Transfer-on-Death Deed

TRANSFER-ON-DEATH INSTRUMENT — STATE OF ILLINOIS

Pursuant to 755 ILCS 27/1 et seq. (Real Property Transfer on Death Instrument Act)

Table of Contents

1. Caption and Title
2. Owner/Transferor Information
3. Beneficiary Designation
4. Property Description
5. Transfer-on-Death Designation
6. Revocability
7. Effect on Existing Interests
8. Multiple Beneficiary Provisions
9. Signature, Witnesses, and Notarization
10. Recording Information
11. Illinois-Specific Notes
12. Sources and References

1. Caption and Title

PREPARED BY:
[________________________________]

MAIL TO:
[________________________________]
[________________________________]
[________________________________]

PERMANENT INDEX NUMBER (PIN): [________________________________]

ADDRESS OF PROPERTY: [________________________________]

TRANSFER-ON-DEATH INSTRUMENT
(Illinois Real Property Transfer on Death Instrument Act — 755 ILCS 27/1 et seq.)

2. Owner/Transferor Information

THIS TRANSFER-ON-DEATH INSTRUMENT is made on [__/__/____] by:

Owner (Transferor):

Additional Owner (if applicable):

3. Beneficiary Designation

Designated Beneficiary(ies):

Primary Beneficiary:

Additional Beneficiary (if applicable):

Alternate/Contingent Beneficiary:

4. Property Description

The real property subject to this Transfer-on-Death Instrument is located in [________________________________] County, State of Illinois, and described as follows:

Legal Description:
[________________________________]
[________________________________]
[________________________________]

Commonly Known As (Street Address):
[________________________________], Illinois [____]

Permanent Index Number (PIN): [________________________________]

5. Transfer-on-Death Designation

The Owner hereby designates that upon the Owner's death, the above-described real property shall transfer to the Designated Beneficiary(ies) identified in Section 3, subject to the following:

1. Effective Date: This transfer becomes effective only upon the death of the Owner (or the last surviving Owner if multiple owners execute this instrument). The Owner retains full ownership and control during lifetime.

2. Nontestamentary: This instrument is nontestamentary. It is not a will and is not subject to the requirements for execution of a will.

3. No Present Interest: The Beneficiary(ies) acquire(s) no present legal or equitable interest during the Owner's lifetime.

4. Statutory Authority: This instrument is executed pursuant to 755 ILCS 27/1 et seq.

6. Revocability

THIS TRANSFER-ON-DEATH INSTRUMENT IS REVOCABLE.

The Owner may revoke this instrument only by:

☐ Recording another Transfer-on-Death Instrument for the same property
☐ Recording an instrument of revocation that expressly revokes this TOD instrument

Critical Requirements:

• A TOD instrument can only be revoked by a recorded instrument — revocation by will or unrecorded document is not effective (755 ILCS 27/40)
• The revoking instrument must be recorded before the Owner's death
• The revoking instrument must comply with the same execution requirements (signature, two witnesses, notarization)

7. Effect on Existing Interests

This Transfer-on-Death Instrument does not:

• Transfer any present interest in the property
• Affect any existing mortgage, lien, or encumbrance
• Sever a joint tenancy or tenancy by the entirety
• Affect the Owner's right to sell, mortgage, or dispose of the property

The Beneficiary(ies) take(s) the property subject to all existing encumbrances, mortgages, liens, and creditor claims at the Owner's death.

8. Multiple Beneficiary Provisions

If multiple beneficiaries are designated:

☐ Tenants in Common: Beneficiaries take as tenants in common in the shares specified.
☐ Joint Tenants with Right of Survivorship: Beneficiaries take as joint tenants.

If a designated beneficiary predeceases the Owner:
☐ The share passes to the alternate/contingent beneficiary.
☐ The share is divided among surviving beneficiaries.
☐ The share lapses and becomes part of the Owner's estate.

9. Signature, Witnesses, and Notarization

OWNER'S SIGNATURE:

_____________________________________________
Signature of Owner

Printed Name: [________________________________]
Date: [__/__/____]

_____________________________________________
Signature of Additional Owner (if applicable)

Printed Name: [________________________________]
Date: [__/__/____]

WITNESS ATTESTATION (Two witnesses required — 755 ILCS 27/25)

Witness 1:
The foregoing instrument was signed, sealed, and declared by the Owner as a Transfer-on-Death Instrument, in my presence, and I, at the Owner's request, have subscribed my name as a witness.

_____________________________________________
Signature of Witness 1
Printed Name: [________________________________]
Address: [________________________________]
Date: [__/__/____]

Witness 2:

_____________________________________________
Signature of Witness 2
Printed Name: [________________________________]
Address: [________________________________]
Date: [__/__/____]

NOTARY ACKNOWLEDGMENT

STATE OF ILLINOIS
COUNTY OF [________________________________]

I, [________________________________], a Notary Public in and for said County, in said State, hereby certify that [________________________________], whose name(s) is/are signed to the foregoing instrument, and who is/are known to me, acknowledged before me on this day that, being informed of the contents of the instrument, he/she/they executed the same voluntarily.

Given under my hand this [____] day of [________________________________], [____].

_____________________________________________
Notary Public
My Commission Expires: [__/__/____]

[NOTARY SEAL]

10. Recording Information

RECORDING REQUIREMENTS:

☐ This instrument must be recorded in the office of the recorder of the county (or counties) where the property is located before the Owner's death
☐ An unrecorded TOD instrument is not effective
☐ Include the PIN on the instrument
☐ Recording fees per the county recorder's schedule apply
☐ An Illinois Real Estate Transfer Declaration is not required at the time of recording the TOD instrument (no transfer of ownership occurs until death)

Upon the Owner's Death:

☐ Certified copy of the Owner's death certificate — recorded with the county recorder
☐ Affidavit of heirship or survivorship
☐ Illinois Real Estate Transfer Declaration (PTAX-203), if required at that time

11. Illinois-Specific Notes

Surviving Spouse Renunciation

Under Illinois law, a surviving spouse may renounce a TOD instrument to claim their statutory share of the decedent's estate. The surviving spouse's elective share rights under 755 ILCS 5/2-8 may apply to property transferred by a TOD instrument.

Joint Tenancy and Tenancy by the Entirety

A TOD instrument does not sever a joint tenancy or tenancy by the entirety (755 ILCS 27/30). If the property is held in joint tenancy, the TOD instrument is effective only as to the interest of the last surviving joint tenant.

Creditor Claims

Beneficiaries take the property subject to existing encumbrances and potential creditor claims. If the Owner's probate estate is insufficient, creditors may have recourse against the transferred property.

Illinois Estate Tax

Illinois imposes its own estate tax with an exemption threshold (currently $4 million). Property passing by TOD instrument is included in the decedent's taxable estate for Illinois estate tax purposes.

Medicaid Estate Recovery

Property transferred by TOD instrument may be subject to Illinois Medicaid estate recovery. The Illinois Department of Healthcare and Family Services may seek reimbursement from property transferred by TOD instrument. Consult an elder law attorney.

Real Estate Transfer Tax

Illinois and certain municipalities (including Chicago and some Cook County municipalities) impose real estate transfer taxes. The applicability of these taxes to the post-death transfer should be confirmed.

Cook County vs. Downstate

Recording practices and fees may vary between Cook County (which has a separate recorder's office and Torrens system for some properties) and downstate counties.

12. Sources and References

• 755 ILCS 27/1 et seq. — Real Property Transfer on Death Instrument Act
• 755 ILCS 27/25 — Execution Requirements
• 755 ILCS 27/30 — Effect on Joint Tenancy
• 755 ILCS 27/40 — Revocation
• 755 ILCS 5/2-8 — Surviving Spouse Renunciation
• 35 ILCS 405/1 et seq. — Illinois Estate and Generation-Skipping Transfer Tax Act

This template is provided for informational and educational purposes only and does not constitute legal advice. Consult a licensed Illinois attorney before executing any transfer-on-death instrument.