Transfer on death deed vs living trust
Both avoid probate and both are revocable. The trust does far more and costs far more. For a single house going to a single beneficiary, the $69 deed does the same job as the $2,000 trust.
| TOD deed | Living trust | |
|---|---|---|
| Cost | $69 + recording fee | $1,000–$3,000 |
| Covers | One property | Everything you fund into it |
| Handles incapacity | No | Yes |
| Privacy | Public record | Private |
| Multi-state property | One deed per state | One trust covers all |
| Control over timing | None (outright at death | Full) staged distributions, conditions |
| Ongoing work | None | Must be funded and maintained |
| Where available | 32 states + DC | Everywhere |
The trust's real advantages
- Incapacity. A successor trustee steps in without a court. This is the argument that actually matters and the one people most often overlook.
- Multi-state property. A house in two states means two probates without a trust.
- Control. You can say a beneficiary receives income at 25 and principal at 35, or that a share is held for someone with a disability. A deed transfers outright, immediately, with no conditions.
- Privacy. A recorded TOD deed tells anyone who searches the record who inherits your house. A trust does not.
- One place for everything. No hunting for beneficiary designations across a dozen institutions.
The TOD deed's real advantages
- Cost. $69 versus $1,000–$3,000.
- Simplicity. One document, one recording, done in an afternoon.
- Nothing to maintain. A trust that is never funded is worthless, and unfunded trusts are extremely common. A recorded deed cannot be forgotten.
- No change to how you live. You still own the property in your own name, so refinancing and insurance are unaffected.
The pragmatic middle
A TOD deed on the house, payable-on-death designations on the bank accounts, beneficiary designations on retirement and insurance, a durable power of attorney for incapacity, and a simple will as backstop. That combination covers most of what a trust does, for a few hundred dollars.
$69, and we tell you plainly when a trust is the better answer.
Common questions
For moving one property at death, yes. It does exactly the same job for a fraction of the cost. For incapacity, multi-state property, controlled distributions, or privacy, it is not comparable.
Yes. Naming your trust as the beneficiary of the TOD deed is a recognized technique. It routes the property into the trust at death without deeding it there now, which can be useful if a lender is difficult about trust ownership.
The deed wins for that property. It passes outside probate, so the will never touches it. If the two documents name different people, that is a conflict worth fixing now rather than leaving for your family to argue about.
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Deedly is not a law firm
We provide self-help software and state-specific statutory forms; you make your own decisions about your property. Using Deedly does not create an attorney-client relationship, and nothing here is legal advice. If your situation is complex or contested, talk to a licensed attorney in your state.