By: Peggy Kirk Hall, Asst. Professor, Agricultural & Resource Law
This is a re-post from the original article posted at: http://aglaw.osu.edu/
Many Ohioans choose to avoid the probate process by using a transfer on death designation. Since 2000, Ohio has permitted property owners to use transfer on death designations to transfer property upon the owner’s death. Since 2009, Ohio law has required property owners to make transfer on death designations by using an affidavit instead of a survivorship deed. Under a new Ohio law, transfer on death affidavits may automatically terminate after certain life events.
The new changes took effect on December 13, 2016 when the Governor signed Senate Bill 232 into law. Under Senate Bill 232, a transfer on death designation made either by a deed or by an affidavit to an owner’s spouse terminates if the property owner obtains a divorce, dissolution, or annulment. The new law applies to new and pre-existing transfer on death designations.
Because the law applies to pre-existing transfer on death designations, it may be a good time for property owners to revisit their estate plans. Property owners should be aware of the effect of divorce, dissolution, or annulment on their transfer on death designations.
The Ohio Legislative Service Commission’s analysis of Senate Bill 232 is available at: https://www.legislature.ohio.gov/download?key=5461&format=pdf
More information on transfer on death designations is available from the Ohio State Bar Association at: https://www.ohiobar.org/ForPublic/Resources/LawYouCanUse/Pages/LawYouCanUse-195.aspx