Mini-Exposé on the New Revocable Transfer on Death Deed By Jennifer Sawday As of this year, California enacted a new revocable transfer on death deed, which was effective on January 1, 2016. This law allows by a deed to transfer title to residential real property upon the homeowner’s death to another person as desired without probate or trust administration.  For those who Google, this section has been codified in California Probate Code Section 5600, et seq. It is similar to payable on death accounts offered by banks and other financial companies and creates, at first glance, a relatively inexpensive way for Californians to transfer their real property after death without administration to the intended beneficiary.  The deed must be prepared, notarized and recorded within 60 days of its execution to be valid. The person who is intended to receive the property must also survive the homeowner! Approximately half of the states already have laws on their books providing some kind of revocable transfer death deed.  This legislation was intended to follow that trend. These deeds may be used for residential properties that have up to four units, or a single tract of agricultural land that is 40 acres or less that is improved with a single family residence.  The statute is set to expire/sunset on January 1, 2021, unless the Legislature acts otherwise. Any properly prepared and recorded deed under this law will remain valid despite the sunset clause. Even with the presumed benefits of avoiding death administration of real property with these deeds – it does not eliminate the need for proper estate planning.

• First, a recipient under this type of deed will be liable for the debts (Medi-Cal payback, credit cards and any other secured and unsecured debts) of the now deceased homeowner. This may cause unintended consequences that could be avoided with proper planning.
• Second, the deed does not provide any means for someone to handle personal, financial or other affairs of the property owner who is alive but not well.
• Third, it does not meet the requirement to handle the disposition of remains.

Some of us might just think, “Great!! you can get the house” However there are serious unknowns on who is going to handle the mail, burying the body and handling all of the other things that come with a life coming to an end! If you want more information or wish to discuss this new law further, send me an email. I am always happy to have a conversation: [email protected]. Jennifer Sawday is a partner at TLD Law. She is passionate about legal issues around estate planning, probate, revocable trust and trust administration post death. Some of us know about writing a will, perhaps something you have saved on your computer, written on a piece of paper but there are many laws that will see your life savings wither once you pass away. It is important you find out how to protect yourself, how to correctly and legally protect your wealth and assets so that your children or spouse can benefit fully upon your passing. Most people know the word living trust, revocable living trust and some know the word estate plan. To get your case evaluated, Jennifer Sawday provides a free initial consult. New laws often trump old ones and it really is an important process for you to understand how it impacts you and your family. Jennifer Sawday is a very personable and caring attorney, find out how the new revocable trust law impacts you sooner rather than later.