What Is a Transfer-on-Death Deed?

A Transfer on Death (TOD) deed — also called a beneficiary deed, TODD, or revocable transfer on death deed — is one of the simplest and most effective ways to transfer real estate outside of probate. If you own property in a state that allows TOD deeds, this tool is worth understanding both for estate planning purposes and for handling an estate where one was used.

What Is a Transfer on Death Deed?

A TOD deed works similarly to a payable-on-death designation on a bank account — it names a beneficiary who will automatically receive the property at the owner's death, without probate. Key features:

• The property owner records the deed during their lifetime, naming one or more beneficiaries
• The owner retains complete control of the property during their lifetime — they can sell it, mortgage it, or revoke the TOD deed at any time
• The named beneficiary has no rights to the property until the owner dies
• At death, the beneficiary records a simple document (typically an affidavit) along with the death certificate to take clear title — no probate court involvement required

States That Allow TOD Deeds

TOD deeds are authorized by statute in approximately 30 US states:

Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Illinois, Indiana, Kansas, Maine, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.

States that do NOT authorize TOD deeds currently include: Connecticut, Delaware, Florida (uses Lady Bird deeds instead), Georgia, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, New York, Rhode Island, South Carolina, Tennessee, and Vermont. (Check current status — laws change.)

How the Transfer Works After Death

If you've inherited property through a TOD deed:

1. Obtain certified copies of the death certificate
2. Prepare an Affidavit of Death (or similar document required by your state) confirming the owner's death and your entitlement as the named beneficiary
3. Record the affidavit and death certificate with the county recorder (or register of deeds) in the county where the property is located
4. Obtain a new title insurance policy — advisable, as the title company will confirm there are no liens or issues with the transfer

Once recorded, you hold clear title to the property. The entire process can typically be completed in a few weeks — far faster than probate.

Limitations of TOD Deeds

• Not all states allow them — check your state first
• Doesn't protect against creditors during the owner's lifetime — the property can still be reached by the owner's creditors. In some states, the deceased's creditors can also reach the property after death if the estate is insolvent, though this varies.
• Can create complications if beneficiary predeceases the owner — if the named beneficiary dies before the owner and the deed isn't updated, the beneficiary designation may lapse and the property reverts to probate. Most state TOD statutes provide rules for this scenario.
• Doesn't help if the beneficiary disclaims — if the beneficiary doesn't want the property (e.g., due to property taxes or a mortgage), they'll need to formally disclaim
• Property tax reassessment — in some states (notably California under Prop 19), inheriting a home through a TOD deed may trigger property tax reassessment if it's not going to the surviving spouse and not used as the heir's primary residence

Lady Bird Deeds (Enhanced Life Estate Deeds)

Some states (Florida, Michigan, Texas, Vermont, West Virginia) allow a variation called a "Lady Bird deed" or enhanced life estate deed. This works similarly to a TOD deed — the owner retains control and the beneficiary receives the property at death without probate. This is a common tool in Florida estate planning.

TOD Deeds vs. Living Trusts

Both TOD deeds and living trusts avoid probate for real estate. TOD deeds are simpler and less expensive to set up. Living trusts provide additional benefits — they can hold multiple assets, provide for incapacity, offer more flexibility with complex distributions, and work across states without requiring additional deeds for each state's property.

For the complete property and assets guide, see our property and assets guide. For how to transfer real estate through probate, see our article on transferring real estate after a death.