MSU Extension discusses transfer on death deeds in new MontGuide

Sara Adlington reports on a new MontGuide which describes how Montanans can leave property to loved ones without going through probate.

According to a newly published MontGuide by MSU Extension, individuals can leave their Montana real property to a designated beneficiary with a transfer on death deed, or TODD, however the deed is only effective upon their death. A TODD allows Montanans to leave real property to loved ones without going through a probate process. Since Oct. 1, 2019, Montana residents have been able to file a TODD on real property, according to Marsha Goetting, Extension family economics specialist. Prior to that date, a beneficiary deed was used for this purpose. Beneficiary deeds filed prior to this date are still effective upon death.

“Designated beneficiaries may be your spouse, children, relatives, friends, or nonprofit or charitable organizations. A designated beneficiary has absolutely no ownership rights in your Montana real property until you die. Your beneficiaries cannot use your home as collateral for a loan,” said Goetting.

Montanans can record a TODD with the clerk and recorder in the county where a person’s property is located. All TODDs must include the mailing address of the designated beneficiary.

Wendy Wedum, MSU Extension Pondera County agent, added that the deed must have a complete legal description of the Montana property that will transfer after death, not the description appearing on the property tax bill sent by the county treasurer. If an owner does not have a deed with this description, contact the clerk and recorder’s office where the property is located.

After a TODD has been signed and recorded, it cannot be revoked by a provision in a person’s will, Goetting and Wedum said. For example, if a parent records a TODD naming a daughter as the designated beneficiary of real property in Gallatin County and later writes a will that leaves that same property to their son, the real property passes to the daughter under the terms of the TODD. Goetting said if the parent wanted the property to pass to the son, the parent would need to revoke the TODD or record a new one.

“A TODD is a contract — like payable on death beneficiary designations on financial accounts and transfer on death registrations on stocks, bonds and mutual funds,” Goetting added.

Whether a TODD, will or trust is best depends on an individual’s circumstances.

“Some families may find all three estate planning tools would best meet their estate planning goals,” Wedum said. “Discuss your goals with an attorney to assure you are using the appropriate legal tools for your circumstances. No two families are alike.”

More information on TODDs can be found in the new MontGuide from MSU Extension at https://store.msuextension.org/ publications/FamilyFinancialManagement/ MT202010HR.pdf.

MORE NEW MONTGUIDES FROM MSU EXTENSION

MSU Extension specialists and agents publish information gathered during research and outreach work that is summarized in factsheets for all Montanans, including agriculture producers, home gardeners, families, landowners and other groups. In the winter of 2020, six new MontGuides were published that illustrate the variety of topics MSU Extension works on to provide valuable, unbiased information to help improve lives. Find these and many more resources online at msuextension.org/ store, where they can be downloaded for free or printed copies can be ordered.

Growing Cold-Hardy Berries and Small Fruits in Montana https://store.msuextension.org/Products/ Growing-Cold-Hardy-Berries-and-SmallFruits-in-Montana-MT202101AG__ MT202101AG.aspx

This 8-page MontGuide highlights currants, gooseberries, dwarf sour cherries,

aronia, and haskaps (or honeyberries), which are hardy fruits that can be grown almost anywhere in Montana.

Animal Unit Month (AUM) Lease Rates https://store.msuextension.org/Products/AnimalUnit-Month-(AUM)-Lease-Rates-MT202103AG__ MT202103AG.aspx

This 2-page MontGuide is for livestock producers and landowners alike, who are frequently interested in simple ways to determine rental rates for grazing lands, including rangelands, forest lands, and dryland and irrigated seeded pastures. This document provides an overview and examples of how to compute AUM rental rates for Montana grazing lands.

Stigma Free Addictions Terminology for Montanans https://store.msuextension.org/Products/StigmaFree-Addictions-Terminology-for-MontanansMT202013HR__MT202013HR.aspx

This 4-page MontGuide addresses terms used surrounding addiction, which is an umbrella term for both substance use (e.g., alcohol and other drugs) and behavioral addictions (e.g., gambling or sex addiction). It gives an overview of substance use in Montana and identifies language that can cause stigmas toward people with substance use issues.

Quitclaim Deeds in Montana https://store.msuextension.org/Products/QuitclaimDeeds-in-Montana-MT202102HR__MT202102HR. aspx

This 4-page Montguide explains Quitclaim Deeds, including what they are, when they are used, what the risks are, and what some of the unintended tax consequences might be.

Fire-Resistant Landscaping Considerations for Montana’s Wildland Urban Interface https://store.msuextension.org/Products/ Fire-Resistant-Landscaping-Considerations-forMontana%e2%80%99s-Wildland-Urban-Interface(WUI)-MT202104AG__MT202104AG.aspx

This 4-page MontGuide describes the Wildland Urban Interface and how many plants have developed fire-resilient adaptations, and how to create fire-resistant landscapes, which is an important component in reducing wildfire risk.

Montana State University Extension Store

Your one-stop shop for MontGuides, publications, merchandise, and more... store.msuextension.org

MSU Extension Communications & Technology P.O. Box 172040 Bozeman, MT 59717-2040

Presort Standard U.S. Postage PAID Permit No. 69 Bozeman, MT 59715

Enjoy Lives & Landscapes online and order your print subscription from msuextension.org or by calling (406) 994-3273. Email us at extensionmagazine@montana.edu. MSU Extension

@msuextension

@MSU_Extension

msuextension

MSU Extension