Transfer on Death Deed

See how a transfer on death deed works and whether it fits your estate plan.

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Quick answer

A transfer on death (TOD) deed lets you name a beneficiary to automatically inherit your real estate when you die, bypassing probate. You keep full ownership and control while alive, and the deed can be revoked anytime. TOD deeds are available in many but not all states.

A transfer on death deed is a simple, low-cost way for many seniors to pass a home to loved ones without probate.

How does a transfer on death deed work?

A transfer on death deed, sometimes called a beneficiary deed, names who will receive your real estate when you die. You sign and record the deed with your county recorder while you're alive, but it has no effect until your death. Until then, you keep full ownership: you can sell the property, refinance it, or revoke the deed entirely. When you pass away, the named beneficiary typically records your death certificate to claim the property — no probate court required. Because you retain control during life, a TOD deed is more flexible than adding someone to your title or gifting the home outright.

What are the pros and cons of a TOD deed?

The main advantage is avoiding probate for your home, often the largest asset in an estate, while keeping the deed inexpensive and revocable. It also doesn't affect your property taxes or your control while living. However, TOD deeds have limits: not every state allows them, they only cover real estate (not bank or investment accounts), and they can create complications if a named beneficiary dies first or if there are multiple heirs. A TOD deed also doesn't help with incapacity planning. For complex estates, a revocable living trust may offer more complete protection.

Make sure your plan fits your coverage

A transfer on death deed is one tool among several for passing assets smoothly. The team at 1-800-MEDIGAP helps seniors see the big picture, including how estate decisions connect with Medicare and long-term care. Call 1-800-MEDIGAP (1-800-633-4427) for free, no-pressure guidance.

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Frequently asked questions

Does a transfer on death deed avoid probate?+

Yes. A properly recorded transfer on death deed lets your real estate pass directly to your named beneficiary at death without going through probate. This can save time and money and keep the transfer private. However, it only covers the specific property named in the deed, not your other assets.

Can I revoke a transfer on death deed?+

Yes. As long as you're alive and competent, you can revoke a transfer on death deed at any time by recording a revocation or a new deed. You retain full ownership and control of the property while living, including the right to sell it, which automatically cancels the beneficiary designation.

Are transfer on death deeds available in every state?+

No. Transfer on death deeds (also called beneficiary deeds) are allowed in many states but not all. The rules and forms vary by state. Check your state's laws or consult a local attorney before relying on a TOD deed, since an invalid deed could force the property into probate anyway.

Does a TOD deed affect Medicaid eligibility?+

It can. Because you keep ownership while alive, the home generally still counts under Medicaid rules, and Medicaid estate recovery may apply after death in some states. TOD deeds interact with Medicaid in complex ways, so consult an elder law attorney before using one if Medicaid long-term care is a concern.

Is a transfer on death deed better than a living trust?+

It depends on your situation. A TOD deed is simpler and cheaper but only covers one property and doesn't address incapacity. A revocable living trust costs more to set up but can hold many assets, manage incapacity, and provide broader control. Larger or more complex estates often benefit from a trust.

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