Living Trust vs. Transfer on Death Deed(TODD): Understanding Your Options

*DISCLAIMER: Signature on Demand is not a law firm and does not provide legal advice. The information provided is for general informational purposes only and should not be considered a substitute for legal counsel. For legal advice specific to your situation, please consult a licensed attorney.*

When it comes to planning how your assets will be handled after your passing, it’s important to understand your options. In Nevada, two common tools used to avoid probate are the Living Trust and the Transfer on Death Deed (TODD). Both have the potential to simplify the transfer of assets, but they serve different purposes and come with their own pros and cons.

Here’s a general overview to help you better understand the difference between these two estate planning tools.

What is a Living Trust?

A Living Trust is a legal document that places your assets into a trust during your lifetime. You remain in control as the trustee and name a successor trustee who will manage or distribute your assets when you pass away.

Potential Benefits:

- Bypasses the probate process for assets placed in the trust.

- Allows for detailed instructions on how and when assets are distributed.

- Maintains privacy, as trusts are not public record.

- Can include provisions for incapacity management.

Possible Drawbacks:

- Requires more time and effort to set up and fund.

- May involve higher upfront preparation costs.

- Must be properly maintained over time to remain effective.

What is a Transfer on Death Deed (TODD)?

A TODD allows a property owner to name one or more beneficiaries who will receive real estate automatically upon the owner's death, without the need for probate.

Potential Benefits:

- Simple and low-cost method for transferring real property.

- Property ownership remains fully in your name during your lifetime.

- Can be revoked or changed at any time before death.

- No trust administration is required.

Possible Drawbacks:

- Only applies to real estate—does not address personal property, bank accounts, or other assets.

- Does not include provisions for incapacity.

- May lead to complications if multiple beneficiaries are involved or if the property has unresolved debts.

General Considerations

The decision between using a Living Trust or a TODD depends on your goals, the complexity of your estate, and how you want your assets to be managed and distributed. Each has unique features, and individuals may use one or both depending on their circumstances.

Explore Estate Planning Tools with Signature on Demand

At Signature on Demand, we offer professionally prepared self-help estate planning tools—including Living Trusts and TODDs—designed to help you take action toward organizing your affairs. All materials come with clear instructions and are prepared with convenience and affordability in mind.

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Book a Consultation Now https://calendly.com/felicetouchane1/document-preparationhttps://www.signatureondemand.net to learn more about the services we offer and how we can assist you in preparing your own estate plan.