The Oklahoma Legislature recently passed a bill which will allow the transfer of real estate by a Transfer on Death Deed.  While there are still legal questions to be worked out about the tax effects, etc., this should greatly simplify the estates of many Oklahomans, rich and poor alike.

 

Under this new law, the property owner must simply fill out the statutory form designating who is to recieve the property upon their death, sign it before a notary and record it with the county clerk.  Upon their death, ownership in the property is transferred to the designated beneficiary upon filing of a statutory affidavit of death with the county clerk.

 

The property owner may revoke the deed at any time or change the beneficiary.  The deed cannot be revoked or modified by the terms of a will. If the property owners fills out a second TOD deed, it replaces and  revokes the first.

 

Unlike joint tenancy and trusts, the property owner retains legal and equitable title until their death.  They are the absolute and only owner of the property until their death.  The beneficiary then takes the property subject to any liens, mortgages and other encumberances existing at the time of death.

 

The largest asset that transfers in most small estates is the residence and/or  farm.  This new statute should greatly simplify that transfer for many Oklahomans.

 

 

Like any other legal expense, probate should be avoided if possible and there are simple ways to do it.  Here are some suggestions:

 

1.  Use joint tenancy with your spouse on real property, joint title on titled personal property and joint banking accounts.

 

2.  If you are single, use payable upon death accounts.  You remain  in control of the account until you die at which time the named beneficiary recieves the account.   But remember, if you expect that you might become disabled, a joint account with a trusted family member would allow them to write checks for you during your disability.

 

3. Use designated beneficiaries for your life insurance and retirement accounts.  Do not name "your estate" as the beneficiary unless you want these assets to go through probate instead of going directly to the named beneificiary.

 

4.  Use the new Transfer on Death Deed for your real property.

 

For many estates, the proper combination of the above listed strategies combined with a fairly inexpensive simple will, will result in an orderly transfer of the estate at minimal cost.

 

 

In cooperation with the Management and Technology Section of the Oklahoma Bar Association, Attorney Bill Kumpe taught a one hour CLE session titled "Just You and Your Laptop, Reinventing Yourself As A Virtual Solo Attorney."  The session was presented twice, at the Renaissance Hotel in Tulsa on April 18th, and again at the Bar Center of the Oklahoma Bar Association in OKC on April 25th.  The presentation was webcast and offered for credit by the Wyoming Bar Association as well.

 

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April 24, 2008, Attorney Bill Kumpe testified before the Bench & Bar Committee of the Oklahoma Bar Association concerning objections to proposed changes in the Oklahoma Code of Judcial Conduct.

 

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