When Might it Make Sense to Use a Deed Upon Death?
Posted: Mon Dec 23, 2024 6:37 am
A deed upon death (DUD) is effective immediately at your death, avoiding the delay that comes along when a will goes through the probate process. Note, however, that a DUD works only for real estate. So, if one of your only assets or your main asset is real estate, then a DUD might make sense for you. If you own other forms of property (e.g., bank accounts, business interests, investments, etc.) with significant value, then passing property through a trust may be a better option for transferring property at death.
When is it Better to Use a Will or a Trust to Transfer Property?
A will or a trust can cover and distribute most of your telemarketing database assets, including real estate and other types of assets, to multiple parties, pursuant to specific instructions, and upon meeting certain conditions after your death. In other words, unlike a DUD, a will or a trust can cover more assets than just real estate, and provide greater flexibility and greater opportunities to plan.
A DUD may not be the better method when:
There is potentially more than one beneficiary, and the arrangement could result in conflicts between them.
You have creditors, because conveying the property to the beneficiary would be subject to those claims. If your estate lacks enough funds to pay its liabilities and obligations, it can enforce this debt against the property being transferred pursuant to a DUD. The beneficiary may get rights to the property but subject to liens of the estate.
You own the property jointly, which can complicate the process. If another person has a right of survivorship and survives you, they, not the beneficiary, would get your property interest.
When is it Better to Use a Will or a Trust to Transfer Property?
A will or a trust can cover and distribute most of your telemarketing database assets, including real estate and other types of assets, to multiple parties, pursuant to specific instructions, and upon meeting certain conditions after your death. In other words, unlike a DUD, a will or a trust can cover more assets than just real estate, and provide greater flexibility and greater opportunities to plan.
A DUD may not be the better method when:
There is potentially more than one beneficiary, and the arrangement could result in conflicts between them.
You have creditors, because conveying the property to the beneficiary would be subject to those claims. If your estate lacks enough funds to pay its liabilities and obligations, it can enforce this debt against the property being transferred pursuant to a DUD. The beneficiary may get rights to the property but subject to liens of the estate.
You own the property jointly, which can complicate the process. If another person has a right of survivorship and survives you, they, not the beneficiary, would get your property interest.