Transfer on Death Accounts in Georgia
You may have heard about designating your assets as “Transfer on Death” – but it’s a term unfamiliar to many people. Today we’re taking a closer look at what it is and the nuances of the Transfer on Death options in Georgia.
Transfer on Death is a provision that allows you to name a beneficiary for your assets outside a Will. Designating an asset, such as a bank account, for instance, as “Transfer on Death” means that the ownership of the asset transfers to the named beneficiary immediately upon your death. This allows you to avoid having that asset go through the probate process. In the case of a bank account, your named beneficiary would only have to go to the bank with a death certificate and the money in your accounts would immediately be available to them. They would not have to wait for your estate to close, nor would they be required to get court approval to expend funds from the account. This can make things much easier on your beneficiary during the time that they are already dealing with your death.
Why do I want to avoid probate?
Probate is the process where the court validates your Will and ensures that your wishes are carried out according to the provisions you have set out. If you do not have a Will, the probate process will determine who your heirs at law are and make sure that your assets flow to them. Probate is a useful and necessary function of the court. However, it can be an expensive, lengthy and drawn-out process which can place your family in a financial bind if they need to pay your bills or provide for your end-of-life arrangements. Having your financial accounts immediately available to take care of those needs can lift a huge burden off your family’s shoulders. They may still need to go through the probate process with other assets, but you can ease the financial burden on them at a time when they are already dealing with emotionally difficult times.
Click here to learn about the steps that need to be taken when someone dies.
Transfer on Death in Georgia
Designating your assets as “Transfer on Death” can be very helpful in avoiding probate, but in Georgia, not all assets can be set up this way.
In Georgia, financial accounts, like bank accounts or stock portfolios, can be sent up this way, but there are assets that cannot be handled through a Transfer on Death designation. In addition, designating an account as “Transfer on Death” is not something that is done through an estate document like a Will. Each account you want to handle this way will need to be set up as Transfer on Death with the financial organization that holds the account. Your bank or broker can help you with this.
Although many states allow you to designate a real estate or automobile title as a Transfer on Death account, up until recently Georgia did not allow this. Automobile titles still must pass under the provisions of your Will or Trust and cannot be titled as transfer on death. But the laws regarding real estate have changed. In July 2024, Georgia lawmakers updated the law to allow for what is commonly referred to as a Ladybird Deed, or a transfer on death deed. This means that the state of Georgia now recognizes transfer in death deeds and will allow real estate to pass from the decedent directly to the person named in the deed. This means that real estate can pass under the provisions of a Ladybird Deed and avoid probate. Keep in mind that it may still be best to transfer your real estate via a Trust at your death rather than through a Ladybird Deed. It’s important to work closely with an estate planning professional to determine what is best for you and your estate.
If you have set up your accounts as Transfer on Death, your named beneficiary does not have any rights to the account as long as you are still living. The contents of that account remain entirely yours and you can use them as you see fit. Your beneficiary has no legal access or rights until your death. This differs from Joint Ownership in that Joint Ownership gives the other owner full rights and access to account immediately – even while you remain alive.
Designating an asset as “Transfer on Death” will supersede any provision in your Will.
If you have an account set up as Transfer on Death, that designation will take precedence over any conflicting designation in your Will. The exception to this would be if the transfer of assets was deemed by a court to be fraudulent. If you want to change a Transfer on Death designation, you can do that with your financial institution, but not through your Will. Such a change can be made at any time during the owner’s life, as long as the owner is competent to do so.
Avoiding Probate for Vehicles
As mentioned above vehicles cannot be designated transferred on death in Georgia. This means, that without careful estate planning, these assets will need to go through the probate process. So, you’re probably asking: is there any way to transfer vehicles in Georgia without going through probate?
Yes, there is, but it could change your ownership rights while you are living. Titled property can be held in a Trust, or it can be jointly titled, meaning the title shows that you and another person own it, with a right of survivorship to whichever person is living. Talk with an estate planning professional like those at Siedentopf Law to discuss how placing real estate and vehicles in trust can affect your ownership rights while you are still living.
Should I Set up Transfer on Death Accounts?
Transfer on Death accounts can be a simple and useful way to handle certain types of assets allowing your beneficiaries to avoid probate. Revocable living trusts or joint ownership could be a better option for some of your assets, especially vehicles. To know which of your options will best meet your needs and help carry out your plans to provide for your loved ones, contact the estate planning professionals at Siedentopf Law. Don’t guess about the best choices to make. Call the experts at Siedentopf Law today to secure your family’s tomorrow.
If you have questions about Transfer on Death accounts or other ways to avoid probate, schedule a phone or video consultation with Siedentopf Law today.
