Transfer on Death Deed
By Jim Palmer Jr.

Can you believe our state government would do something that actually made life,…or death easier?  Well it appears that they have outdone themselves, but they certainly didn’t go out of their way to publicize that fact.  Effective June 2014, the Washington State legislature passed a bill that can make the transfer of property at death a much less tedious task.
Previous to this new law, upon the death of a property owner, the property could only be transferred after a probate process, except in some limited circumstances.  Now, the property owner may sign a “Transfer on Death Deed” while they are still alive, granting the property to someone, or several persons jointly, which is not effective until the actual death of the grantor.  When the death certificate is recorded, the title is perfected even though the actual transfer happens at time of death.

One good thing about this legislation is that probate can be avoided prior to property being transferred and the property can be transferred directly to the intended beneficiaries.  A disagreeable executor would not have any say in the matter!  

An excise tax affidavit is not needed when a Transfer on Death Deed is recorded prior to grantors death, but upon the death of the grantor and the effective transfer of the property to the grantees, it is required and some tax may be levied if the transfer isn’t a simple inheritance, such as in a contractual obligation between the grantor and the grantee.

A major drawback is that any DSHS lien against the deceased persons estate  can still be levied against the property for up to 24 months, excepting that if Special Notice to Creditors is given (as described in RCW 11.42.020) the executor can limit the filing of creditor’s claims to a 4 month window.  If a creditor fails to file a claim within that period, their claim is barred forever.

Families often go to great lengths to transfer the property of an ailing relative by Quit Claim or other instrument in order to avoid taking responsibility for such debts.   I can understand the family wanting to protect assets but I also think if the deceased person used resources of the state and have legitimate assets such as real estate to draw upon, then they have a moral obligation to pay that debt instead of laying that burden on the community.

Contact a trusted attorney for more information regarding this great tool!