How to Pass Your Home to Your Family Without Probate
A Transfer on Death Instrument allows Illinois homeowners to pass real estate directly to loved ones without probate. It keeps ownership fully in your control during life while ensuring a smoother transfer after death. When done correctly, it can be a simple and cost-effective estate planning tool.
For many families, a home is more than just property. It is where memories are made, traditions are built, and life unfolds over decades. It’s no surprise that one of the most common estate planning questions we hear is: What’s the easiest way to make sure my house goes to my family?
Illinois law offers an option that works well in many situations — the Transfer on Death Instrument, often called a TODI.
Let’s walk through what it does, how it works, and what to watch out for.
What Is a Transfer on Death Instrument?
A Transfer on Death Instrument allows you to name one or more beneficiaries who will automatically receive your real estate when you pass away.
The key point is that the transfer happens only at death. Until then, nothing changes. The TODI is considered non-testamentary, meaning the property passes outside of probate and does not need to go through the court system.
That can save time, expense, and stress for the people you leave behind.
You Keep Full Control During Your Lifetime
One common concern is whether naming beneficiaries gives them rights before death. It does not.
Even after a TODI is signed and recorded, you remain the full owner of the property. You can sell it, refinance it, mortgage it, or change your estate plan entirely. Beneficiaries have no ownership interest and no say in what you do with the property while you’re alive.
What Makes a TODI Valid?
Illinois law is very specific about how a Transfer on Death Instrument must be handled.
To be valid, it must:
- Contain the essential elements of a deed
- Clearly state that the transfer occurs at death
- Be signed by all current owners of the property
- Be witnessed by two credible witnesses
- Be acknowledged before a notary
Most importantly, the TODI must be recorded before the owner’s death. This step is critical. An unrecorded TODI has no legal effect, no matter how carefully it was prepared.
Can a TODI Be Changed or Revoked?
Yes. A Transfer on Death Instrument can be revoked at any time during your lifetime.
This is usually done by recording a new TODI or recording a written revocation. Simply changing your mind or updating other estate documents is not enough. As with the original instrument, proper recording is what makes the change effective.
Is a TODI Right for Everyone?
For many homeowners, a Transfer on Death Instrument is a simple and efficient way to avoid probate while keeping full control of their property. But it is not the right solution in every situation, especially when there are multiple properties, blended families, creditor concerns, or long-term care planning issues.
That’s why it’s important to look at the whole picture, not just one document.
Clear Planning Brings Peace of Mind
At McGrath Law Office, P.C., we focus on helping clients understand their options and make informed decisions that fit their goals and family dynamics. Estate planning isn’t one-size-fits-all, and small details can make a big difference.
If you’re thinking about how to pass your home to your loved ones and want to understand whether a Transfer on Death Instrument makes sense for you, we’d be glad to talk it through with you.
Call our Mackinaw Office at 309-359-3461 or our Morton Office at 309-266-6211 to schedule a consultation.
