Avoid probate with TODI Inheritance
To help homeowners make informed decisions about their property, our firm now offers TODI Inheritance Service to instantly transfer the deed of property after the death of a homeowner. But not everyone knows what a TODI is or what it does. No worries. You can learn the basics of Illinois TODIs here.
Go ahead and click on specific questions or keep scrolling.
What are the benefits of a TODI?
Do I need an attorney to set up a TODI?
What are the requirements for a TODI?
What’s a good situation for a TODI?
A Transfer on Death Instrument (TODI) is a “will-equivalent” for real estate. Owners can designate beneficiaries who will instantly inherit the property upon the owner's death. Feel free to schedule a call with John or me (Mike) to see if a TODI is right for your situation.
What are the benefits of a TODI?
A TODI is an inexpensive estate planning option for homeowners, and it simplifies property transfers to beneficiaries. The transfer occurs instantly, allowing beneficiaries to avoid probate, court, delays, and related fees.
It is flexible and cancelable, giving homeowners the opportunity to change their minds or their beneficiary. Also, if a homeowner decides to sells the property, the TODI will automatically become void (the homeowner doesn’t need to do anything to cancel it).
Importantly, a TODI allows the homeowner to retain full ownership rights during their lifetime and prevents any of the beneficiary’s creditors to place a lien on the property while the owner is living.
Do I need an attorney to set up a TODI?
Typically, a TODI is prepared by an attorney, who then records it with the county.
While an attorney may not be legally required, these are legal documents that require precision. Our attorneys will ensure they are properly drafted, signed, and filed. Further, we work to protect your rights, and ensure the TODI suits your situation and estate planning needs.
You can set up a TODI at any time that you own the property. Our firm recommends establishing one soon after a home purchase.
Typically, heirs will have to open a probate proceeding in court or post an expensive bond to transfer the property from the owner’s estate. This can be a complex, timely, and costly process.
Recording a TODI can avoid these steps as well as help reduce the stress involved to grieving relatives when an owner passes. Even in tight-knit families, a TODI can help avoid the emotional burdens in the transfer of property.
What are the requirements for a TODI
Our attorneys can guide you through the process and take care of the details. In Illinois, TODI requirements include:
- The owner of the property must be 18 years of age or older and must be of sound mind and memory.
- It must contain all the elements and formalities of a properly recorded deed.
- It must be signed by the owner of the real property and two credible witnesses, whose signatures must be acknowledged by a Notary Public, which we have on staff.
- It must state that the transfer is effective only after the death of the owner.
- It must be recorded in the office of the Recorder of Deeds in the county in which the property is located.
- This instrument must be recorded before the owner’s death.
What’s a good situation for a TODI?
A TODI works in a multitude of situations and can be a convenient estate planning tool. That said, they are not right for every situation.
Schedule a call with us to assess the benefits and limitations, and mitigate potential risks of using a TODI.
No. A will does not revoke or override a TODI. A TODI prevails over a will.
Our firm focuses on Chicago-area real estate transactions. Our new TODI Inheritance Service is designed to help clients make informed decisions about the future of their property.
To learn more, please schedule a call with John Aylesworth or Mike Wasserman.