IL HB5235

Creates the Transfer on Death Deeds Act, allowing property owners to designate beneficiaries to receive real property upon the owner's death through a recorded deed.

Transfer on death deeds become effective only upon the grantor owner's death and must be recorded before that death to be valid; the deed does not transfer property during the owner's lifetime.

Property transferred passes subject to existing mortgages, liens, judgments, and creditor claims, with beneficiaries liable to pay remaining unpaid claims from the deceased owner's estate up to the value of property received.

Allows designation of multiple beneficiaries taking as joint tenants or tenants in common, successor beneficiaries, and includes antilapse provisions so descendants of deceased beneficiaries may inherit in their place.

Deeds may be revoked by recording a revocation instrument before the owner's death; if the owner later conveys the property to a third party by other means, the transfer on death deed becomes ineffective as to that property.