Malcolm Rivera
In Oregon, a transfer-on-death deed TOD allows property owners to transfer ownership of their real property to one or more designated beneficiaries upon their death. The deed is a legal document that is recorded with the county where the property is located and becomes effective upon the owner's death. While the owner is alive, the TOD does not affect any interest or right of the owner and does not create any legal or equitable interest or right for a beneficiary. The designated beneficiary's interest in the property is transferred in accordance with the deed if they survive the owner by 120 hours or 5 days as per Oregon's survivorship rule. However, if the beneficiary does not survive the owner, their share of the property lapses and is transferred to the surviving beneficiaries.
| Characteristics | Values |
|---|---|
| What is a transfer-on-death deed? | A legal document that allows property owners to transfer ownership of their real property to one or more designated beneficiaries upon their death. |
| Who can be a beneficiary? | Anyone, including a person, multiple people, or an organization such as a charity. |
| How does it work? | The property owner must execute and record a TOD deed that names the beneficiaries, describes the property, and specifies the ownership interest being transferred. |
| Can the deed be revoked or modified? | Yes, the property owner can revoke or modify the TOD deed at any time as long as they are competent and capable of doing so. |
| What is the 120-hour rule? | The beneficiary must survive the property owner by 120 hours (5 days) to receive the property. This rule prevents the property from going to the beneficiary's beneficiaries if the owner and beneficiary die at a similar time. |
| What is the effect of a transfer-on-death deed at the transferor's death? | The designated beneficiary's interest in the property is transferred to them in accordance with the deed if they survive the transferor; if they do not, their interest lapses. |
| What is the difference between a TOD deed and a deed with survivorship provisions? | In a TOD deed, the beneficiary does not acquire any interest in the owner's property until the owner dies. In a deed with survivorship provisions, the surviving co-owner(s) automatically receive the deceased co-owner's share of the property. |
| What is the Uniform Real Property Transfer on Death Act? | A law integrated into Oregon's laws in 2011 that allows property owners to direct and modify what happens to their land when they die. |
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What You'll Learn
Joint tenancy with right of survivorship
In Oregon, there are three common ways to co-own property: as tenants in common, as tenants by the entirety, or as joint tenants (also called "joint tenancy with right of survivorship").
If you co-own real estate as joint tenants with right of survivorship, when one co-owner dies, that co-owner's share of the property will automatically go to the surviving co-owner(s). This is different from tenants in common, where there is no right of survivorship, and as each co-owner dies, their interest goes into the decedent's own estate for distribution to their heirs or the persons designated in their will.
A transfer-on-death (TOD) deed will be subject to Oregon's 120-hour survival rule, which states that a beneficiary must survive the transferor by 120 hours (or 5 days) to receive the property. This rule aims to prevent the property from going to the beneficiary's beneficiaries (their heirs) instead of the transferor's beneficiaries if both the transferor and the beneficiary die close in time.
When creating a TOD deed, it is important to understand the difference between doing so on your own and doing so together with the other joint tenant(s). When you make a TOD deed on your own, you are naming someone to receive the property after all of the joint tenants have died. On the other hand, when you make a TOD deed together with the other joint tenant(s), you are naming a beneficiary to receive the property after the last surviving joint tenant dies.
It is also important to note that, in Oregon, a conveyance to a married couple automatically creates a tenancy by the entirety, which carries the right of survivorship, unless the deed clearly and expressly declares otherwise. Additionally, to convey title to co-owners with a right of survivorship, it must be expressly stated in the deed; otherwise, it will be presumed to be a tenancy in common.
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Transfer on Death (TOD) deed requirements
In Oregon, a beneficiary deed, also known as a Transfer on Death (TOD) deed, is a legal document that enables property owners to transfer their assets to their beneficiaries without the need for probate. This process is straightforward and inexpensive, requiring only a simple form to be filled out and notarized.
The TOD deed is distinct from a last will, and its specific rules and requirements vary across jurisdictions. In Oregon, the default is for beneficiaries to receive equal shares of the property with no right of survivorship. This means that each beneficiary can independently choose to sell or leave their share to someone else. For example, if you name Tim, Stephanie, and Rebekah as your TOD beneficiaries, and Tim leaves his one-third share of the property to his son Cameron in his will, and Stephanie sells her one-third share to Anya, then after Tim dies, Cameron, Anya, and Rebekah will be the new owners.
It is important to note that the designated beneficiary must survive the transferor by at least 120 hours (5 days) to receive the property. This rule aims to ensure that the property goes to the transferor's beneficiaries rather than the beneficiary's beneficiaries if they die close in time. For instance, if Sarah uses a TOD deed to leave her house to her brother Juan, and they both pass away in a car accident with Sarah dying on June 10 and Juan dying on June 12, the 120-hour rule would apply, and the deed would be canceled, with the house going to Sarah's residuary estate.
Additionally, the TOD deed in Oregon does not provide a covenant or warranty of title, even if the deed contains a contrary provision. This means that the beneficiary receives the property "as is", and the transferor does not guarantee the condition or title of the property.
To create a TOD deed, it is essential to comply with state law and consult legal professionals or use state-approved forms. The document must include specific information, such as the names of the grantor (current owner) and grantee (beneficiary), a legal description of the property, the signature of the grantor, and the required witness and notary provisions. Some states may require additional witnesses, so it is crucial to follow the requirements of your jurisdiction.
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Revoking a TOD deed
In Oregon, a property owner who records a TOD deed can revoke or amend it at any time before their death, even if the deed states that it is irrevocable. Revoking a TOD deed effectively cancels the future transfer of the property to the beneficiary.
Methods of Revoking a TOD Deed
There are several ways to revoke a TOD deed in Oregon:
- Recording a revocation: The property owner can sign and record a revocation of the TOD deed.
- Recording another TOD deed: The owner can record another TOD deed, leaving the property to someone else.
- Recording a new deed: The owner can record a new deed that conveys a property interest that would have otherwise been transferred under the TOD deed.
- Divorce: If the beneficiary named in the TOD deed is the owner's former spouse, the TOD deed is automatically revoked by operation of law.
- Recording an instrument of revocation: The owner can record an "instrument of revocation" that expressly revokes the prior TOD deed.
- Inconsistency: Revocation is implied if the owner records a later TOD deed with provisions inconsistent with the terms of a previously recorded TOD deed.
It is important to note that a will cannot be used to revoke or override a TOD deed. Additionally, if the TOD deed is co-owned, both owners must revoke the deed for it to be entirely revoked. Revoking the deed by oneself will only affect one's own interest in the property.
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Beneficiary rights
In Oregon, a beneficiary deed, also known as a transfer-on-death deed (TOD), allows property owners to transfer ownership of their real property to one or more designated beneficiaries upon their death. The beneficiary must survive the transferor by 120 hours or 5 days for the transfer to be valid.
The beneficiary has no rights or interests in the property until the owner dies. The TOD deed does not affect any interest or right of the owner, and it does not create any legal or equitable interest or right for a beneficiary during the owner's lifetime. The beneficiary inherits the property subject to all encumbrances, liens, and restrictions. The beneficiary is also liable for any creditor claims from the transferor's estate for the first 18 months following the owner's death.
The beneficiary can disclaim all or part of their interest in the property as provided by law. If there are multiple beneficiaries, they will receive concurrent interests in equal and undivided shares with no right of survivorship. Each beneficiary can leave their share to someone else or sell that share of the property.
To create a TOD deed in Oregon, the property owner must execute and record a TOD deed that names the beneficiaries, describes the property, and specifies the ownership interest being transferred. The owner can revoke or modify the TOD deed at any time as long as they are competent. It is recommended to consult an attorney to ensure the deed is properly executed and recorded and to discuss other estate planning options.
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Probate avoidance
In Oregon, a transfer-on-death deed (TOD) is a legal document that allows property owners to transfer ownership of their real property to one or more designated beneficiaries upon their death. This process is also known as a beneficiary deed. The TOD deed must be executed and recorded with the county where the property is located, and it becomes effective upon the owner's death.
The TOD deed is a useful tool for probate avoidance and estate planning as it allows property owners to transfer ownership of their property outside of the probate process. This means that the property will not be subject to the time and expense of probate proceedings. The TOD deed can also help to avoid gift taxes and prevent the creation of interests in beneficiaries while the owner is still alive.
To create a valid TOD deed in Oregon, the property owner must name one or more beneficiaries who will inherit the property upon the owner's death. The deed must also describe the property and specify the ownership interest being transferred. It is important to note that the designated beneficiary does not acquire any interest in the owner's property until the owner dies. While the owner is alive, the TOD deed does not affect any interest or right of the owner, and it does not create any legal or equitable interest or right for a beneficiary.
In the case of multiple beneficiaries, the property is transferred in equal and undivided shares with no right of survivorship. This means that each beneficiary is free to leave their share to someone else or sell that share of the property. For example, if you name three beneficiaries, each will own an equal one-third share of the property and can dispose of it as they wish. If one of the beneficiaries dies before the owner, their share will be transferred to the surviving beneficiaries.
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Frequently asked questions
A transfer-on-death deed (TOD) is a legal document that allows property owners to transfer ownership of their real property to one or more designated beneficiaries upon their death.
No, a TOD does not constitute survivorship in Oregon. By default, beneficiaries will own the property as tenants in common, and each beneficiary will be free to leave their share to someone else or sell that share.
The 120-hour rule in Oregon states that your beneficiary must survive you by 120 hours or 5 days to receive the property. This rule prevents your property from going to your beneficiary's beneficiaries if you and your beneficiary die at a similar time.
In a deed with survivorship provisions, the beneficiary acquires interest in the owner's property before the owner dies. In a TOD deed, the beneficiary does not acquire any interest in the owner's property until the owner dies.
To create a TOD deed in Oregon, the property owner must execute and record a TOD deed that names one or more beneficiaries, describes the property, and specifies the ownership interest being transferred. It is recommended that you consult an attorney to ensure the deed is properly executed and recorded.
