In Ohio, a Transfer on Death (TOD) designation affidavit allows:
Question & Answer
Review the question and all answer choices
Immediate transfer of property
A is incorrect because a TOD designation does not allow immediate transfer of property. The transfer only occurs upon the owner's death, not at the time the designation is created.
Property to pass to beneficiaries without probate upon owner's death
Tax-free property transfers
C is incorrect because TOD designations do not provide tax-free transfers. The property transfer is still subject to applicable estate taxes and gift taxes as determined by federal and state law.
Avoiding all estate taxes
D is incorrect because TOD designations only avoid probate, not all estate taxes. They do not provide estate tax advantages or eliminate the owner's potential estate tax liability.
Why is this correct?
B is correct because a TOD designation specifically allows property to pass directly to named beneficiaries upon the owner's death without going through probate court, while maintaining the owner's full control during their lifetime.
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