CONSTRUCTION LAWLETTERS

FOR INDUSTRY PROFESSIONALS, MANAGERS, TRADES & SUPPLIERS

J. NORMAN STARK, ATTORNEY-AT-LAW

JURIS DOCTOR, B. ARCHITECTURE, B.F.A

Vol. 2001-10 sp October, 2001

NEW OHIO STATUTE -
"TRANSFER ON DEATH" DEED

(Continued from September, 2001 issue.)

(2) Designation of contingent Transfer on Death Beneficiaries. A transfer on death deed may contain a designation of one or more persons as “contingent transfer on death beneficiaries” who will take the interest of the deceased owner that would otherwise have passed to the designated transfer on death beneficiary if the named designated TOD beneficiary does not survive the deceased owner or is not in existence on the date of death of the deceased owner. Contingent TOD beneficiaries must be identified in the deed by name. (R.C. 5302.22 (B)(2)).

(3) Designation Prior to Owner’s Death. Designation of a TOD beneficiary has no effect on the present ownership of real property, and a designated TOD beneficiary has no interest in the real property until thedeath of the owner of the interest. (R.C. 5302.22 (B)(3)).

(4) Revocation or Modification of Designation. The designation of any TOD beneficiary in a TOD deed may be revoked or changed at any time, without the consent of that designated TOD beneficiary, by the owner of the interest by executing, pursuant to the provisions of Chapter 5301 R.C., for conveyances of real property, by recording a deed conveying the grantor’s entire, separate interest in the real property to one or more persons, including the grantor, with or without designation of another transfer on death beneficiary. (R.C. 5302.22 (B)(4)).

(5) Interests Subject to Designation. Fee simple title or any fractional interest in fee simple title may be subjected to a transfer on death beneficiary designation. (R.C. 5302.22 (B)(5)).

(6) Interest Transferred. A designated TOD beneficiary takes only the interest that the deceased owner or owners held on the date of death, subject to all encumbrances, reservations, and exceptions. (R.C. 5302.22 (B)(6)).

(7) Lienholder’s Rights. Under this new law, lienholder’s rights including, but not limited to, any mortgagee, judgment creditor, or mechanic’s lienholder are not affected by the designation of a TOD beneficiary. If any lienholder takes action to enforce his lien, by foreclosure or otherwise through court proceedings, it is unnecessary to join the transfer on death beneficiary as a party defendant in the action, unless the TOD beneficiary has another interest in the real property that is vested at the time of the action. (R.C. 5302.22 (B)(7)).

(8) Non-Testamentary Nature of Transfer on Death Designation. Any real property or interest in real property transferred by virtue of the provisions of transfer on death deeds, to TOD beneficiary is not testamentary in nature. (R.C. 5302.22 (B)(8)).

(Next issue – NEW OHIO DEED FORM)

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Author:  J. NORMAN STARK is an Attorney-at-Law, a Registered Architect, (AIA, NCARB) Registered Landscape Architect, Interior Designer, Planner and Senior Appraiser (ASA), admitted to practice law before the Bar of Ohio, the US District Courts, Ohio and Illinois (Central Dist.), the US Court of Appeals, and the United States Supreme Court. He has had experience in business, Construction, Real Property, Litigation and Construction-Legal Project and Crisis Management.

 


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