Buyers /On August 26, 2013

Transfer on Death Deeds - What Does This Mean for Property Owners?

Back

by Brian D. Lytle, Esq., of Lytle Law, P.C.

Effective July 1, 2013, Virginia adopted the Uniform Real Property Transfer on Death Act, Va. Code § 64.2-621 et seq. This is actually a big deal and a significant change: now Virginia real property owners can execute and record a deed that specifies who gets their real estate when they die, and that transfer is made outside of probate. deed transfer

Ask Questions About Virginia Real Estate Deed Transfer

Previously, real estate transferred at someone’s death in one of four basic ways: First, there might have been a survivorship provision in the deed such that by operation of law the real property transferred to the surviving joint owner. Second, there could be a life estate (commonly referred to by laymen as “life rights”) where the life tenant “owns” the property during his natural life and then at death the property passes to the named remaindermen. Third, one could die intestate (no will) and the property would pass by intestate succession. Fourth the property could be transferred by will.

But under the new Virginia transfer on death act, one can execute a deed that simply designates who the new owner will be upon the current owner’s death. This transfer on death deed does not transfer any present interest in the property to the named death beneficiary, unlike the life estate or joint-owner-survivorship form of title and interest, and it transfers the property completely outside of probate or estate administration (like a pay on death or transfer on death bank account). Moreover, these transfers have no present tax consequences, they are exempt from recordation tax, and they are fully revocable during the lifetime of the owner.

So, these deeds provide a great new estate planning opportunity and tool. I’ll be happy to discuss your estate planning, in a free initial consultation, to see if one is right for you. Just email me at bdlytle@lytlelaw.com or call 595-5655 for an appointment.

Are you interested in hot real estate topics, tips and trends?
Click below to subscribe to our blog!

Lynnette Tully

Previous Post View All Next Post

Browse by topics

About the company

Liz Moore & Associates is a boutique real estate agency renowned for having the region's top agents, with extensive market knowledge and local expertise that is only achieved through relentless training coupled with Liz's extremely high standards for professionalism. When you're buying or selling a home, experience matters.