What is the purpose of a transfer on death deed?

The purpose of a transfer on death deed is to transfer ownership of property to beneficiaries upon the owner's death. This legal instrument allows an individual to designate one or more beneficiaries who will automatically receive the property without the need for probate proceedings when the owner passes away. This deed provides a simple and effective way to pass assets directly to beneficiaries, ensuring that the transfer occurs seamlessly after the owner's death and avoiding the complexities often associated with estate administration.

It is important to note that the transfer does not take effect until the owner dies, allowing the owner to retain full control over the property during their lifetime. This distinguishes it from options that might imply immediate transfer or obligations upon death, such as establishing a lease agreement or creating a trust fund, which involve different legal processes and considerations. The efficiency and clarity of transferring property directly to beneficiaries posthumously is a key feature of the transfer on death deed.