What is a transfer on death deed?
A transfer on death deed is a beneficiary designation for real estate. The same idea as naming a beneficiary on a bank account. You record it now, it transfers nothing until you die, and you can revoke it at any time without anyone's permission.
How it works, mechanically
- You sign and record itThe deed names one or more beneficiaries. It has to be recorded before your death. That is the whole game. Recording one afterwards accomplishes nothing.
- Nothing changesYou still own the property outright. You can sell it, mortgage it, rent it, or revoke the deed. Your beneficiary has no interest, no say, and no right to see it.
- You dieThe property passes automatically to the surviving beneficiaries you named.
- They record proofUsually a certified death certificate plus an affidavit. Title is then theirs, without a probate case.
Where it is available
32 states plus the District of Columbia: Alaska, Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Georgia, Hawaii, Illinois, Indiana, Kansas, Maine, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Different names, same instrument
Arizona, Arkansas, Colorado and Missouri call it a beneficiary deed. Nevada calls it a deed upon death. Illinois calls it a transfer on death instrument. Ohio replaced the deed with a transfer on death designation affidavit in 2009. An Ohio TOD deed signed today is ineffective. Wisconsin uses a TOD designation. Same idea, different paperwork.
Why people choose it over a living trust
| TOD deed | Living trust | |
|---|---|---|
| Typical cost | $69 + recording fee | $1,000–$3,000 |
| Covers | One property | Everything you own |
| Handles incapacity | No | Yes |
| Privacy | Recorded publicly | Private |
| Ongoing admin | None | Must be funded and maintained |
| Revocable | Yes | Yes |
For someone whose main asset is a house and who wants it to go to their children, a TOD deed does most of the work of a trust for a fraction of the cost. Full comparison.
What it does not do
- It does not clear the mortgage. Your beneficiary takes the property subject to every loan, lien, and judgment on it.
- It does not protect from creditors. In most states your estate's creditors can still reach the property for a period after death.
- It does not defeat Medicaid estate recovery in every state. Several states specifically allow recovery against TOD property.
- It does not help if the beneficiary dies first. Name an alternate. This is the single most common drafting failure.
- It does not cover anything but that property. Bank accounts, vehicles, and everything else need their own arrangements.
State-specific traps that void the deed
California voids a TOD deed not recorded within 60 days of notarization. Oklahoma requires the beneficiary to record an acceptance affidavit within nine months of death. Illinois requires two witnesses plus a notary. These are not edge cases. They are the ordinary rules in those states.
$69, with your state's statutory language and its specific timing rules applied.
Common questions
Yes, for the property it names. The property passes outside the probate estate. Everything else you own still goes through your will. More detail.
Yes, at any time while you're alive and competent. Record a revocation, record a new TOD deed naming different beneficiaries, or simply sell the property. Your beneficiary's consent is never required, and in most states they have no right even to be told.
Beneficiary predecease with no named alternate, multiple beneficiaries who then cannot agree on selling, creditor claims against the estate, Medicaid estate recovery, and beneficiaries who lose means-tested benefits by inheriting. The full list.
Yes. They normally take equal shares as tenants in common unless the deed says otherwise. Think about what happens next: co-owners who disagree about whether to sell end up in a partition action, which is exactly the court process you were trying to avoid.
Keep reading
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.