A transfer-on-death deed lets you name someone to inherit your home or land the moment you die, without that property ever passing through probate court. You keep full control while you are alive: you can still sell it, refinance it, or change your mind entirely.
Here, we cover what states actually allow this deed, how to fill one out correctly so it holds up later, what it does and does not protect against, and how it compares to a will, a living trust, and a payable-on-death account.
What Is a Transfer on Death Deed?
A transfer-on-death deed, also called a beneficiary deed in some states, is a deed that names a beneficiary to receive real property automatically upon the current owner's death. Unlike a regular deed, it does not transfer any ownership interest during the owner's lifetime. The beneficiary has no legal claim to the property, cannot be forced to pay its expenses, and cannot block a sale, right up until the moment the owner dies.
What a Transfer on Death Deed Does Not Do
It does not avoid Medicaid estate recovery in most states. Because you still legally own the property until death, many state Medicaid programs can still file a claim against it afterward to recover long-term care costs, even though the deed itself skipped probate.
It does not remove liens or mortgages. Your beneficiary inherits the property subject to whatever debt is still attached to it, including any existing mortgage.
It does not protect the property from your creditors while you are alive, and, depending on the state, creditors may still be able to reach it for a period after your death.
It does not replace a will or a revocable living trust. It only covers the specific property named in the deed. Everything else you own—bank accounts, vehicles, personal belongings—still needs a will, trust, or other plan to avoid probate.
Which States Allow a Transfer on Death Deed?
Roughly 30 states plus the District of Columbia currently allow transfer-on-death deeds for real estate, and Nolo's overview of TOD deeds is a reliable place to confirm whether your specific state is one of them, since new states continue to adopt the option. A handful of states that do not offer a TOD deed, including Florida, Michigan, and Vermont, allow a similar tool called a lady bird deed (enhanced life estate deed) that achieves much the same result. Always confirm your state's current rule before relying on either option.
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How Does a Transfer on Death Deed Work?
The deed is signed and notarized like any other deed, but it includes specific language stating that the transfer only takes effect at the owner's death, and it must be recorded with the county before the owner dies to be valid. Missing that recording step is the single most common reason a TOD deed fails.
California's rule comes from Probate Code Section 5642, which requires the deed to be recorded within 60 days of being signed and notarized, or it becomes ineffective. Texas has no equivalent 60-day rule, but Texas Estates Code Section 114.055 still requires the deed to contain a specific statutory notice and to be recorded before the owner dies, and missing either requirement can invalidate the whole deed.
How to Get a Transfer on Death Deed
- Confirm your state allows it: Check the current list of TOD deed states before drafting anything, since the rules and the required form language differ by state.
- Name your beneficiary clearly: Use full legal names, and name a backup (contingent) beneficiary in case your first choice does not survive you.
- Sign in front of a notary: Nearly every state requires notarization, and some also require witnesses.
- Record it with the county: File the deed with the county recorder or register of deeds where the property is located, before the owner's death and within any state-specific deadline.
- Keep a copy with your estate documents: Store it alongside your will so your executor and beneficiary both know it exists.
Revoking or Changing a Transfer on Death Deed
A TOD deed is fully revocable for as long as the owner is alive and mentally competent. Revocation typically requires recording a formal revocation document or recording a brand new TOD deed that names a different beneficiary, since simply writing a new will does not cancel a previously recorded deed in most states. Selling the property also automatically ends the deed's effect, since there is nothing left for the beneficiary to inherit.
Transfer on Death Deed vs. Payable on Death Account vs. Living Trust
A transfer-on-death deed and a payable-on-death designation work the same way in principle, naming a beneficiary who inherits automatically outside of probate, but they apply to entirely different types of assets: real estate for one, bank and investment accounts for the other. A living trust is broader still, since it can hold real estate, accounts, and other property all under one document, but it typically costs more to set up and requires actively transferring assets into it. Nolo's comparison of TOD deeds and living trusts is a useful starting point for deciding which tool, or combination of tools, fits your estate.
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Conclusion
A transfer-on-death deed is one of the simplest ways to keep a home out of probate, but it only works if it is completed correctly and recorded before the owner dies. Confirming your state allows it, naming a clear beneficiary, and recording the deed on time are what separate a deed that actually protects your family from one that gets challenged or ignored.
It is not a substitute for a full estate plan. Pairing it with a will, and a living trust if your estate is more complex, gives your beneficiaries the clearest possible path to what you intended to leave them.
Bibliography
[1] Transfer on Death Deed — Cornell Law School, Legal Information Institute. Accessed August 2026.
[2] Beneficiary Deed — Cornell Law School, Legal Information Institute. Accessed August 2026.
[3] California Probate Code Section 5642 — FindLaw. Accessed August 2026.
[4] Texas Estates Code Section 114.055, Requirements — Justia. Accessed August 2026.
[5] Transfer-on-Death Deeds for Real Estate — Nolo. Accessed August 2026.
[6] Transfer-on-Death Deeds vs. Living Trusts — Nolo. Accessed August 2026.
Disclaimer: 360 Legal Forms is not a law firm and does not provide legal advice. This page is for general informational purposes only. Transfer-on-death deed availability and requirements vary by state and change over time. Consult a licensed attorney for advice specific to your estate.
