To say that probate — the court process for settling a Will — is no fun is quite an understatement. You can reduce the burden on your family by assigning direct beneficiaries to your assets, which can help avoid this court process. A Transfer on Death Deed (TODD) is a tool you can use to avoid probate on your real estate. Instead of waiting months for a court process, your home or other real estate passes directly to the person you choose.
Understanding how to do a Transfer on Death Deed and when to use one is essential for estate planning in states where it’s available. Here’s what you need to know, plus guidance on how to do a Transfer on Death Deed correctly.
Key Takeaways
- A Transfer on Death Deed (TODD) lets you name a beneficiary to inherit real estate without probate.
- TODDs are only valid in about 30 states.
- The deed doesn’t take effect until death, so it can be revoked anytime while you’re alive.
- Filing requirements vary by state, but the deed typically must be recorded before death to be valid.
- A LegalShield provider lawyer can help draft a TODD correctly to avoid costly mistakes.
What Is a Transfer on Death Deed?
A Transfer on Death Deed is a legal document that allows you to designate a beneficiary to receive your real property — like a house or land — when you die, without going through probate. Think of it as a beneficiary designation for your home, similar to how you name beneficiaries on a life insurance policy or retirement account.
When you die, the property transfers automatically to the named beneficiary. They don’t have to wait for a court process or deal with complicated legal proceedings. They simply record the death certificate and a few other documents, and ownership transfers.
How Does a Transfer on Death Deed Work?
A Transfer on Death Deed names a beneficiary (or multiple beneficiaries) who will inherit your real estate after your death. Unlike a traditional deed, it doesn’t transfer ownership during your lifetime. You keep full control of the property — you can sell it, mortgage it, rent it out, or even revoke the deed entirely while you’re alive.
The deed only takes effect at death. At that point, the beneficiary can claim the property by presenting the death certificate and recording the deed transfer with the county.
What States Allow Transfer on Death Deeds?
TODDs are not available in all states. As of 2025, approximately 30 states and the District of Columbia permit them. States that currently recognize Transfer on Death Deeds include:
- Alaska, Arizona, Arkansas
- California, Colorado, Connecticut
- District of Columbia
- Hawaii
- Illinois, Indiana
- Kansas
- Maine, Minnesota, Missouri, Montana
- Nebraska, Nevada, New Mexico
- North Dakota
- Ohio, Oklahoma, Oregon
- South Dakota
- Texas, Utah
- Virginia
- Washington, West Virginia, Wisconsin, Wyoming
States that do not allow TODDs include Florida, Georgia, Louisiana, New York, and others. If you’re in a state that doesn’t allow TODDs, a LegalShield attorney can discuss alternative strategies such as a living trust or joint tenancy with right of survivorship.
What Are the Requirements for a Transfer on Death Deed?
The exact requirements vary by state, but in general a valid TODD must:
- Be in writing and clearly identify the property and the beneficiary
- Be signed by the property owner (grantor) while they are alive and competent
- Be notarized (required in most states)
- Be recorded with the county recorder or register of deeds before the owner’s death
Failing to record the deed before death typically makes it invalid. This is one of the most common — and costly — mistakes people make with TODDs.
Benefits of a Transfer on Death Deed
A Transfer on Death Deed offers several advantages:
- Avoids probate: Property passes directly to the beneficiary without court involvement.
- Maintains control: You can revoke or change the beneficiary at any time.
- Low cost: Generally less expensive to create than a trust.
- Simplicity: Easier to set up than joint tenancy, which transfers ownership immediately.
- No gift tax: Because you retain ownership during your lifetime, there’s no gift tax implication.
Drawbacks of a Transfer on Death Deed
TODDs aren’t a perfect solution for everyone:
- Limited availability: Only valid in about 30 states.
- No protection from creditors: The property may be subject to your estate’s debts after death.
- No planning for incapacity: TODDs only work at death, not during a period of incapacity.
- Can be complicated by beneficiary issues: If the beneficiary dies before you do and you haven’t updated the deed, the property may go through probate.
- May affect Medicaid planning: In some states, a TODD could impact Medicaid recovery after death.
How to Do a Transfer on Death Deed
Here’s a general overview of the process:
- Check your state’s laws: Confirm that TODDs are allowed in your state and review any specific requirements.
- Draft the deed: The deed must contain specific legal language identifying the property and beneficiary. A LegalShield provider lawyer can draft this for you to ensure it meets your state’s requirements.
- Sign and notarize: Sign the deed in front of a notary public.
- Record the deed: File the deed with the county recorder’s office or register of deeds in the county where the property is located. There is usually a small recording fee.
That’s it — the deed takes effect at death without any additional steps required from you.
Can a Transfer on Death Deed Be Revoked?
Yes. One of the key advantages of a TODD is that it’s fully revocable during your lifetime. You can revoke it by:
- Recording a revocation form with the county
- Creating and recording a new TODD (which automatically revokes the prior one in most states)
- Selling the property (which removes it from the TODD’s scope)
Simply tearing up the deed or telling your beneficiary you changed your mind does not revoke a recorded TODD. You must take formal legal steps to revoke it.
Frequently Asked Questions
Is a Transfer on Death Deed better than a will for real estate?
A TODD can be more efficient than a will for transferring real estate because it avoids probate. However, a will covers all your assets, not just real estate, so the two tools serve different purposes and can complement each other.
What happens if the beneficiary named in a Transfer on Death Deed dies before the property owner?
This depends on state law and whether you named a contingent (backup) beneficiary. In many cases, if the primary beneficiary dies first and no contingent is named, the property may pass through probate as part of your estate. Naming a contingent beneficiary is a smart precaution.
Can I name multiple beneficiaries on a Transfer on Death Deed?
Yes, most states allow you to name multiple beneficiaries. The property would pass to them as co-owners (typically as tenants in common). This can create complications if the co-owners disagree about the property, so consult a lawyer before naming multiple beneficiaries.
Does a Transfer on Death Deed affect my property taxes or homestead exemption?
No — creating a TODD does not affect your property taxes, homestead exemption, or other ownership rights during your lifetime. It only affects what happens after your death.
Get Help With Your Transfer on Death Deed
A Transfer on Death Deed can be a simple and cost-effective tool for keeping your home out of probate — but only if it’s done correctly. One missed step, like failing to record the deed, can invalidate the whole thing.
A LegalShield provider lawyer can draft a TODD that meets your state’s specific requirements, help you name appropriate beneficiaries, and make sure the deed is properly executed and recorded. Get the peace of mind that comes from knowing your estate plan is in order. Contact a LegalShield independent associate for membership details or to enroll.
Sources
- Uniform Law Commission. (2023). Uniform Real Property Transfer on Death Act. https://www.uniformlaws.org/committees/community-home?CommunityKey=a0a16e18-6a8e-4711-be05-c2b4f9e50ea8
- Texas Legislature Online. (2015). Estates Code, Chapter 114. https://guides.sll.texas.gov/wills-and-directives/transfer-property-after-death
- TexasLawHelp.org. (2026). Transfer on Death Deeds (TODDs). https://texaslawhelp.org/article/transfer-on-death-deeds-todds
LegalShield is a trademark of Pre-Paid Legal Services, Inc. (“LegalShield”). LegalShield provides this blog as a public service and for general information only. The information made available in this blog is meant to provide general information and is not intended to provide legal advice, render an opinion, or provide a recommendation as to a specific matter. The blog post is not a substitute for competent legal counsel from a licensed professional lawyer in the state or province where your legal issues exist, and you should seek legal counsel for your specific legal matter. All information by authors is accepted in good faith. However, LegalShield makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information. The materials contained herein are not regularly updated and may not reflect the most current legal information. No person should either act or refrain from acting on the basis of anything contained on this website. Nothing on this blog is meant to, or does, create an attorney-client relationship with any reader or user. An attorney-client relationship may be formed only after the execution of an engagement letter with an attorney and after that attorney has confirmed that no conflicts of interest exist. Nothing on this website, or information contained or transmitted by this website, is intended to be an advertisement or solicitation. Information contained in the blog may be provided by authors who could be a third-party paid contributor. LegalShield provides access to legal services offered by a network of provider law firms to LegalShield members through membership-based participation. LegalShield is not a law firm, and its officers, employees or sales associates do not directly or indirectly provide legal services, representation, or advice.