In Pennsylvania and throughout the country, it is possible to create a deed to a house and have it recorded at a later date. This may be a technique that is helpful for estate planning purposes. However, there could also be problems with this type of strategy. For instance, there is a chance that the deed is lost, misplaced or thrown away.
Individuals who are on an unrecorded deed do not legally own the property. Instead, it is the grantor who owns it until the deed is officially recorded. In the meantime, there could be a lien placed on the home by a lender or by other creditors looking to collect from the owner. If the title to the home isn't free and clear of liens, it may be more challenging to record the new deed and transfer ownership. One final issue to consider is that the home may be transferred to another person when the current owner dies.
Instead of waiting to record a new deed until a later date, it may be best to simply to use a transfer on death deed. This allows the home to go to a family member or other designated person when the current owner dies. It gives the current owner more control over how the property is used today while avoiding probate.
Creating wills and trusts may make it easier to create an estate plan that adheres to a person's last wishes. For instance, the home may go into a trust that has a child or charity named as the beneficiary. The use of beneficiary designations or special deeds may also help a person transfer property in a timely manner.