In South Carolina, there's a new law that lets you add a "Transfer on Death" (TOD) designation to the title of personal property like cars, boats, or mobile homes. This means you can name someone to automatically receive the property when you pass away, without going through probate.
Here's how it works:
- If you have a TOD designation, the property goes directly to the person you named when you die.
- If you name more than one person, they will share the property equally. They won't automatically inherit each other's shares unless they change the title to allow that.
- If no one you named is alive when you pass away, the property becomes part of your estate.
For multiple owners to use a TOD, they must have "right of survivorship" ownership. This means if one owner dies, the other automatically inherits their share.
- If the title uses "OR" between names, it means joint ownership with survivorship rights.
- If it uses "AND," it means each owner has a separate share.
It's important to keep your TOD designations updated, especially if circumstances change or if a beneficiary passes away. While TODs can be convenient, they might not be the best choice for everyone, especially if you have multiple beneficiaries.
