For many individuals, their house is their most valuable asset. However, when creating an estate plan, homeowners may overlook how their property will be transferred to their loved ones after their passing.
A Transfer on Death deed (TOD) is a legal document that will allow individuals to designate beneficiaries who will go on to receive their properties upon their death without going through probate for said property.
A TOD deed will help simplify the transfer process, reduce probate-related expenses, and provide loved ones with clarity during a difficult time. However, there are three common mistakes to avoid:
1. Forgetting to Update Beneficiaries
Major life events such as marriage, divorce, or even the death of a loved one will significantly change an individual’s estate planning goals.
Failing to review beneficiary designations after such events may result in your property being transferred in a way that no longer reflects your wishes.
2. Naming Multiple Beneficiaries Without Considering Future Complications
Although Wisconsin allows homeowners to designate multiple TOD beneficiaries, doing so may lead to future challenges. Disagreements regarding maintenance, expenses, or whether or not to sell the property may arise. Considering these possibilities in advance will help minimize potential disputes.
3. Assuming a TOD Deed Can Replace an Estate Plan
A TOD deed only addresses the transfer of a particular property rather than replacing important estate planning documents such as wills, trusts, or power of attorney. Developing an estate plan is crucial to ensure that additional assets are protected and properly addressed.
Protecting Your Property and Loved Ones
A TOD deed can be a valuable tool alongside an estate plan. Understanding a TOD deed’s limitations is essential in order to make correct decisions for your future.
November 9, 2026
