Q: Which is better: add child to deed or do a Transfer on Death (TOD)?: In Wisconsin, to minimize taxes upon death, should I add my only child to my real estate deed or should I so a TOD? What are the pros/cons of each? We live in Wisconsin.
A: Keith’s answer: Both options avoid probate. One option keeps control and the other shares control over the asset. Adding a child to the real estate deed requires you to coordinate and share control with that child. Both of you are liable for the taxes and expenses for maintaining that real estate. If you have a Transfer on Death Deed (TOD), you maintain control over real estate, taxes and financing. The child does not exercise any control until after you pass away, once they have used the state rules for transferring the real estate into their name. Each method has advantages, but it depends on how much control you want to maintain prior to your death. Checking with an estate planning attorney in WI may be helpful in making an appropriate decision in this case.
This answer does intend to provide legal advice but only shared for educational purposes. Each person should personally consult a licensed attorney to see how their situation can be addressed in their state. Be advised, this may not be the final answer to the question, but based on the facts presented, a possible answer is provided.