Sec. 60. Effect of transfer on death instrument during owner's life.

238 words·~1 min read·/il/chapter-755/act-27/60

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)During an owner's life, a transfer on death instrument does not:

(1)affect the right or interest of the owner, any other owner, or an agent for the

owner to sell, transfer, or encumber the real property;

(2)affect an interest or right of a transferee, lienholder, mortgagee, or option

holder even if the transferee, lienholder, mortgagee, or option holder has actual or constructive notice of the instrument;

(3)affect an interest or right of a secured or unsecured creditor or future

creditor of the owner, even if the creditor has actual or constructive notice of the instrument;

(4)affect the owner's or designated beneficiary's eligibility for any form of

public assistance;

(5)create a legal or equitable interest in favor of the designated beneficiary; or

(6)subject the real property to claims or process of a creditor of the designated

beneficiary.

(b)If after recording a transfer on death instrument, the owner makes a contract for the sale or transfer of the real property or some part thereof that is the subject of the transfer on death instrument and the whole or any part of the contract remains executory at the owner's death, the disposition of the real property by the contract does not revoke the transfer on death instrument but the real property passes to the designated beneficiary or beneficiary subject to the contract.