Transfer On Death Deeds For Real Estate Hawaii
What Are Transfer On Death Deeds?
Transfer on Death Deeds (TODDs) are legal documents that allow an individual to transfer their real estate property outside of the probate process. A TODD works by naming a beneficiary who will receive the property upon the death of the owner. This type of deed is also known as a beneficiary deed, transfer on death instrument or a revocable transfer on death deed.
How Do Transfer On Death Deeds Work In Hawaii?
Hawaii is one of the few states that allows for Transfer On Death Deeds. To create a TODD in Hawaii, the owner of the property must complete a form that meets the requirements of Hawaii Revised Statutes Section 560:2-804. The form must be signed, dated and notarized and filed with the Bureau of Conveyances in the county where the property is located.
What Are The Advantages Of Using A Transfer On Death Deed?
The main advantage of using a TODD is that it allows the property to pass outside of the probate process. This can save time and money, as probate can be a lengthy and expensive process. Additionally, a TODD can be easily changed or revoked by the owner at any time during their lifetime.
Who Can Use A Transfer On Death Deed?
Anyone who owns real estate in Hawaii can use a TODD. It is a particularly useful tool for individuals who own real estate as joint tenants or tenants in common, as it allows for the transfer of the property to a named beneficiary without the need for probate.
What Happens If There Are Multiple Beneficiaries?
If there are multiple beneficiaries named on a TODD, the property will be divided equally among them. If one of the named beneficiaries dies before the owner, their share will pass to their heirs or the other named beneficiaries, depending on the terms of the TODD.
Can A Transfer On Death Deed Be Contested?
Like any legal document, a TODD can be contested in court. However, the grounds for contesting a TODD are limited. The main grounds for contesting a TODD are lack of capacity, undue influence or fraud.
Are There Any Disadvantages To Using A Transfer On Death Deed?
One potential disadvantage of using a TODD is that it does not provide any protection for the property owner during their lifetime. If the owner becomes incapacitated or unable to manage their affairs, a TODD will not provide any protection or assistance. Additionally, if the named beneficiary predeceases the owner and no alternate beneficiary is named, the property will go through probate.
What Are The Alternatives To Using A Transfer On Death Deed?
The main alternative to using a TODD is to create a living trust. A living trust provides many of the same benefits as a TODD, but also provides protection for the property owner during their lifetime. Additionally, a living trust can be used to transfer other types of assets, not just real estate.
How Do I Determine If A Transfer On Death Deed Is Right For Me?
The decision to use a TODD or any other estate planning tool should be made in consultation with a qualified attorney. An attorney can help you evaluate your individual situation and determine the best course of action to meet your needs.
Conclusion
Transfer On Death Deeds can be a useful tool for individuals who own real estate in Hawaii. They provide a simple and cost-effective way to transfer property outside of the probate process. However, they may not be the best option for everyone. Consultation with a qualified attorney can help you determine the best course of action to meet your needs.