By Andrew Rutz

Probate is a judicial process to oversee the distribution of a person’s property when they die.  Probate typically involves a lawyer because conveying title and possession of property usually requires drafting and recording a legal document.  Because a lawyer is involved, probate can generate attorney fees.  The attorney fees are directly proportional to the complexity of property distribution – the more complex the estate, the higher the attorney fees.  Consequently, a good estate plan is important, because it saves money that can be given to your survivors.  One of the useful tools to avoid probate is the Indiana Transfer on Death Act.

The Indiana Transfer on Death Act is codified under Indiana Code Chapter 32-17-14.  It was enacted on July 1, 2009. Before its enactment, Indiana law required that for a deed to be effective upon the death of the grantor, it had to involve a gift of a remainder interest with the grantor retaining a life estate interest. The Act introduced the ability for individuals to execute transfer on death (TOD) deeds, allowing property to pass directly to designated beneficiaries upon the owner’s death without the need for probate. This marked a significant shift in Indiana property law, providing a streamlined mechanism for transferring property upon death. This is especially important because most people accrue wealth in two places: their home and their retirement accounts.  Retirement accounts are best managed using beneficiary designations to avoid probate, and now – thanks to the Indiana Transfer on Death Act – an estate plan can manage the second large repository of wealth using a beneficiary designation to avoid probate.  For questions about your estate plan and how to avoid probate using the Indiana Transfer on Death Act, call one of the estate planning attorneys at Lorch Naville Ward LLC