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A beneficiary who receives real estate through a transfer on death deed becomes personally liable for the debts of the dead property owner without proper counsel from an estate planning professional or a title company. The beneficiary becomes liable to potential financial obligations as a result.
At your death, the real estate goes automatically to the person you named to inherit it (your "beneficiary"), without the need for probate court proceedings.
A California TOD deed must be signed by the owner and two witnesses, dated, and notarized (acknowledged by a notary public). The witnesses?who should not also be beneficiaries?must be present at the same time and see the owner sign or acknowledge the TOD deed.
You must sign the deed and get your signature notarized, and then record (file) the deed with the county clerk's office before your death. Otherwise, it won't be valid. The beneficiary's rights. The person you name in the TOD deed to inherit the property has no legal right to it until your death.
Because a TOD deed, also known as a beneficiary deed, bypasses probate, it can simplify the inheritance process and reduce costs for your loved ones. Consider working with a financial advisor as you plan how your estate will be distributed upon your death.