What Happens to Your House When You Die in Illinois?

If you own real estate in Illinois, understanding what happens to your property after death is essential for effective estate planning. The outcome largely depends on how your property is titled and whether you’ve taken steps to avoid probate.

Property Title Matters

Your home may be titled in one of several ways:

• Joint Tenancy
• Tenancy in Common
• Tenancy by the Entirety
• Held in a Trust

If you’re the sole owner and the property is not in a trust, it will likely go through Illinois probate court unless you’ve created an estate plan. In many cases, a Transfer on Death Instrument (TODI) may be the most efficient solution.

What Is a Transfer on Death Instrument (TODI)?

Under Illinois law (755 ILCS 27/1 et seq.), a TODI is a legal document that allows a property owner to designate beneficiaries who will receive the property upon the owner’s death—without going through probate.

Benefits of a TODI in Illinois

• Avoids Probate: Property transfers directly to beneficiaries, saving time and legal costs.
• Owner Retains Control: You can sell, refinance, or change beneficiaries during your lifetime.
• Simple Process: Easier to create than a trust, with fewer legal formalities.
• Cost-Effective: Avoids court and attorney fees associated with probate.

How to Create a TODI in Illinois

1. Consult an Estate Planning Attorney: Ensure your TODI complies with Illinois law and reflects your wishes.
2. Record the TODI: File it with the county recorder’s office where the property is located.
3. Notify Beneficiaries: Let them know about their future interest to prevent disputes.

Important Considerations

• Revocation: You can revoke or amend the TODI anytime before death, but changes must be properly recorded.
• Tax Implications: Beneficiaries should consult a tax advisor to understand potential tax consequences.

Need Help with Estate Planning in Illinois?

If you’re considering a TODI or other estate planning options, contact our experienced attorneys at 618-551-0300. We serve clients in Belleville, Columbia, and Edwardsville, Illinois.

Content contained on this site is for informational purposes only and should not be considered legal advice. You should consult an attorney of your choosing to discuss your particular case and to obtain legal advice specific to your situation.