TODI – Illinois property transfer on death
Hi Terry,
My husband and I have one child and I asked our financial advisor about putting our house in trust in our daughter’s name and was told instead to do a TODI (Illinois Real Property Transfer On Death Instrument). My husband and I are in our late sixties.
Your thoughts?
Thank you (love watching you on WGN News and listening to you on WGN radio)
Terry Says
Well, I don’t know your complete situation, but I’d highly recommend a third solution: A Revocable Living Trust.
Watch this video: https://www.terrysavage.com/wp-content/uploads/2022/10/Terry-Talks-Wills-Trusts-Estate-Planning.mp4
That will allow her to have the property when you die, assuming you change the title of the house into your new Revocable Living Trust. You’ll need an estate planning attorney to do this — not your financial advisor.
In the meantime, you can sell the house in coming years, buy another property, or even take out a reverse mortgage if needed.
And a RLT will let you organize your entire estate (watch the video) making provisions for distributions after your death as well as the ability of the successor trustee you name to manage your finances if one or both of you is incapacitated but alive!
