Transfer on Death Deeds in Missouri

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Overview

Transfer on Death Deeds or "TOD Deeds" have been available in Missouri by statute since 1989. They are sometimes titled as "Beneficiary Deeds". A TOD Deed, even after recorded, is of no effect until the grantor is deceased. It can therefore be rescinded at any time. It should be noted that these are not the same as Ladybird Deeds in which the transfer is made but the grantor reserves rights to dispose of the property during their lifetime.

Sources

Compliance

Because a Transfer on Death Deed does not create any present insurable interest in real estate, it is likely that the drafting of such a deed by a title insurance agent would be considered in the unauthorized practice of law.

Forms

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Examination

Underwriting

Recording

  • Transfer on Death Deeds are recorded at the Recorder of Deeds office for the county where the subject property is located.

Pricing

  • Preparation
  • Recording
  • Taxes

Deceased Beneficiaries

Whether or not the beneficiary must survive the owner in order to take the property depends on the relationship of the beneficiary to the owner, and on the instrument itself. If the beneficiary is the owner's lineal descendant, then the property automatically goes to the beneficiary's lineal descendants per stirpes (“LDPS”) unless “no LDPS” is inserted after the beneficiary's name in the beneficiary deed. V.A.M.S. § 461.045, par. 1. The converse applies for all other beneficiaries, unless “and LDPS” is inserted. V.A.M.S. § 461.025, par. 2. If the beneficiary is an LDPS beneficiary, and does not survive the owner, then the beneficiary's share shall pass to the beneficiary's lineal descendants in the same manner as is directed by Missouri's general law of intestate succession (see § 19.3). The beneficiary's spouse does not receive anything in this circumstance. See V.A.M.S. § 461.045, par. 4.

If there are no lineal descendants, then the other named beneficiaries will take; if there are no such beneficiaries, the gift shall lapse. V.A.M.S. § 461.045, par. 5. The gift shall also be ineffective if the property is lost, destroyed, or involuntarily converted during the owner's lifetime, although the beneficiary will succeed to any cause of action or right the owner would have had with regard to the property if the owner had survived. V.A.M.S. § 461.037. The grantee of a beneficiary deed's may be a trust, even a revocable trust. V.A.M.S. § 461.025.1.


Cross-References