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In Ohio, a Transfer on Death (TOD) designation affidavit allows:

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Question & Answer

Review the question and all answer choices

A

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.

B

Property to pass to beneficiaries without probate upon owner's death

Correct Answer
C

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.

D

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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