{"id":2359,"date":"2022-07-22T10:00:00","date_gmt":"2022-07-22T14:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2359"},"modified":"2024-07-22T22:58:56","modified_gmt":"2024-07-23T02:58:56","slug":"staying-informed-about-california-transfer-on-death-deeds","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/staying-informed-about-california-transfer-on-death-deeds\/","title":{"rendered":"Staying Informed About California Transfer on Death Deeds"},"content":{"rendered":"\n
\"\"
Tightening Up the Rules<\/figcaption><\/figure>\n\n\n\n

This year has been an interesting one for California\u2019s revocable transfer on death deed<\/em>. Beginning in 2022, California homeowners using TOD deeds (sometimes just called TODDs) must have two adult witnesses sign the document. So, for a valid TOD deed, you must sign the document, have your signature notarized, have two witnesses, and file the deed for public recording with the county within 60 days once it\u2019s notarized.<\/p>\n\n\n\n

First, no need to panic. If your California TOD was properly recorded before Jan. 1, 2022, it will still be a valid document.<\/p>\n\n\n\n

Now, let\u2019s look at the California TOD deed in its updated form.<\/p>\n\n\n\n\n\n\n\n

The Reason for a TOD Deed<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

The transfer on death deed<\/em>, in California and other states that allow it, easily lets someone have a home after the homeowner dies. It can apply to a fixed-in-place mobile home, or a standard home or condo property (a property with one to four residential units), or a rural home with no more than 40 acres of farmland.  <\/p>\n\n\n\n

People like the TOD deed because, if all goes to plan, it\u2019ll avoid placing a home in probate court when the owner dies. The TOD deed will effect the change in ownership itself.<\/em><\/strong><\/p>\n\n\n\n

It\u2019s relatively cheap and easy, compared to a revocable living trust. And it brings similar tax advantages as a trust or will.<\/p>\n\n\n\n

If you transfer your home this way, you are called the transferor<\/em>. The party who gets your home upon your death is called the beneficiary.<\/em> People, trusts, and legal entities can be beneficiaries. (If the TOD deed names more than one beneficiary, all recipients will receive the home in equal shares.)<\/p>\n\n\n\n

And the homeowner can change the TOD deed by revoking it and creating a new one.<\/p>\n\n\n\n

Also, the homeowner can still refinance or sell a property with a TOD deed. Not until the homeowner\u2019s death do the beneficiaries assume control over the property.<\/p>\n\n\n\n

Of course, the beneficiary has to actually outlive the transferor for this to work. The beneficiary will also have to satisfy any debt secured by the home.  <\/p>\n\n\n\n

Can co-owners create TOD deeds? Yes. If co-owners want to use a TOD deed, they must each sign a separate one.  <\/p>\n\n\n\n

\u261b<\/em> For information on joint ownership, see <\/em><\/strong>How\u2019s Your Property Vested? It Matters as Much as Your Will or Trust<\/em><\/strong><\/a>.<\/em><\/strong><\/p>\n\n\n\n

Note that a TOD deed will never cancel out a joint owner\u2019s right of survivorship. This is because the house is vested in a way that gives the joint tenant automatic ownership. In other words: The TOD deed is NO GOOD if the co-owner on your current deed has survivorship rights.<\/p>\n\n\n\n

Getting It Done<\/em><\/h2>\n\n\n\n

Considering a transfer on death deed? <\/em>California has updated the rules, as we\u2019ve previously noted it would<\/em><\/a>.<\/em><\/p>\n\n\n\n

The <\/em>Sacramento County Public Law Library<\/em><\/a> offers full information on filling out the TOD deed. Reminder: Always check your new document for any mistakes or typos.<\/em><\/p>\n\n\n\n

Counties have slightly different requirements for deed filings. For instance, in some counties you will need an instrument number given a deed by the county recorder’s computer system.<\/em><\/p>\n\n\n\n

At Deeds.com, we offer state-specific <\/em>Transfer on Death Deed Forms<\/em><\/a> for downloading.<\/em><\/p>\n\n\n\n

What Are the Updates in California?<\/h2>\n\n\n\n

The law has been adjusted in several ways. And the homeowner must be sure to use California\u2019s updated deed form for TOD deeds created from 2022 onward.<\/p>\n\n\n\n

Some of the legal updates make things easier on the homeowner. For instance, new language in the California Probate Code enables the courts to modify an ambiguous TOD deed so that it holds up legally, as long as the owner\u2019s intentions<\/em> are clear.<\/p>\n\n\n\n

There are two especially notable changes that make the California TOD deed more secure:<\/p>\n\n\n\n