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Showing posts from January, 2012

New in 2012 - Illinois' Residential Real Estate Transfer on Death Instrument Act

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Now that the calendar has turned over to 2012, the new Illinois Residential Real Property Transfer on Death Instrument (TODI) Act, 755 ILCS 27/1 et. seq, (the "Act") has taken effect.  The Act gives Illinois residential property owners a new and useful estate planning tool.

What is a TODI?  A TODI is similar to, but distinctive from a deed; it is recorded with the county in which the property is located while the property owner is alive, but that takes effect only upon the death of the owner, as long as certain statutory conditions are met.

Why the Act Matters - In Illinois, real property personally owned by a decedent requires a probate action, regardless of the value of the estate.  The TODI gets the property out of probate.  Trust planning can accomplish the same goal but is not typically focused on a specific property.  The TODI is a simpler, more cost-effective mechanism, more tailor-made to accomplish the goal of transferring residential real property outside of probat…