State-Specific Nuances Worth Noting
Missouri:
- RSMo § 461.025 governs beneficiary deeds.
- Recording must occur prior to the owner’s death in the county where the property is located.
- A properly recorded beneficiary deed takes precedence over a will. If a will directs the property to be divided among all children but the deed names only one, the beneficiary deed is enforced.
- Missouri law requires that a named beneficiary survive the owner by 120 hours (5 days) to inherit the property. If they do not, the deed is considered void as to that beneficiary.
Illinois:
- 755 ILCS 27/1 et seq. (the Illinois Residential Real Property Transfer on Death Instrument Act) governs beneficiary deeds.
- TODIs must be witnessed by two credible witnesses in addition to being notarized. Strict compliance is mandatory; courts have invalidated deeds for minor errors.
- After the owner’s death, beneficiaries must file a Notice of Death Affidavit and Acceptance of TODI within two years to complete the transfer.
- A TODI supersedes a will. If a will and a TODI have conflicting instructions regarding the same property, the TODI controls.
- Because Illinois imposes its own estate tax, beneficiaries should verify whether the home increases the taxable estate above the exemption threshold (currently $4 million).
Coming soon… Part 8: Practical Considerations for Homeowners
This article is intended for educational purposes and does not constitute legal advice. For advice specific to your situation, please consult a qualified attorney.
