Want a tip that isn’t widely known outside of the affluent, in-the-know circles?
Most of us either have, or are familiar with, a Payable on Death (POD) bank account. You designate a beneficiary on the account and the account transfers to that beneficiary upon your death. However, most of us don’t know that in Nevada you can also have a beneficiary deed (transfer-on-death deed) set up to transfer your house upon your death, to whomever you choose, without it going through probate.
This method of transferring real estate is currently only available in a handful of states. Some of the benefits of using this method to transfer the property include:
The beneficiary deed is also a better choice than joint tenancy with right of survivorship (JTWROS) if the beneficiary isn’t your spouse and didn’t purchase the property with you. JTWROS can create a problem for you if for any reason you change you mind or if your co-owner is sued. Once you title the property JTWROS, you can’t change it without the other party’s cooperation. The other party can lose the house for you if they are on the losing end of a civil suit. The lawsuit could result from a divorce or from an accident. There are also gift tax consequences if you have enough equity in the property when you choose JTWROS as a means of transferring the property.
Discuss this situation with your attorney. As a safety precaution, they may have you confirm in your will the choice of using the beneficiary deed and the beneficiary.
This won’t work for every situation. You shouldn’t use this technique if you have a large estate or a complicated situation without consulting a financial planner, tax advisor, or an attorney with estate planning experience.
