Transfer-on-Death Instrument
Illinois law allows property owners to file a Transfer-on-Death Instrument (TODI) that automatically transfers real estate to named beneficiaries upon death, avoiding probate.
Requirements
- Must be recorded before death
- Can name one or more beneficiaries
- Can be revoked or changed anytime
- Must meet deed requirements (notarized, proper legal description)
- Does not affect Medicaid eligibility or property tax exemptions
Benefits
- Avoids probate for real estate
- Retain full control during lifetime
- Can be changed or revoked
- Simple and inexpensive to create
Limitations
- Only works for real estate
- Subject to your debts and liens
- May cause title issues if beneficiary dies first
- No incapacity planning