The California Revocable Transfer on Death Deed

The California Revocable Transfer on Death Deed – Why and Why Not to Choose the Controversial California TOD Deed

​By Attorney Paul Hanks, Ironclad Living Trusts

The big reason why people choose the California Revocable Transfer on Death Deed, commonly called the TOD deed, is simplicity. The California Transfer on Death Deed is a basic one page form which does not pinch your wallet. It seems almost too good to be true that for a few bucks you can fill out a form and be done with your estate planning.

In a prior blog I addressed the perils of the California Revocable Transfer on Death (TOD) Form – The One Upside & Many Drawbacks.

The California TOD deed leads to many inquiries. What are the shortcomings of the California Transfer on Death Deed? Can the TOD deed lead to more harm than good? What advantages does a Revocable Living Trust have over the California TOD deed?

And the biggest question is, what is lost by reason of choosing the California Revocable Transfer on Death Deed over a California living trust? The California Revocable Transfer on Death Deed is no more than a fill-in-the-blank form with none of the protections of the Revocable Living Trust.

Would you like to protect your estate against Medicare/ Medi-Cal estate recovery ? The California Transfer on Death deed fails to do so.

Would you like to expose your estate to liability for your own unsecured debts? If so, then use the California TOD form.

Would you like to protect your estate against creditors of the estate beneficiaries? The California Transfer on Death deed does not provide that protection.

Would you like to imperil your ability to obtain an equity line of credit on your home? If so then your choice would be the California TOD form.

Do you want to lose the power of management of the elderly’s assets while they are still living and lose all safeguards against elder financial abuse? If that be your goal then the  California TOD deed is an acceptable choice.

If you wish to compromise your estate and expose it to opportunistic in-laws, then the California Transfer on Death deed would further that goal.

Would you like to have your beneficiaries inheritance preserved over time and maximized in value? The benefit of protecting and preserving an inheritance is completely lost with the California Transfer on Death deed.

Would you like to lose the benefit of protecting your home from loan fraud by reason of the power of a trust transfer deed? Then once again the California TOD deed is for you.

As you can now see from this Blog, the consequences of the California Revocable Transfer on Death Deed can be very costly. You have worked hard for your wealth and should not risk it by filling out a basic form as a replacement for sound estate planning. Your most prudent pathway is to consult with a living trust and estates law firm to properly assess all your estate planning options.

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