A “transfer on death deed” is a deed that moves the property to someone else’s ownership when the previous owner dies. In Nevada, we call these a “deed upon death.”
Using a deed upon death means that, when you die, your chosen recipient gets the property automatically. It does not need to go through a will or pass to your other heirs – it goes directly to the recipient. These will have to be recorded with the local authorities before a deed upon death is valid. If someone else jointly owns the property, they usually take possession instead of the deed upon death recipient. You can also sell or revoke the deed upon death status at any point.
For help with your estate planning and potential deed upon death setup, call the Las Vegas estate planning lawyers at Flake & Flake today at (702) 829-5731.
What is a Deed Upon Death?
A deed is a document that lists ownership and title to a piece of property. You can set up a deed to transfer upon the owner’s death to someone else.
Some states call this a “transfer on death” (TOD) deed, but Nevada law uses the term “deed upon death” (DUD).
Why Would You Choose a Deed Upon Death?
Using a deed upon death comes with a few benefits:
Skip Probate
When someone passes away and leaves things to their heirs through a will, the will has to go through “probate.” This is a court process where…
- The court reads the will to appoint the decedent’s “personal representative.”
- The personal representative assembles the estate.
- They pay any outstanding debts.
- They give the estate to the heirs listed in the wills.
This is a complex process, and there are plenty of reasons you might want to skip it. Most of the other benefits listed below are benefits specifically because probate gets skipped for a DUD.
Transfer is Automatic
When the property owner dies, the deed upon death transfer is automatic upon death. This means the recipient can take proof of death to the county and have them record the new owner without much delay or fanfare.
Transfer is Fast
Probate can potentially take over a year, but the automatic DUD transfer can be recorded within a few days or weeks at the latest.
Protect Assets from Some Creditors
Assets that pass through probate can often be seized by creditors to pay outstanding debts. Skipping probate might help protect the house from being seized to pay unsecured debts that have no property attached to them, like credit card debt.
However, this does not usually protect it from being seized or repossessed for debts secured against the property. For example, the mortgage lien sticks to the property itself and puts mortgage creditors first in line for seizing or repossessing the property. This is the case even if the property changes hands through a DUD; the mortgage payments cannot fall behind or the new owner risks repossession.
Protect from Challenge
Wills can be challenged in probate, but deeds upon death do not go through probate. This cuts down on the ways the transfer can be challenged.
Does a Deed Upon Death Stop You from Selling the Property?
No. You can only transfer a deed or title that you actually have when you die. If you sell it before then, the new buyer takes over, and the DUD designation goes away.
Can You Revoke a DUD Designation?
Yes. You can simply go to the registrar’s office and change the designation or recipient whenever you want, as long as everyone on the deed (i.e., joint owners) consents.
What Are the Alternative Options?
Using a deed upon death is a powerful choice, but it isn’t your only option. These alternatives might work better for some situations:
Joint Ownership
If you own your property with a spouse, business partner, or other person, then it will usually pass to them upon your death. The specific type of ownership may change this, such as if you only own a share of the property or if you and your spouse own the whole thing together.
The DUD only activates if all owners on the deed have passed away.
Wills
You can bequeath a property in a will. This allows you to potentially divide shares of the property or have it sold off to divide the proceeds among your heirs.
This is usually slower, because the house has to go through probate like everything else. However, it can be more flexible, especially if you move a lot. For example, if your will simply transfers “your house,” then it doesn’t need to be updated when you move and “your house” becomes a different house – as long as you only have one “house.”
Definitely talk to our Nevada estate planning lawyers about what language to use and whether a will needs to be updated when you move.
Trust
You can transfer your house into a trust while you are still alive, then name a backup beneficiary to take over the trust when you pass. This will allow the trust to continue owning the property, and the trustee you appoint can manage the property for the beneficiary.
This might be a good decision if you want to give the house to an aging or disabled spouse but keep maintenance and upkeep decisions in your adult child’s hands.
How to Create a Deed Upon Death in Nevada
There is one important step you must take to make a DUD valid, but the other steps are necessary to make the proper plans:
Talk to a Lawyer
You should never try creating a DUD on your own. Talk to our lawyers about your options to choose what is best for your property and estate plans.
Check Title
You cannot transfer a deed for a title you do not actually have. If there are problems with your deed or its recording, then you might not be able to pass on the house like you want to.
Fixing these issues before you pass creates fewer problems for your heirs.
Record the Deed (Required)
You must record the deed with the county before a deed upon death is valid.
Inform the Recipient
You should tell the DUD recipient that they will get the house when you pass. They can also tell your personal representative named in your will, so they know they do not have to go looking for title to a house that has already been transferred to someone else.
Call Our Estate Planning Lawyers in Nevada
Call Flake & Flake’s Henderson, NV estate planning lawyers at (702) 829-5731 for help setting up a deed upon death.
