Transfer on Death Deed: Pass Your Home Without Probate

The transfer on death deed borrows its logic from the payable-on-death bank account. You record a deed today naming a beneficiary, and the deed simply waits. During your life it conveys nothing: the beneficiary has no ownership, no right to occupy, no interest their creditors can attach, and no say in what you do with the property. You can sell the home and pocket the proceeds, refinance it, rent it, or record a revocation, all without notice to anyone.

At your death, the deed springs to life. Title vests in the named beneficiary automatically, and the beneficiary typically records a death certificate and a short affidavit to complete the public record. No probate case opens for that property, which in many states saves months of delay and thousands of dollars in court and attorney fees.

Because the deed is revocable until death, the law treats it as an incomplete transfer. That single feature drives almost every planning consequence: no gift tax return, no loss of your property tax exemptions, no exposure to the beneficiary's divorces or judgments, and no Medicaid transfer penalty for recording it.

The deed is statutory, so geography decides everything. As of early 2026, 33 states plus the District of Columbia authorize some form of TOD deed, a majority of them by adopting the Uniform Real Property Transfer on Death Act (URPTODA), first published in 2009. New York joined with its own version effective July 2024, Georgia and New Hampshire followed in 2024, and Idaho's uniform act takes effect July 1, 2026.

States with a transfer on death deed statute (early 2026): Alaska, Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Georgia, Hawaii, Illinois, Indiana, Kansas, Maine, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. Tennessee, Pennsylvania, Iowa, and several other states had uniform-act bills pending in 2025 but no statute at the time of writing; Kentucky's status has been reported both ways, so confirm with the county clerk before relying on one there.

The notable holdout is Florida, which has no TOD deed statute; Florida homeowners accomplish the same result through Florida's lady bird deed alternative, an enhanced life estate deed recognized there by long practice. Texas recognizes both instruments, which gives Texas homeowners a genuine choice (Michigan, by contrast, has no TOD deed statute and relies on the lady bird deed alone); the trade-offs are mapped in our side by side lady bird deed vs transfer on death deed guide.

The name changes at state lines too. Missouri, which enacted the first such statute in 1989, Arizona (A.R.S. section 33-405), Colorado (C.R.S. section 15-15-401 and following), and Arkansas call the same instrument a beneficiary deed; Ohio uses a transfer on death designation affidavit rather than a deed; other states say revocable transfer on death deed or TOD deed. A search for a beneficiary deed and a search for a transfer on death deed land on the same document with different local formalities.

Statutes also differ on details that matter: whether witnesses are required, how quickly the deed must be recorded, what property types qualify, and how the state's Medicaid agency treats the transfer after death. A deed drafted from a generic national form routinely violates at least one local requirement, which is why the state statute, not the form mill, has to drive the drafting.

Texans get a full guide to drafting a Texas transfer on death deed under Chapter 114; the summary follows. Texas adopted the Texas Real Property Transfer on Death Act, Estates Code Chapter 114, effective September 1, 2015, and it is now one of the highest-volume TOD deed states. The rules are specific. The deed must be signed by the owner personally, not by an agent under a power of attorney, notarized, and recorded before the owner's death in the county where the property sits; an unrecorded TOD deed found in a drawer is void. No witnesses are required, and no consideration or notice to the beneficiary is needed. The legislature repealed the statutory fill-in form in 2019 through House Bill 2782, so Texas deeds are now drafted to the statute's elements rather than copied from a form, which removed the most common source of defective deeds.

After the death, the beneficiary records an affidavit of death with a certified death certificate; the beneficiary must survive the owner by 120 hours, and a beneficiary who predeceases takes nothing unless the deed names an alternate. Creditors, including the Texas Medicaid Estate Recovery Program, may reach the property for up to two years after death under section 114.106 if the probate estate is insufficient, so the deed avoids probate but is not a shield against every claim. Texans who want the retained-power flexibility of a lady bird deed as well have both options, and the choice usually turns on whether the owner expects to sell or refinance during life and on lender attitudes toward each instrument.

On the front end, a TOD deed is Medicaid-neutral. Recording one is not a completed gift, so it neither starts nor violates the five-year look-back period, and a homeowner facing a near-term nursing home admission can still record one without creating a penalty. The home itself usually remains an exempt asset during life anyway, up to the state equity limit.

The back end is where states split. Medicaid estate recovery, the program that bills a deceased recipient's estate for care costs, is federally required to reach the probate estate and optionally more. Property passing by TOD deed avoids probate, but several states have extended their recovery statutes to reach non-probate transfers, and in California the statute makes a TOD beneficiary personally liable for the deceased owner's Medi-Cal recovery claim up to the value received (2025). Other states currently stop at the probate estate, leaving TOD property out of reach.

The honest summary: the deed reliably avoids probate everywhere it exists, and it avoids estate recovery in some states but not others, with the answer year-stamped to current law. Our guide covers which states pursue Medicaid estate recovery beyond probate; for a homeowner in an expanded-recovery state who expects to need Medicaid, an irrevocable structure such as an irrevocable Medicaid asset protection trust instead may be the stronger tool.

Families weighing a TOD deed are usually comparing it against three older habits, and the comparison favors the deed more often than not.

• Against a will: a will guarantees probate for the house; the deed avoids it. And because the deed operates outside the will, it controls the property even if the will says otherwise, which cuts both ways: update both documents together or they will contradict each other.
• Against adding a child to the title: putting a child on the deed as joint tenant is a completed gift of an interest in the house. It can trigger the Medicaid look-back, exposes the home to the child's creditors, divorces, and bankruptcies immediately, requires the child's signature to sell or refinance, and sacrifices part of the step-up in basis. It is the most expensive shortcut in residential estate planning.
• Against deeding the house outright: a full lifetime gift adds carryover basis to all the problems above; the children inherit your original purchase price as their tax basis and can face a six-figure capital gain the deed would have erased.

The deed's genuine rival is a living trust, which costs more but manages every asset, handles incapacity, and controls distributions after death; the decision framework is covered in our guide to choosing between a trust vs will for your estate.

The two documents overlap on exactly one job, passing the house without probate, and diverge on everything else. Start with scope: a TOD deed covers one parcel of real estate. A living trust holds every asset retitled into it, which is why families with a house, brokerage accounts, and a rental usually end up with the trust even if a deed would have handled the house alone.

Cost follows scope. A transfer on death deed typically runs a few hundred dollars to draft and record, including county recording fees that commonly fall between $15 and $100 (2026 market ranges). A funded revocable trust, with the deed transferring the house into it and a pour-over will behind it, commonly costs $1,500 to $3,500 or more from an attorney. Incapacity is the second divergence: a trust names a successor trustee who steps in to manage and sell property if the owner cannot; a TOD deed does nothing during the owner's life, so a durable power of attorney has to carry that load.

Beneficiary design differs too. Most TOD deed statutes allow multiple and contingent beneficiaries, but they hand the property over outright at death, which is a problem for a beneficiary who is a minor, receives means-tested benefits, or has creditor trouble. A trust can hold that share and distribute it on terms. On Medicaid estate recovery, real estate passing by TOD deed remains reachable in most states that pursue non-probate assets, while trust property depends on the trust type: revocable trust assets are reachable, properly drafted irrevocable trust assets generally are not.

After death, title companies sometimes hesitate over TOD deeds, requesting a death certificate, an affidavit, and in some states a waiting period for creditor claims before insuring a sale; trust property is conveyed by the successor trustee with a certification of trust and rarely draws that scrutiny. The rule of thumb: one property, simple family, modest estate, and no need for management during incapacity favors the deed; anything more favors the trust, and the two are often used together, with the deed moving the house into the trust.

Revocability is the deed's defining feature, but it only works if exercised correctly. Every TOD state allows revocation by recording a new instrument: either a statutory revocation form or a new TOD deed naming a different beneficiary, with the later recording controlling. Two rules are nearly universal: the revocation must be recorded before death to be effective, and a will cannot revoke a TOD deed. A homeowner who writes new children into the will but leaves the old deed on record has left the house to the old beneficiary.

Selling or mortgaging the property needs no revocation at all; the deed simply attaches to nothing if the property is gone at death, and a beneficiary takes subject to any mortgage that exists. Divorce is the event to watch: some statutes automatically revoke a designation in favor of a former spouse, others do not, and relying on the statute instead of recording a fresh deed is a gamble.

Good practice after any major life event, marriage, divorce, a beneficiary's death, an estrangement, is to pull the recorded deed and confirm the beneficiary line still says what you want. Naming an alternate beneficiary at drafting time also prevents the deed from failing silently if the first beneficiary dies before you.

TOD deeds are unforgiving about formalities because the statutes are new and courts read them literally. The universal requirements: the deed must contain the property's full legal description, must be signed by the owner and notarized, and must be recorded in the county where the property sits before the owner's death. An unrecorded TOD deed found in a drawer is void in most states, which is the opposite of the rule for ordinary deeds.

California illustrates how specific the rules can get. Since 2022, a California revocable TOD deed must be signed by two witnesses in addition to the notarized owner signature, and it must be recorded within 60 days of notarization or it is ineffective. The statute also limits eligible property to residential parcels of one to four units, condominiums, and small agricultural parcels with a residence, and it gives heirs a window to contest the transfer after death. Miss any one of these and the property lands in probate despite the deed.

Other states impose their own quirks: beneficiary acknowledgment rules, anti-lapse provisions, creditor claim windows against the beneficiary, and county-specific recording fees and cover sheet formats. This is why the deed should be drafted to your state's statute rather than downloaded, and why a quitclaim deed used as an inheritance shortcut is almost always the wrong instrument for passing property at death.

The recurring failures we see in title work:

• Recording too late or not at all. The deed must be on record before death, and in California within 60 days of notarization. This is the single most common fatal defect.
• No alternate beneficiary. If the sole beneficiary dies first and the statute's anti-lapse rule does not cover the situation, the deed fails and the house goes to probate.
• Contradicting the will. The deed wins, but the contradiction breeds family litigation. The documents should be updated together.
• Forgetting the mortgage and liens. The beneficiary inherits the property subject to every encumbrance; the deed does not clean title, and the lender's due-on-sale rights are handled by federal exemptions for transfers at death, not by the deed itself.
• Using it for a beneficiary on means-tested benefits. An inherited house can disqualify a beneficiary receiving SSI or Medicaid; a properly drafted trust should receive that share instead.
• Assuming it protects against nursing home costs. It does not shelter the home during life and, in expanded-recovery states, not after death either.