• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sexton, Bailey Attorneys, PA

SEXTON BAILEY ATTORNEYS, PA an Arkansas Estate Planning & Trust Information Center

Sexton, Bailey Attorneys, PANorthwest Arkansas Estate Planning Attorneys(479) 443-0062

Client Vault
  • Home
  • Our Firm
    • About Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Our Reviews
    • Speaker Connection
  • Estate Planning
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • FREQUENTLY ASKED QUESTIONS
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Trust Administration & Probate
    • Newsletters
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog
Home / Asset Protection / Is Transfer On Death a Good Estate Planning Option?

Is Transfer On Death a Good Estate Planning Option?

October 23, 2013 by Audra Bailey Wilcox Leave a Comment

It is not unusual for family members to look for easy ways to transfer property to relatives and loved ones when they die.  Some have been through the probate process with another loved one and want to avoid the delays and red tape that are often a part of it.  But whether an estate is probated or not, some legal process must be used for almost anything that is transferred from one person to another.

One item that must be transferred by a change of title is a car or other motor vehicle.  Many people assume that they can just start driving a car that the deceased person owned without any further legal action.  But what happens when you later want to sell the car and the title isn’t in your name?  Or if you are stopped by the police and the registration isn’t in your name?  Just like driving a car off of a dealer’s lot without registering it in your name, you don’t legally own the car.

One method of passing title without probate in Arkansas is called “transfer on death” or TOD.  When the owner registers the vehicle, it will say something like “John Smith, TOD Jack Smith.”  As long as John is alive, he is the legal owner of the vehicle.  When John dies, the title automatically transfers to Jack, although Jack will have to go to the Department of Motor Vehicles with John’s death certificate to “legally” complete the transfer.

While this seems relatively easy compared to probate, just like many other estate planning strategies, a transfer on death may be subject to pitfalls that require the advice of an estate planning attorney.   First of all, the new owner may have to pay taxes on the value of the car.  Second, a TOD takes precedence over a will.  If you forgot that you did a TOD to your ex-wife, then leave the car to your current wife in your will, your ex-wife still gets the car.  And, if the car is very valuable or an antique, putting it in a trust may be a better way.  But whatever the value, sentimental or financial, make sure to consult an estate planning attorney to make sure that a transfer on death is the best option for your circumstances.

  • Author
  • Recent Posts
Audra Bailey Wilcox
Audra Bailey Wilcox
Attorney at Sexton, Bailey Attorneys, PA
Audra Bailey Wilcox
Latest posts by Audra Bailey Wilcox (see all)
  • Bill Nye the Science Guy on Wearing Masks in Public - July 11, 2020
  • Low-Interest Loans: An Estate Planning Technique - June 23, 2020
  • Irrevocable Medicaid Trusts - June 16, 2020

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sexton, Bailey Attorneys, PA

Is Your Plan Outdated?

Subscribe to Our Blog

Office Address

Fayetteville
2766 Millenium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

Office Address

Farmington
6 West Main
Farmington, AR 72730
Phone: (479) 267-4441

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2021 American Academy of Estate Planning Attorneys, Inc.