Transfer-on-Death Deed: Pass Real Estate Without Probate

7 min read · Updated June 13, 2026

A transfer-on-death deed — also called a beneficiary deed, TODD, or revocable transfer-on-death deed — is a simple document that names who will receive your real estate when you die. The transfer happens automatically, without probate, and without the property ever being in a trust.

Unlike adding someone to your deed as a joint tenant, a transfer-on-death deed gives you complete control of the property while you are alive. The beneficiary has no present ownership interest, no right to occupy or sell the property, and no say in how you manage it.

How Transfer-on-Death Deeds Work

A TODD works much like a payable-on-death (POD) designation on a bank account:¹

1. You execute the deed naming one or more beneficiaries
2. You record the deed with your county recorder’s office — this is required for the deed to be effective²
3. You continue to own the property completely during your lifetime — you can sell it, mortgage it, rent it, or revoke the deed entirely
4. At your death, the beneficiary records an affidavit of survivorship (along with a certified death certificate) and becomes the owner without any probate proceeding

The property does not go through your estate, and it is not subject to your will. It passes directly and immediately.

Which States Allow Transfer-on-Death Deeds

The Uniform Real Property Transfer on Death Act (URPTODA), drafted by the Uniform Law Commission in 2009, has been adopted in about 30 states.³ States that allow TODDs include:

• Arizona, California, Colorado, Hawaii, Illinois, Indiana, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming

Several states have enacted their own TODD statutes that differ from the uniform act. States that do NOT currently allow TODDs include: Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, South Carolina, Tennessee, and Vermont (laws change — verify your state’s current law).⁴

Advantages of a Transfer-on-Death Deed

Avoids probate for real estate. Probate for a home can take 6 to 18 months and cost 2% to 5% of the property’s value in attorney fees, court costs, and executor compensation.⁵ A TODD eliminates this entirely.

Retains full control. Unlike joint tenancy — where co-owners have immediate equal rights — a TODD beneficiary has no rights whatsoever during your lifetime. You can sell, refinance, or convey the property to someone else, automatically revoking the TODD.⁶

Simple and inexpensive. Most counties charge $10–$50 to record a deed. The deed itself can be prepared by an attorney for a modest fee.

Revocable at any time. You can change your beneficiary, name a new one, or record a revocation deed entirely without the beneficiary’s consent or even their knowledge.

Multiple beneficiaries allowed. You can name more than one beneficiary, specifying each person’s share. You can also designate per stirpes distribution so a beneficiary’s descendants receive their share if the beneficiary predeceases you.

Full step-up in basis. Unlike joint tenancy (where only the deceased co-owner’s share is stepped up), a property transferred via TODD passes entirely outside the owner’s estate for probate purposes and the beneficiary receives a full step-up in basis at the date of death — potentially eliminating substantial capital gains tax on appreciated property.⁷

Disadvantages and Risks

Not available in all states. If you live in a state that does not recognize TODDs, this tool is not an option. Moving to another state may also complicate an existing TODD.

Does not protect against creditors during life. Your creditors can still place liens on the property, attach it to satisfy judgments, or otherwise reach it during your lifetime. A TODD does not create an asset protection structure.

Medicaid clawback risk. In some states, Medicaid may have a claim against the property after your death if you received long-term care benefits.⁸ A TODD does not shield the property from Medicaid estate recovery programs, which vary significantly by state.

Does not fund a trust. A TODD bypasses your trust as well as probate. If you want assets managed by a trustee after your death (for minor children, for example), name the trust as beneficiary rather than an individual.

No provision for beneficiary predeceasing you (unless specified). If your named beneficiary dies before you and you have not named an alternate or specified per stirpes distribution, the deed may lapse and the property could go through probate after all. Always name a contingent beneficiary.

Possible Medicaid ineligibility issues. Some states may treat the execution of a TODD as a transfer of assets for Medicaid eligibility purposes. This varies by state and is an area of evolving law — consult a Medicaid planning attorney if long-term care is a concern.⁹

How to Create a Transfer-on-Death Deed

Requirements vary by state, but the general process is:

1. Draft the deed using your state’s required form or a state-specific template. The deed must include your name as grantor, the legal description of the property (from your current deed), and the name(s) of your beneficiary or beneficiaries
2. Sign in front of a notary — notarization is required in virtually all states that permit TODDs
3. Some states require witnesses in addition to notarization — verify your state’s requirements¹⁰
4. Record the deed at your county recorder’s office before your death — a TODD that is not recorded has no legal effect
5. Store a copy with your other estate planning documents

The beneficiary does not need to sign the deed or even know about it.

Revoking or Amending a Transfer-on-Death Deed

You can revoke a TODD at any time by:¹¹

• Recording a revocation document at the county recorder’s office
• Recording a new TODD that names a different beneficiary (the newer deed controls)
• Selling or conveying the property to someone else — this automatically revokes the TODD for that property

You cannot revoke a TODD by will. If your will says “I revoke my transfer-on-death deed,” that revocation has no legal effect. The TODD must be revoked through a recorded document during your lifetime.¹²

Transfer-on-Death Deeds vs. Alternatives

For most people with a single home in a TODD-friendly state and a straightforward family situation, a TODD is an excellent, low-cost probate-avoidance tool. For complex situations — multiple properties, blended families, special needs beneficiaries, or significant Medicaid concerns — a revocable living trust often provides more flexibility.

References

1. Uniform Real Property Transfer on Death Act (URPTODA) § 5, uniformlaws.org
2. URPTODA § 6, “Execution and recording of transfer on death deed”
3. Uniform Law Commission, “Transfer on Death (Real Property) Act — Legislative Fact Sheet,” uniformlaws.org
4. State law survey; note that laws change — always verify current state law
5. AARP, “How Probate Works,” aarp.org/money/investing/info-2020/what-is-probate.html
6. URPTODA § 8, “Effect of transfer on death deed during transferor’s life”
7. Internal Revenue Code § 1014(a), “Basis of property acquired from a decedent”; URPTODA § 14 (transferee acquires property subject to mortgage and all encumbrances)
8. Medicaid Estate Recovery: 42 U.S.C. § 1396p; state programs vary — see National Academy of Elder Law Attorneys, naela.org
9. National Academy of Elder Law Attorneys, “Medicaid Planning,” naela.org
10. State deed execution requirements: see, e.g., Cal. Prob. Code § 5624 (California); Mo. Ann. Stat. § 461.025 (Missouri)
11. URPTODA § 9, “Revocation by instrument authorized; revocation by act”
12. URPTODA § 9(c), “Revocation by will ineffective”

Related Guides

How to Avoid Probate — 6 Proven Strategies

Learn how to avoid probate and transfer your assets to loved ones faster, with less cost and without court involvement. This guide covers six proven strategies — from living trusts to beneficiary designations — and explains which approach makes sense for your situation.

Read Guide

Digital Assets and Estate Planning: What Happens to Your Online Life

Digital assets estate planning requires deliberate action because online accounts, cryptocurrency, and digital files don't transfer automatically the way physical property does. This guide explains what counts as a digital asset, how to document what you own, and how to give your executor legal access without compromising your security today.

Read Guide

Joint Tenancy With Right of Survivorship Explained

Joint tenancy automatically transfers property to surviving co-owners when one dies — but it comes with tax, control, and creditor risks worth understanding.

Read Guide