Transfer on Death Deed: How to Pass Real Estate Without Probate

For many people, real estate is their largest asset — and getting it to the next generation without the cost and delay of probate is a primary estate planning goal. A transfer on death deed accomplishes this simply and affordably, without giving up control during your lifetime.

How a Transfer on Death Deed Works

The concept is similar to a payable-on-death (POD) designation on a bank account, but applied to real estate. You record a deed that:

Names one or more beneficiaries who will receive the property at your death
Takes effect only at death — you remain the full owner during your lifetime
Can be revoked or changed at any time while you're alive and competent
Transfers the property directly to the beneficiary without probate

At death, the beneficiary records an affidavit of survivorship along with your death certificate, and the property transfers to them on the county records — typically within weeks, with no court proceedings.

Advantages

Probate avoidance. The single biggest advantage. Probate for real estate can take months to over a year and cost thousands of dollars in attorney and court fees. A TODD bypasses all of that.
Retained control. Unlike putting property in an irrevocable trust or adding someone to the deed as a joint owner, a TODD doesn't transfer anything during your lifetime. You can sell the property, refinance it, or change or revoke the beneficiary designation at any time.
Simplicity and cost. A TODD is typically far less expensive to prepare than a living trust and achieves a similar outcome for a single piece of real estate.
Step-up in cost basis. Property transferred via TODD receives a stepped-up cost basis at death (the same as property transferred through probate or a living trust). This can significantly reduce capital gains taxes if the beneficiary later sells.

Limitations

Available in only ~30 states. If your state doesn't recognize transfer on death deeds, this option isn't available to you.
Doesn't cover all estate planning needs. A TODD only covers specific real estate. You still need a will for other assets, and you may still need powers of attorney and healthcare directives.
Beneficiary must survive you. If the named beneficiary predeceases you and you haven't named an alternate or updated the deed, the property may go through probate anyway. Name contingent beneficiaries.
Medicaid complications. In some states, property transferred via TODD may still be subject to Medicaid estate recovery claims after death. If long-term care planning is a concern, consult an elder law attorney.
Multiple beneficiaries can create complications. If you name multiple beneficiaries (e.g., three children), they become co-owners at your death — which can create practical difficulties if they can't agree on what to do with the property.

Transfer on Death Deed vs. Living Trust for Real Estate

Feature	TODD	Living Trust
Avoids probate	Yes	Yes
Retained control during life	Yes	Yes
Covers multiple assets	No (one property per deed)	Yes
Works for out-of-state property	Only where recognized	Usually yes
Incapacity planning	No	Yes (successor trustee)
Typical cost	$100–$500	$1,000–$3,000+

For a single property in a state that recognizes TODDs, a transfer on death deed is often the simplest and most cost-effective approach. For complex estates, multiple properties, or states without TODD laws, a living trust may be more appropriate.

How to Create a Transfer on Death Deed

Confirm your state recognizes TODDs and understand its specific requirements
Prepare the deed using your state's required form or with an attorney's help
Name your primary beneficiary and at least one contingent beneficiary
Sign the deed (notarization is typically required)
Record the deed with your county recorder or register of deeds while you're alive — an unrecorded TODD has no legal effect

Related Guides

Frequently Asked Questions

What is a transfer on death deed and how does it work?

A transfer on death deed (TODD) — also called a beneficiary deed in some states — is a real estate deed that names one or more beneficiaries to receive the property automatically at the owner's death, without probate. During your lifetime, nothing changes: you own the property, can sell it, refinance it, or change your mind about the beneficiary at any time. At your death, the named beneficiary files a simple form with the county recorder, presents your death certificate, and the property transfers to them — typically within weeks, without court involvement, and with no attorney fees beyond what it cost to prepare the deed in the first place.

Does a transfer on death deed avoid estate taxes?

No — a transfer on death deed avoids probate, but it does not remove the property from your taxable estate. The property is still included in your gross estate for federal estate tax purposes. For the vast majority of Americans (whose estates are below the federal exemption threshold — $13.61 million per individual in 2024), this doesn't matter. But if estate taxes are a concern, a transfer on death deed alone is not sufficient; you'd need to work with an estate planning attorney on strategies that actually transfer ownership during your lifetime or use irrevocable trust structures.

Which states allow transfer on death deeds?

As of 2024, approximately 30 states have enacted transfer on death deed legislation, including: Alaska, Arizona, Arkansas, California, Colorado, 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, and Wyoming. Some states have enacted the Uniform Real Property Transfer on Death Act; others have their own versions with specific rules. States that do not recognize transfer on death deeds include: Florida, Georgia, Louisiana, New York, Massachusetts, and others. Always verify current law in your specific state, as legislation continues to change, and work with a local real estate attorney to prepare the deed correctly.