What Is The Differece Between A Living Trust VS a TODD?

Estate planning options like a living trust and a TODD (Transfer on Death Deed) can make it easier for your assets to be distributed when you pass away. However, they are different in how they operate.

A living trust is a legal document that allows you to transfer ownership of your assets to a trust while you are still alive. The trust then manages those assets for your benefit during your lifetime and allows for their efficient transfer to your designated beneficiaries upon your death. A living trust can also help avoid probate, which is the court-supervised process of distributing your assets after you die.

A TODD is a type of deed that enables you to choose one or more beneficiaries to receive your real estate after your passing without going through the probate process. You can continue to use and administer the property as you choose while maintaining ownership of it through a Trust. The property only automatically transfers to your chosen beneficiaries after your death.

One key difference between a living trust and a TODD is that a living trust can be used to manage all types of assets, including real property, bank accounts, and investments. A TODD is specific to real property and cannot be used to transfer other types of assets.

A living trust can provide you more freedom and control over how your assets are distributed, whereas a TODD is a relatively easy and quick way to transfer real estate without going through the probate process.

Ultimately, the choice between a living trust and a TODD will depend on your specific goals and circumstances. It's important to consult with an estate planning attorney to determine which option is best for you.

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