Andalusia, AL asked in Estate Planning and Real Estate Law for Oklahoma

Q: Does the Transfer-On-Deed in Oklahoma allow the listed features below?

Does the Transfer-On-Deed in Oklahoma allow the listed features below?

(1) Does it allow the property owner to retain his homestead creditor and tax exemptions?

(2) Does it keep the property owner's home exempt from Medicaid claims during his lifetime?

(3) Does it allow the property owner to pass the property to his heirs outside of probate upon death free of Medicaid claims and liens?

(4) Does it allow the property owner to sell or otherwise dispose of the property without the consent of the beneficiaries?

(5) Does it allow no capital gains tax if the property is sold shortly after death? Not sure of time element.

1 Lawyer Answer
Tyler R. Barrett
Tyler R. Barrett
  • Estate Planning Lawyer
  • Norman, OK
  • Licensed in Oklahoma

A: A Transfer-on-Death Deed does not constrain the grantor's ability to sell the property during his/her lifetime. In addition, generally speaking, because a Transfer-on-Death Deed is a testamentary transfer (meaning it takes effect at death), the tax treatment is the same as property disposed of by Will or Living Trust.

Regarding your questions about Medicaid, I would strongly advise you to consult in person with an attorney knowledgeable in this area. Medicaid is an extremely complex program. Eligibility, exemptions and the like depend on a series of factors that differ from situation to situation. Therefore, your questions have no black and white answers. Furthermore, if Medicaid planning is your primary objective, a Transfer-on-Death Deed may not be the best option.

Lastly, I would say this: there are no quick and easy fixes in the law, especially as it relates to Medicaid. A DIY approach is at your own peril. I understand that cost is an issue for most people. However, an investment now could pay big dividends later and give you peace of mind. I offer free, no obligation consultations.

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