Deed [on home] Discrepancy

[Snazzylass]

In North Carolina, deeds typically just give the boundaries of the property, but real estate laws vary considerably between states. What is true in one state, may not be true in another. You need advice from a professional in your state.

In North Carolina, we have always been able to arrange something that is close to a TOD. The typical way to do that is to deed the property to the heir and reserve a life estate in the grantors. The problem is that if you ever decide to sell it, the heir has to join in the deed.

CAUTION!! A life estate can been done in any state, but its uses are much more selective than you are suggesting. I would urge anyone considering this tool to think long and hard about "what if" the opposite happens? As the property owner, you are giving up your future rights to use your property as you wish including getting a HELOC, etc.

 

[Snazzylass]

I assume setting up a trust / specific trusts would accomplish TOD basically if they're a followon trustee?

Ugh! A Trust would be a long way around the barn IMO. The main person to benefit would be the attorney who sets it up. TOD is so simple and direct and specific!

 

[jp10558]

I don’t know what a following trustee is.

I do know we didn’t need a trust since we have beneficiaries on everything. Except cars ( not allowed in NH) and Treasury accounts ( treasury does not allow secondary beneficiaries for some weird reason)

With a revocable trust you change the deed into the trusts name. You are the original trustee who can control the whatever as if you were the owner. You also specify a successor and when you die, that successor becomes the trustee and then directs the asset as if they were the owner. I think there's some stuff about moving it out of the trust eventually, but that's what lawyers or searching up that info for your state is for.

More generally I do wonder, if even real estate can TOD - I assume this is like beneficiaries on a bank account - does this basically negate the function of a Will and just get rid of the "legacy" method of that? I just wonder if we'll see these TOD stuff start to accumulate stuff "like probate" because there's reasons Will's were processed like that in the first place.

 

[Brett]

Ugh! A Trust would be a long way around the barn IMO. The main person to benefit would be the attorney who sets it up. TOD is so simple and direct and specific!

Absolutely. My parents had a trust but it was set up when the estate tax exclusion was $600,000, now it's $14 million
Just set up all financial accounts with beneficiaries and title the real estate with named beneficiaries

 

[WinniWoman]

With a revocable trust you change the deed into the trusts name. You are the original trustee who can control the whatever as if you were the owner. You also specify a successor and when you die, that successor becomes the trustee and then directs the asset as if they were the owner. I think there's some stuff about moving it out of the trust eventually, but that's what lawyers or searching up that info for your state is for.

More generally I do wonder, if even real estate can TOD - I assume this is like beneficiaries on a bank account - does this basically negate the function of a Will and just get rid of the "legacy" method of that? I just wonder if we'll see these TOD stuff start to accumulate stuff "like probate" because there's reasons Will's were processed like that in the first place.

Oh I know what a revocable trust is. I just didn’t know what you meant by a followon trustee.

A lot of states allow TODs on homes (and some even for cars). This allows the home to avoid probate and pass directly to the beneficiary. The probate process can be long and expensive and a big hassle. This avoids all that. And it’s cheaper than setting up a trust if that’s the only reason you set one up.

As I mentioned, we don’t need a trust because we have beneficiaries on everything except the cars and one account. We don’t have any extenuating circumstances. Our situation is simple.

You still should have a will for x number of reasons though.

 

[easyrider]

This is hanging on me now because here we wanted to make things easier for our son and I don't want this to be an issue later on for him.

If you don't get if figured out what is the worse that could happen ? Wouldn't your son get the house anyway ?

Bill

 

[WinniWoman]

If you don't get if figured out what is the worse that could happen ? Wouldn't your son get the house anyway ?

Bill

Absolutely. I just like to dot my I’s and cross my t’s.

I don’t want anything to make things any more difficult whether we decide to sell the house or our son inherits it. So I’ll see what the real estate atty says - if it needs to be corrected or not.

 

[geekette]

Absolutely. I just like to dot my I’s and cross my t’s.

I don’t want anything to make things any more difficult whether we decide to sell the house or our son inherits it. So I’ll see what the real estate atty says - if it needs to be corrected or not.

Yeah, I don’t blame you. Nobody needs extra obstacles or hassles later. Your peace of mind asap is valuable. I get the idea that you always have things in order because you are wired for it (and why the heck shouldn’t things be done, correctly, timely, etc.) and dangling threads like this that drag on , do a drag on you. I tend towards procrastination but have gotten better because of that “hanging over my head” feeling that has gotten heavier as I get older. I’m frustrated for you, seems like an error that should never have been made.

 

[WinniWoman]

Yeah, I don’t blame you. Nobody needs extra obstacles or hassles later. Your peace of mind asap is valuable. I get the idea that you always have things in order because you are wired for it (and why the heck shouldn’t things be done, correctly, timely, etc.) and dangling threads like this that drag on , do a drag on you. I tend towards procrastination but have gotten better because of that “hanging over my head” feeling that has gotten heavier as I get older. I’m frustrated for you, seems like an error that should never have been made.

Yes- I have always been the proactive type for most things. I hate when things are hanging.

Except I admit I have been procrastinating about a couple of health issues which was never like me, but that’s a whole ‘nother story.

I think today might be the day I finally call the doctor’s office.