Thursday, October 20, 2011

New Real Estate Transfer Law

There is a new law which allows you to transfer residential real estate upon death without probate.  It’s called the Illinois Residential Real Property Transfer on Death Instrument Act (“Act”).  The instrument is called a Transfer on Death Instrument (“TODI”). The TODI is nontestamentary, meaning that you do not have to have the property go through probate.  Any owner of residential real estate may execute a TODI, which allows the property to pass to a designated beneficiary upon the death of the owner. Upon the owner’s death, the property will transfer to the designated beneficiary of the last recorded TODI -as long as the beneficiary comes forward and appropriately claims the property.  The designated beneficiary has no rights or interest in the property during the owner’s lifetime. In fact, the owner is free to sell, lease, mortgage or otherwise deed the property during his or her lifetime. Contact George Pecherek & Associates today to determine whether or not this new option could benefit you.