When you start planning your estate in Illinois, one of the first decisions you’ll face is how you want your home and real estate to transfer after you’re gone. For many families, that decision comes down to two common tools:

• The Illinois Transfer on Death Instrument (TODI)

• A Revocable Living Trust

Both options can help your loved ones avoid probate, but they work very differently. Choosing the right one depends on your goals, your family dynamics, and how much flexibility you want in your plan.

This guide breaks it down in plain English so you can choose the option that fits your life.

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⭐ What Is a TODI? (Transfer on Death Instrument)

A Transfer on Death Instrument, or TODI, is an Illinois legal document that lets you name who will receive your home without going through probate. You keep full control of the property while you’re alive — you can sell it, refinance it, or revoke the TODI at any time.

How a TODI Works

• Your beneficiary doesn’t inherit until you pass away.

• The TODI must be recorded with the county before death.

• The beneficiary signs an acceptance after your death.

✔️ Pros of a TODI

• Simple and inexpensive to create

• Avoids probate for that specific property

• You keep full ownership and control while living

• Great option for people with simple estates

✖️ Cons of a TODI

• Only covers real estate — not bank accounts, vehicles, or personal property

• All beneficiaries receive the property outright, which may not be ideal for minors or blended families

• No built-in protection if you become incapacitated

• Cannot hold conditions (e.g., “my child must be 25 before receiving the home”)

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⭐ What Is a Revocable Living Trust?

A Revocable Living Trust is a more comprehensive estate planning tool. You transfer ownership of your home (and other assets) into the trust while you’re alive, but you remain in full control as the trustee.

At death, the successor trustee distributes the property according to your instructions — without probate.

✔️ Pros of a Revocable Living Trust

• Avoids probate for all assets titled into the trust

• Allows detailed instructions, including:

  • Age-based distributions

  • Staggered inheritances

  • Protection for children with disabilities

  • Rules for blended families

• Provides incapacity protection (your successor trustee can manage things if you become ill)

• Can hold real estate in multiple states

• Can reduce family disputes by laying out a clear plan

✖️ Cons of a Revocable Living Trust

• More work up front: assets must be properly titled into the trust

• Possible higher cost than a TODI

• Requires ongoing maintenance

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TODI vs. Living Trust: Which Should You Choose?

Here’s a side-by-side comparison:

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When a TODI Is a Great Fit

A TODI works well if you:

• Have a simple estate

• Only want to avoid probate for one property

• Want something inexpensive and straightforward

• Have adult beneficiaries who don’t need protection or oversight

Many Illinois homeowners choose a TODI when they simply want their home to pass smoothly to their spouse or adult child.

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When a Revocable Living Trust Is the Better Choice

A Trust is the stronger option if you:

• Have minor children or children with special needs

• Own multiple assets (bank accounts, vehicles, real estate, etc.)

• Have a blended family

• Want to protect a child from irresponsible spending

• Want everything handled privately outside of court

• Want a clear plan if you become incapacitated

If your estate is more than just a house, or if your family situation is complex, a trust gives you far more control and protection.

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The Bottom Line

A TODI is a wonderful tool for simple real estate transfers.
A Revocable Living Trust is the better solution when you want a complete, flexible, and family-friendly estate plan.

Most families benefit from talking with an estate planning attorney to decide which option fits their goals — or whether a combination of both may work best.

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Need Help Choosing Between a TODI and a Trust?

If you’re unsure which option is right for your family, you’re not alone. We help Illinois families make this decision every day.

If you have questions about your estate plan or a probate matter, contact the Law Office of Jonathan W. Cole P.C. at (708) 529-7794 — “Your Neighborhood Law Firm.”

📞 (708) 529-7794 | Law Office of Jonathan W. Cole P.C. — “Your Neighborhood Law Firm.”