see how we can help you secure your legacy.
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