For homeowners, a transfer on death deed can be one of the simplest ways to keep real estate out of probate. It is also easy to misunderstand. It has to be allowed in your state, written correctly, and recorded before death.

Quick answer
A TOD deed is a beneficiary form for real estate.

A transfer on death deed names who receives real estate when the owner dies. The owner keeps control during life. The beneficiary receives the property at death, usually without probate for that property.

  • It must be recorded before death.
  • It does not give the beneficiary current ownership.
  • It does not erase mortgages, liens, taxes, or Medicaid recovery issues.

What Is a Transfer on Death Deed?

A transfer on death deed, or TOD deed, is a deed recorded during the owner's lifetime that names a beneficiary for real estate. In some states it is called a beneficiary deed, deed on death, or revocable transfer on death deed.

The beneficiary does not own the property while the owner is alive. The owner can usually sell the property, refinance it, revoke the deed, or name a different beneficiary. The transfer happens only after death.

That is what makes TOD deeds different from adding someone to the deed as a co-owner. A TOD beneficiary is not a current owner. A co-owner usually is.

Which States Allow Transfer on Death Deeds?

Many states allow some form of transfer on death deed or beneficiary deed, often based on the Uniform Real Property Transfer on Death Act. The list has been expanding, with several states adopting or considering versions of the law in recent years.

Because deed law changes and county recording offices can have specific form requirements, treat any state list as a starting point, not final legal advice. Before relying on a TOD deed, check your state statute, your county recorder, or a local estate planning attorney.

Practical rule: If your state guide says TOD deeds are recognized, still verify the current form and recording requirements before signing. A deed that is signed but not properly recorded may not work.

States that commonly recognize TOD or beneficiary deeds include many western, midwestern, and Uniform Act states, such as Arizona, Arkansas, California, Colorado, Hawaii, Illinois, Indiana, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, Oregon, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and others. Some states use narrower or newer rules, and some states have pending or recently enacted legislation. Always verify locally.

How a TOD Deed Works

  1. The owner prepares the deed. It must identify the property, the owner, and the beneficiary.
  2. The owner signs with required formalities. Most states require notarization; some require witnesses or statutory language.
  3. The deed is recorded before death. Recording is essential. Keeping it in a drawer is usually not enough.
  4. The owner remains in control. The beneficiary has no current right to live there, sell it, or stop a sale.
  5. After death, the beneficiary records proof. The beneficiary may need a death certificate and state-specific affidavit or form.

What Happens to the Mortgage, Taxes, and Liens?

A TOD deed transfers ownership. It does not make debts disappear. If the property has a mortgage, the beneficiary receives the property subject to that mortgage. They may need to keep payments current, sell, refinance, or work with the lender.

A TOD deed also does not wipe out property taxes, judgment liens, HOA liens, or Medicaid estate recovery rights where those apply. The beneficiary should check the title and debt picture before assuming the property is "free and clear."

For federal tax purposes, inherited property often receives a basis adjustment at death, but state taxes and individual facts matter. Ask a tax professional before selling inherited real estate.

When a TOD Deed Can Create Problems

  • Multiple beneficiaries disagree. Co-owning inherited property can be hard if one person wants to sell and another does not.
  • A beneficiary is a minor. A court-appointed guardian or conservator may still be needed.
  • The deed conflicts with a trust or divorce order. Conflicting documents can create litigation.
  • The form is not recorded correctly. This can defeat the whole plan.
  • The owner needs Medicaid planning. Recovery rules vary by state and can affect whether the property is truly protected from claims.

For a simple owner, a single adult beneficiary, and a state-approved form, a TOD deed can be very useful. For blended families, minors, disabled beneficiaries, business property, or high-conflict families, a trust may be safer.

What Beneficiaries Do After Death

After the owner dies, the beneficiary usually records a death certificate and any required state affidavit with the county land records office. They should also notify the mortgage company, insurance company, HOA, and property tax office.

If the property was the only asset that would have required probate, a valid TOD deed may avoid opening a probate case. If there are other probate assets, the estate may still need probate for those assets.

For broader property-transfer steps, see How to Transfer Property After Death.

Reviewed June 2026
Sources and review notes

TOD deed rules are state-specific and continue to change. This guide uses national model-law sources and should be checked against current state statutes and county recorder rules before use.