In 2024, Georgia joined a handful of other states that have transfer-on-death deeds (sometimes called “Ladybird deeds”). These deeds have the potential to provide an easy and revocable way to pass real property upon death without probate. [1]
Although this new type of deed may become a very useful tool for estate planning, there are issues and limitations in the new law that may limit, for now, how widely it is used.
Why use it?
Before TODDs were introduced, Georgia had a few options to allow someone to pass their property to someone after their death: Wills, adding someone to title, and trusts.
- how much control over the property the owner maintains or shares during their life,
- whether the owner can change their mind later and revoke the gift,
- the cost and complexity of the solution, and
- whether the property has to go through the probate process. [2]
How does it work?
The language for the deed itself is contained in a statute at O.C.G.A. § 44-17-3. Like other deeds, the TODD must meet the Georgia legal requirements for a deed, including being signed by the Grantor and two witnesses, one of which must be a notary. [3]
[1] This article assumes that an owner wants to avoid probate, which is not necessarily an un-alloyed good.
[2] There are also potential tax consequences that vary among these methods, which this article does not address. This article is not tax advice.
[3] This is not a comprehensive list of Georgia’s legal requirements for drafting, executing, or recording deeds.