A Guide from Your Atlanta and Alpharetta Estate Planning Attorneys
Georgia’s estate planning landscape just got a big upgrade. On July 1, 2024, a new law introduced Transfer on Death (TOD) deeds (sometimes called Lady Bird deeds) in Georgia. This is great news for homeowners because it offers a simpler way to pass down real estate. If you’ve been worried about your loved ones dealing with probate court in Atlanta or Alpharetta when you pass away, a TOD deed might be the solution you’ve been waiting for.
As experienced estate planning attorneys, we at Hampton & Hampton LLP want to help you understand how this new tool can simplify your estate plan and streamline the transfer of real estate to your loved ones.
Georgia’s New Estate Planning Tool (As of July 1, 2024)
For years, Georgia homeowners had no simple way to transfer property to heirs without going through probate. Many families ended up facing lengthy court processes just to retitle a house after a loved one’s death. Avoiding probate often meant setting up a trust or adding a joint owner to the deed – solutions that can be costly or come with risks. Now, as of July 1, 2024, Georgia has adopted the Transfer on Death deed. This means Georgia homeowners can name a beneficiary to inherit their real estate directly, without the need for probate. In simple terms, it’s a deed you prepare and record in advance that names who should get your property when you pass away, keeping your home out of the probate process.
What Is a Transfer on Death (TOD) Deed?
A Transfer on Death deed is a special type of deed that lets you transfer your home or real estate to someone else at the time of your death, automatically. Think of it like naming a beneficiary for your house – similar to how you might name a beneficiary for a life insurance policy or a bank account. With a TOD deed, you (the property owner) designate a person (or multiple people) who will receive your property when you die.
Here’s how it works in simple terms:
- You stay in control: During your lifetime, nothing changes with how you own or manage your property. You can live in your home, refinance it, or even sell it if you want. The beneficiary you named has no rights to your property until after your death.
- No probate needed: Upon your passing, the property will automatically belong to the beneficiary named in the TOD deed. They won’t have to go through Georgia’s probate court to inherit the house – the transfer happens by operation of law. This means less hassle, less time, and potentially less expense for your loved ones.
- Flexible and revocable: What if you change your mind? A TOD deed is revocable, meaning you can change the beneficiary or cancel the deed at any point during your life. You’re not locked in – the power stays with you as the homeowner.
In short, a TOD deed allows a seamless transition of your property to your chosen heir. For example, a mother in Alpharetta could sign a TOD deed naming her daughter as the beneficiary. When the mother passes away, the daughter would become the owner of the house without having to hire an Atlanta probate attorney or go through months of court proceedings. It’s a way to make things easier for your family during a difficult time.
How a TOD Deed Compares to a Will or Trust in Georgia
Unlike a will, a TOD deed avoids probate and offers immediate transfer of property. Unlike a trust, it’s simpler and more affordable—ideal for Alpharetta and Atlanta homeowners looking to transfer a primary residence without full estate restructuring. But it may not replace the need for a comprehensive estate plan.
Key Benefits for Atlanta and Alpharetta Families
- Avoid Probate: With a TOD deed, your property passes directly to your chosen beneficiary without the delays and costs associated with probate. This is a significant advantage for those seeking to avoid the complexities of the probate process in Georgia-a concern frequently raised with our Atlanta probate attorney and Alpharetta probate lawyer teams.
- Simplicity and Flexibility: The property owner can revoke or amend the deed at any time, and the beneficiary has no rights until the owner’s passing.
- Cost-Effective Estate Planning: For many, a TOD deed is a straightforward alternative to trusts, offering a way to transfer real estate efficiently and privately.
How Does the New Law Work?
- Effective Date: The law took effect on July 1, 2024.
- Execution: The TOD deed must be properly signed, notarized, and recorded with the Clerk of Superior Court in the county where the property is located.
- After Death: The beneficiary must file an affidavit within nine months of the owner’s death to complete the transfer.
Why Work with a Local Estate Planning Attorney?
While a TOD deed can be a smart, efficient tool, it’s important to get it right. Mistakes in how it’s signed, notarized, or recorded could derail your intentions and send your property through probate anyway. Every family’s situation is different, and a solid estate plan may still include other strategies, like a will, trust, or asset protection.
At Hampton & Hampton LLP, we guide clients across the Atlanta metro area through the estate planning process with clarity and care. We also support families after a loss, providing responsive probate administration and helping them avoid common pitfalls.
Take the Next Step-Contact Hampton & Hampton LLP
If you’re considering a Transfer on Death deed or want to update your estate plan to take advantage of Georgia’s new law, reach out to the trusted Atlanta estate planning lawyers and Alpharetta estate planning attorneys at Hampton & Hampton LLP. Our experienced team will help you craft a strategy tailored to your family’s needs and ensure your wishes are protected.