Real Property Transfer on Death Instrument Act: Understanding the Amendment
On July 9th, 2021, Illinois Governor JB Pritzker signed the Real Property Transfer on Death Instrument Act. In a slew of major, new real estate laws coming into fruition, the latest Act took effect on January 1st, 2022.
Understanding the Original Real Property Transfer on Death Instrument Act
Essentially, the Real Property Transfer on Death Instrument Act allowed those who own residential real estate to designate a beneficiary. This process is done through a Transfer on Death Instrument (TODI).
When utilized, the Act permits the beneficiary to avoid real estate probate after the original owner passes away. For Illinois residents this Act provides value to those who aren’t set up with a revocable trust, but also don’t wish to have their designated beneficiaries go through probate court.
Amendments to the Real Property Transfer on Death Instrument Act
On the July 9th, 2021 signing, Governor JB Pritzker placed several amendments to the Real Property Transfer on Death Act into law. First, the Transfer on Death Instrument may now be applied to any form of real estate located throughout Illinois, including commercial property. Beforehand, the Act limited its scope towards residential real estate.
Next, the amendments supplied language clarifying that the Transfer on Death Instrument may apply to an existing trust. Furthermore, the new language makes it so that the owner of the TODI doesn’t have to specify whether the owner received special consideration (i.e., money or another incentive) for executing the TODI.
Summary
As of the beginning of this year, the amendments to the Real Property Transfer on Death Instrument Act offer more flexibility to residents throughout the state of Illinois. Not only has the law expanded to pertain to commercial matters, the recent amendments offered additional clarifying language in previously ambiguous areas.
For legal guidance on Illinois real estate matters, schedule an appointment with the attorney at Lee Scott Perres, P.C.
