Question:
Am I correct that Maine now has a TRANSFER ON DEATH DEED ( TODD ) option? If so, how does that work? Is that something that would benefit me and my family? If so, HOW???
Answer:
In July, 2019, Maine enacted a new Probate Code. As part of this code, Maine elected to be the 16th state to adopt the TRANSFER ON DEATH DEED. This appears to be a less expensive way to avoid Probating someone’s estate rather than the traditional Revocable Living Trust ( RLT ).
Here is how it is supposed to work:
The Grantors ( perhaps the parents ) record a deed of Maine property ( perhaps the parents’ home or investment property ) to the Grantees ( perhaps their children ) in a customized format required by the statute. Although the deed is recorded immediately, no beneficial or legal interest is created in the Grantees ( children ) or Grantees’ creditors unless and until Grantors pass away. However, when the survivor of the Grantors passes away, THERE IS NO NEED TO PROBATE THE ESTATE OF THE DECEASED FOR THE GRANTEES TO HAVE TITLE TO THE REAL ESTATE!! It happens instantaneously at the moment of the death of the surviving Grantee.
The Grantors can elect to revoke the deed at any time during their competency by recording a clear and unequivocal statement of revocation at the registry of deeds.
I believe one purpose of this new enactment was to allow those Grantors ,who could not afford to have a lawyer prepare a Revocable Living Trust, to transfer property to their children ( or others ) and do so without the need for expensive and time consuming probate through the courts.