Episode Transcript
[00:00:00] Speaker A: Hi there. Welcome to another episode of Investment Insight presented by McKay Wealth Advisory. I'm Bradley Covert sitting down Today with Brent McKay. Brent, we've seen some new rules coming out around transfer on death title options. Can you tell us a little bit about that?
[00:00:12] Speaker B: Sure. So obviously we aren't attorneys, but Americans have trillions of dollars in wealth in their homes. Baby boomers, for instance, are estimated have $17 trillion in wealth locked in their homes. And so 35 US states now allow a form of transfer on death on the title of your property. Now, Tennessee is not one of the states currently there is a bill for Tennessee to become a state that would allow you to do a deed change to do a transfer on death on your deed. Now, Missouri and Texas and Florida, for instance, are among some of the 35 states that currently allow this. Now, these things are very interesting way to handle things, but they don't account for all the complications of life. So properties work a lot differently than standard investments because, you know, if you buy bank of America stock, for instance, you don't have to necessarily put any more money in if something changes. Now with the property's a little different. So we'll give you an example. There was, according to this Wall Street Journal article, there was a Minnesota man who named his niece as a beneficiary of his property. Well, his ex wife, after he died, decide to burn his house down because his niece was not on the homeowner insurance policy.
The court ruled the insurance company did not have to pay out on the claim of replacing the house or the value of the house.
[00:01:35] Speaker A: Wow.
[00:01:36] Speaker B: And so as some of these laws work through the system, one thing to be careful with is to make sure that you got these details covered because Unlike just transferring 100 shares of bank of America 50 shares to two people, it's a little more complicated. And so then you've got the other deal with properties. We got maintenance, your utility bills and insurance and property taxes and mortgages. And those are expenses that normally go through a probate process where you'll then basically the bills, wait until you can pay them, then you pay them and then you transfer what's left. And so we're not attorneys, but we still people are looking at this new way of transferring property to their heirs. Still would want to encourage you to look at a will probate option where you go through the formal process or a trust. You know, we've got different attorneys we work with. A lot of people will pick a trust to simplify the probate process because there is no probate if it's in a trust, it's done correctly. But this is a new law showing changing times, and we would expect the future, even Tennessee residents will get this option.
[00:02:36] Speaker A: Fantastic. Well, thanks for keeping us updated on that. Thank you for joining us. We'll see you next time.
