What Is a Transfer-on-Death (TOD) Deed in Real Estate?

A Transfer-on-Death (TOD) deed—also called a beneficiary deed—allows a property owner to name a beneficiary who will automatically inherit the property when the owner dies. The deed bypasses probate while allowing the owner to keep full control of the property during their lifetime.

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💡 Why a TOD Deed Matters

A TOD deed is one of the simplest real estate estate-planning tools. It transfers a property to a beneficiary automatically at death—without probate, attorneys, or court hearings—while allowing the owner to keep full control during their lifetime.

  • ✔ Avoids probate completely
  • ✔ Owner can revoke or change the deed anytime
  • ✔ Beneficiary receives property instantly upon death
  • ✔ Owner keeps full rights to sell, refinance, or mortgage
  • ✔ No need for a trust or will to transfer real estate
  • ✔ Helps prevent family disputes over inheritance

Related: What Is a Life Estate Deed?

📌 Common Reasons to Use a TOD Deed

Property owners use Transfer-on-Death deeds for several estate and family-planning reasons:

  • To avoid probate and speed up transfer to heirs
  • To pass property to children without creating joint ownership
  • To simplify estate planning without a trust
  • To name backup beneficiaries in case a primary beneficiary passes
  • To retain full control of the home while alive
  • To prevent disputes among heirs over who receives the property

Related: What Is an Interspousal Transfer Deed?

🔎 How a Transfer-on-Death (TOD) Deed Works

A TOD deed only takes effect when the owner dies. Until then, the owner has full control and may revoke or replace beneficiaries at any time.

  • 1. Owner completes and signs a TOD deed naming one or more beneficiaries.
  • 2. The deed is notarized and filed with the county recorder.
  • 3. The owner keeps full rights to sell, refinance, or change beneficiaries.
  • 4. At the owner's death, the property automatically transfers to the named beneficiary.
  • 5. Beneficiary records an affidavit and death certificate to complete the transfer.
  • 6. No probate court involvement is required.

If title becomes disputed, a Quiet Title Action may be needed.

❗ FSBO Warning: TOD Deeds Aren’t Valid in Every State

TOD deeds are legal in many—but not all—states. Some states use “Beneficiary Deeds,” while others require different transfer methods. Always confirm state laws before recording one.

  • Not recognized in some states
  • May conflict with HOA or mortgage rules
  • Does not transfer property until death
  • Does not avoid creditors or liens

Related: What Is Title Insurance?

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