A Practical Guide to TODIs, Joint Tenancy, and Small Estate Affidavits
When someone passes away, their assets don’t automatically go to their loved ones. In many cases, those assets must go through a legal process called probate.
Most people want to avoid probate. It can be time-consuming, expensive, and stressful — especially when you’re grieving a loved one. Even if your assets are few, proper planning ensures that your loved ones receive what you intended and don’t have to worry about probate.
As an experienced probate attorney, Jim Ackerman can help your family through the probate process, but he can also show you affordable ways to avoid probate in Illinois.
What is Probate?
Probate is the process of distributing a person’s assets after they die. Overseen by the courts, probate ensures that the person’s debts are paid and any property is transferred according to the person’s will. If the person doesn’t have a will, the state will distribute the assets.
When is probate required?
Probate is required when the estate includes assets that exceed a certain value or includes real estate that is not otherwise exempt. In Illinois, the asset value threshold is $100,000.
How to Bypass Probate in Illinois: The Small Estate Affidavit & TODI
Illinois allows estates to bypass formal probate if:
- The total value of probate assets is less than $100,000, and
- The estate does not include real estate.
If you or your loved one meets these factors, you can use a Small Estate Affidavit to claim assets without opening a probate case.
The Small Estate Affidavit is a sworn statement listing the deceased’s assets and debts, and it must be signed before a notary public.
Non-Probate assets are assets that are jointly owned or have a Transfer on Death (TOD) designation. Non-probate assets don’t count toward the $100,000 maximum.
What is a Transfer on Death Instrument (TODI)?
A Transfer on Death Instrument (TODI) is a legal designation that allows Illinois residents to name a beneficiary for their home so it will pass directly to that person upon death without probate.
TODIs are a great solution for homeowners in Springfield and across Illinois who want to ensure their property transfers smoothly to their chosen heir without probate.
TODIs apply to:
- Residential properties (1–4 units)
- Condominiums
- Agricultural land (up to 40 acres with a residence)
To be valid, a TODI must:
- Be signed, witnessed, and notarized
- Be recorded with the county recorder before the owner’s death
- Be in the same manner as a will
Because the property passes outside of probate, it does not pass through the estate unless other conditions apply.
Is a TODI Affordable?
TODI can help homeowners both avoid probate and avoid the cost without the long, drawn-out process and expense that you face when setting up a trust. They are much more affordable than setting up a trust or going through probate.
Ackerman Law Offices can help you with a TODI. Give us a call to discuss your situation.
Joint Tenancy with Right of Survivorship
Like TODI, if your asset is held in joint tenancy, it automatically passes to the joint tenant when one owner dies. This applies to:
- Bank accounts
- Real estate
- Investment accounts
These assets are excluded from probate and do not count toward the estate’s value for probate purposes.
Bringing these two ideas together, let’s say your loved one had:
- $80,000 in a checking account with a TOD designation
- A jointly owned home
- $40,000 in personal property passed through a will
Only the $40,000 counts toward the probate threshold. Since it’s under $100,000 and there’s no solely owned real estate, probate can be avoided using a Small Estate Affidavit.
This is just an example; your situation will differ. Contact Jim Ackerman, who can help review your assets and ensure that all your assets are protected.
Plan Ahead & Enjoy Peace of Mind
All these legal tools: TODIs, joint tenancy, and beneficiary designations can make a huge difference for your family when the time comes to settle your estate. Making plans now means that you can ensure your assets pass smoothly to your loved ones — without the delays and costs of probate.
If you’re in Springfield or anywhere in Illinois, call Jim Ackerman, an estate planning attorney, to review your options.