Families may soon have another tool in their estate planning processes, with the ability to utilize TODI’s (Transfer on Death Instrument). State Senator Jason Barickman (R-Bloomington) has advanced legislation expanding the potential use of the instrument.
“A TODI is an important tool for simplifying the process of passing on properties after death,” said Barickman. “This legislation will help reduce the hassles and costs associated with passing on property.”
A TODI allows for ownership of property to transfer upon the death of the owner. Under current Illinois law, the use of a TODI is only allowed for residential real estate including at least one residential dwelling. The property cannot contain more than 4 dwellings or more than 40 acres of farm ground.
Barickman’s legislation, Senate Bill 47, expands the use of the TODI for all real estate. The bill was inspired by a constituent who thought it would be a good idea to expand the use of the instrument to farms.
“As someone who was raised on a family farm, I understand the importance that succession plans can have on the ability of our family farms to survive from one generation to the next,” said Barickman. “The use of the TODI system could be a huge help to our farmers to manage the transfer of farm ground between generations.”
The legislation recently passed the Senate Judiciary Committee and is now awaits consideration by the full chamber.