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

Answered
  • 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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.