[IL] [IL] If I inherit a house via a Transfer on Death Deed, can I sell it?

Lexi, Chatbot

I’m sorry to hear about your situation. Are you looking to understand a TODD in the event of your mother’s passing?

Lexi, Chatbot

Do you have any specific concerns or details about Todd that you would like the lawyer to know?

Lexi, Chatbot

Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with TODD.

Andres Sanchez

Hello, my name is Andres Sanchez and I am an attorney with 20 years of experience. What state are you in?

Andres Sanchez

It sounds like you’re referring to a TODD, which stands for Transfer On Death Deed — technically called a Transfer On Death Instrument (TODI) in Illinois. Here’s what you should know:

1. What is a TODI?
   In Illinois, a TODI allows your mom to designate someone (you? Todd?) as the beneficiary of her home upon her death, bypassing probate. She signs and records it while alive, and it only takes effect after she passes.

2. How does it affect the mortgage and ownership?

• During her life: Your mom retains full control. She can sell, refinance, or change the beneficiary. She also remains responsible for mortgage payments, taxes, and upkeep.
• After her death: The property — and any existing mortgage — transfers to the beneficiary. They’ll need to continue payments or negotiate with the lender.

3. Is a TODI something to prepare?
   If your mom hasn’t already set up a clear plan in a will or trust, a TODI is a useful tool. But you should consider the following:

• Recording: It must be signed before two witnesses, notarized, and recorded at the county recorder’s office before her death.
• Revocable: She can revoke or change it anytime while alive.
• Debt liability: The beneficiary takes the property subject to the mortgage, meaning they’ll be responsible for the payments and any debts tied to the house.

4. Possible pitfalls
   Illinois law protects lenders — executing a TODI doesn’t trigger due-on-sale clauses during her life. However, errors in drafting (such as an incorrect legal description or failure to record properly) can void the TODI and send the property through probate.

5. What you can do now
   Here’s a step-by-step plan to consider:

• Confirm her plan: Does she already have a will, trust, or TODI naming a beneficiary?
• If not, discuss whether she wants to set up a TODI. It’s less expensive and faster than a trust, but precise drafting is key.
• Work with an attorney to ensure the legal description, signatures, witnesses, notary, and recording are all correct.
• Account for the mortgage: The chosen beneficiary must be willing and able to take on payments or refinance.

Andres Sanchez

Yes — if you inherit your mother’s house through a properly executed Transfer On Death Instrument (TODI) in Illinois, you’ll own the house outright (subject to any existing mortgage) once the death certificate and an affidavit are filed. Here’s what that means for selling:

1. You will have full ownership
After your mother’s death, the house passes to you automatically outside of probate, but it transfers with any existing mortgage still attached. Once the TODI beneficiary affidavit is recorded, you become the legal owner.

2. You can sell it
You can sell the property just like any other owner. The only condition is that the mortgage must be paid off — either at closing or beforehand. The title company handling the sale will require the mortgage to be satisfied from the sale proceeds.

3. No extra restrictions
A TODI doesn’t restrict your ability to sell. It’s just like inheriting through a will, except you avoid probate delays. You don’t need permission from the lender to sell (but you must satisfy the mortgage).

Key points:

• You do not have to live in the home.
• You do not have to keep the mortgage long-term.
• You are responsible for any liens or debts on the property.
• You should maintain insurance until the property is sold.

Andres Sanchez

It could be. Sorry, I don’t know for sure.

Andres Sanchez

Do you have any other questions?

Andres Sanchez

It appears I have answered your question. Best of luck.