MEANING
Transfer of death deed means when the owner of the property transfers his ownership of estate to whom he wants to transfer at the owner’s death. It is a method for avoiding probate of real estate when the owner does not need the tax benefits of a trust.
These deeds are governed by State laws.
REVOCATION
The beneficiary cannot have any interest in the property until the real owner dies. There is an advantage over adding the heir to the deed while alive, it can be revoked or changed without any consent of heir.
In case, there are more than one owner, creating a transfer on death deed, then the owner still surviving (last one) can revoke the deed or change the beneficiaries against the wishes of deceased owner(s).
RECORD OF REVOCATION
The simple way is to sign a document of revoking the TOD deed and record it in just a way of recording original deed.
SIGNATURES OF ALL CO-OWNERS
Generally, all the co-owners must sign the revocation. The revocation will not be effective unless it is signed by the last surviving owner, in the case where the person owns the property with someone else and person that person has the sign of ownership.
TRANSFER THE PROPERTY TO THE THIRD PERSON
The owner is free to give away or sell the property that you have left in a TOD deed.
TOD will not be effective if the owner is now no longer own the property at the time of death.
RECORD A NEW TOD DEED
You can simply sign and record a new TOD deed, leaving the property to someone else. Only the most recent one TOD deed will be valid as per State law, in case there are more than one TOD deeds.
CASE:
MURIKIPUDI ANKAMMA V/S. TAMMALACHERUVU NARASAYYA 1947
HELD: Learned single Judge of Madras High Court held that in case of absence of any express reservation of power of revocation in a gift deed, then a donor cannot continue with the right to revoke the gift.
Under Section 126 of Transfer of Property Act, a gift can be revoked if a man will improvidently bind himself with a voluntary deed and not reserve a liberty to himself by a power of revocation, then the Court will not lose the fetters he has put down upon himself.
CAUTIONS
- Do not use the will to try to revoke the transfer on death deed. It does not work.
- Prior to the death of Granter, the revocation must be recorded in order to make it effective.