A Transfer on Death (TOD) provision in Kansas lets a property owner name a person who will get their property when they die. This method skips the probate process.
The owner can use this for different assets like houses and cars. The property stays under the owner’s control while they are alive. The transfer happens after their death and does not need probate court involvement.
To make a TOD deed legal, it must be signed, notarized, and recorded at the county register of deeds before the owner dies.
Transfer on death passes assets to a beneficiary — without probate
A Transfer on Death (TOD) provision lets an asset owner name someone to inherit their assets after they die. This avoids the complex and lengthy probate process.
Assets can include financial accounts like bank accounts or stock portfolios. They can also include physical assets like cars or real estate.
The beneficiary has no legal rights to the asset while the owner is alive. The asset only transfers upon the owner's death.
This transfer method is usually quicker and less costly than traditional probate. It does not involve court proceedings.
Transfer on death is different to joint ownership, but there are similarities
TOD provisions and joint ownership are ways to pass on assets, but they work differently.
In joint ownership, two or more people own an asset together, like a home or bank account. In Kansas, when one owner dies, the asset automatically goes to the surviving owner(s) without going through probate.
A TOD provision lets an asset owner name a beneficiary to get the asset after their death, also bypassing probate. Unlike joint ownership, the beneficiary has no ownership rights until after the owner's death.
Transfer on death (generally) protects the asset from creditors
TOD provisions in Kansas can help shield assets from creditors.
When an owner dies with debts, creditors have a specific time to claim against the estate.
Assets transferred through TOD provisions skip probate and are usually out of reach for creditors. They can only access these assets if they prove the transfer was fraudulent.
TOD takes precedence over a will
Conflicts can occur if a will and a TOD provision disagree.
In Kansas, a TOD provision usually overrides a will.
If a will says an asset should go to one person but the TOD provision names someone else, the asset will transfer to the person named in the TOD provision.
Tax-wise, assets transferred via TOD are treated the same
In Kansas, assets transferred via TOD are treated the same as those transferred by other means for tax purposes. There is no state estate tax, so only federal estate taxes apply.
Assets passed on through TOD provisions are generally shielded from the deceased's debts, unless involved in a proven fraudulent transfer.
Kansas transfer on death deeds are used to transfer real estate
In Kansas, real estate can be transferred using a TOD deed, also known as a beneficiary deed.
This deed lets a property owner choose a beneficiary who will inherit the property automatically when the owner dies, avoiding probate.
For homeowners, a TOD deed offers a smooth transition of property ownership without the delays and costs of probate.
Lady bird deeds aren't valid in Kansas
A Lady Bird deed, or enhanced life estate deed, is a legal tool allowing property owners to pass on their property while keeping rights to it during their lifetime. Owners can sell, lease, or mortgage the property without needing permission from beneficiaries.
But Kansas doesn't recognize Lady Bird deeds. Instead, you can use a revocable living trust or a TOD deed.
In Kansas, setting up TOD is different depending on the type of asset
In Kansas, setting up a TOD provision involves specific steps depending on the type of asset.
For financial assets, you typically fill out a form from the financial institution holding your assets.
For real estate, a transfer on death deed needs to be completed and recorded at the county recorder's office. There might be a fee to do this.
TOD provisions have benefits — but also some restrictions
TOD provisions have some drawbacks.
For one, they're not suitable for complex asset distributions or detailed instructions, unlike wills or trusts.
And, if the named beneficiary dies before the owner, the asset usually goes through probate unless you name a second beneficiary.
Revoking a TOD provision
TOD provisions can be changed or cancelled anytime during the owner's life, if the owner is mentally fit.
In Kansas, changing a TOD usually means filling out a form from the financial institution. For real estate, a revocation form must be recorded with the county recorder's office. There might be a fee for this.
The laws about TOD provisions in Kansas are complex and important for estate planning. It’s wise to talk to an experienced estate planning attorney to make sure your assets are distributed as you wish.
