California State Assembly Passes Bill to Permit Transfer-on-Death Deeds for Real Estate
May 13, 2015
Fairfax, VA (Law Firm Newswire) May 13, 2015 – Enactment of the measure would allow residents to avoid probate on their property.
On April 9, California took a major step toward allowing transfer-on-death deeds for real estate. The state Assembly passed a bill to permit such deeds by a unanimous 73-0 vote. If approved by the state Senate and signed into law by Gov. Jerry Brown, the Golden State would become the 21st and largest state to legalize this estate-planning method for avoiding probate.
The measure, sponsored by Assemblyman Mike Gatto, D-Glendale, would make so-called revocable transfer-on-death deeds available. These deeds would allow homeowners to pass their property, most often a house, to a chosen beneficiary upon death, bypassing the often costly, time-consuming process of probate. The deeds would work like the payable-upon-death forms already used to pass on assets like bank accounts, stock accounts or automobiles without going through probate.
The legislation, Assembly Bill 139, was introduced after the California Law Revision Commission recommended that the state adopt the more streamlined method. Californians can already transfer property to another individual while the transferring party is still alive.
“California is usually thought of as a trend-setting state, especially in new legislation — other states often follow California’s lead,” said Lisa McDevitt, a prominent attorney in Fairfax, Virginia, whose firm specializes in estate-planning law. “But in this case, 20 other states, including Virginia, beat them to it.”
Transfer-on-death deeds, also known as beneficiary deeds, are usually fairly easy to create, and the transferring party can change his or her mind at any point. There are alternative means of avoiding probate on real estate to similar effect, most notably through a living trust or a joint tenancy.
“It is always preferable for an individual to attend to estate planning as early as possible. If at all feasible, he or she should employ an estate plan that will not involve probate,” McDevitt said. “Transfer-on-death deeds, where they are legal, are a useful means of bypassing probate, and an attorney experienced in estate-planning law will be able to help create these and other documents.”
Learn more at http://www.mcdevittlaw.net
Lisa Lane McDevitt
2155 Bonaventure Drive
Vienna, VA 22181
Phone: 571-271-1446
http://www.mcdevittlaw.net/
- On Healthcare Decisions Day, consider creating an advance directive
April 16 marks the seventh annual Healthcare Decisions Day in the Commonwealth of Virginia. On that day, related events will raise public awareness of the need to plan ahead for healthcare decisions concerning end-of-life care and for medical issues in circumstances when patients are not able to speak for themselves. Accordingly, the occasion also encourages […] - Prenuptial agreements can help couples protect separate assets
Asset preservation has become an increasingly important factor in marriage as well as estate planning, particularly as divorce and blended families become more common realities in the United States. The rising popularity of prenuptial agreements is a notable reflection of the changing matrimonial landscape in this country. In an October 2013 survey of 1,600 members […] - When filing for a divorce, finding fault is not always necessary
If there was ever an appropriate circumstance, divorce proceedings would seem a prime candidate for an exercise in finger-pointing. However, legally speaking, there are situations in which spouses parting ways should seek what is known as a no-fault divorce. Traditionally, some sort of misconduct has formed the grounds for a divorce. But modern divorce laws […] - As circumstances change, ‘Last Will and Testament’ may not be final word on an estate
“Last Will and Testament” is a popular title for the document in which a person, known as a testator, names one or more people to manage his or her estate and provides for the distribution of his or her property after death. But when a person’s life circumstances change, a “Last Will and Testament” may […] - When a couple divorces, debts as well as property must be equitably divided
Marriage can be likened to a business contract, and when that contract is dissolved during a divorce the division of assets is an important and often contentious matter. But debts are an equally important matter to resolve when any contract, including marriage, terminates, as any debts a couple holds will also be allocated between the […] - IRS offers holiday season tidings on tax exclusions estate planners should remember
The holiday season upon us, meaning that the remainder of the year will see a significant amount of purchasing and bestowing gifts. The spirit of giving is not lost upon the federal government, particularly regarding those gifts with significant valuations, or those bequeathed by an estate. Accordingly, the Internal Revenue Service has announced its gift […]
