Transfer-on-Death Deed: How It Works and Where It Is Allowed
A transfer-on-death deed (TOD deed), also called a beneficiary deed or revocable transfer-on-death deed, lets a property owner name one or more beneficiaries who will receive the real estate automatically at the owner's death — without going through probate. As of 2026, roughly 30 or more states and Washington, D.C. authorize some form of TOD deed, but availability varies significantly by state, so the first step is always confirming that your state allows it.
How a Transfer-on-Death Deed Works
When you sign and record a TOD deed, you keep complete ownership of the property during your lifetime. The named beneficiary receives no present interest in the property while you are alive — they cannot sell it, mortgage it, or make decisions about it. Their creditors generally cannot reach the property during your lifetime based solely on the deed.
At your death, the beneficiary typically completes the transfer by recording an affidavit of survivorship (or similar document) along with a certified copy of your death certificate at the county recorder's office. In most states that allow TOD deeds, this process can be completed in days rather than the months probate often requires, and without a court proceeding.
Importantly, a recorded TOD deed generally takes precedence over a will. If your will says one thing but a valid, recorded TOD deed names a different beneficiary, the deed usually controls. Consult an estate planning attorney if you have both a will and a TOD deed to make sure they work together as intended.
Revocability: You Can Change Your Mind
A core feature of TOD deeds in states that allow them is that they are revocable during the owner's lifetime. You can revoke or change the beneficiary designation at any time by executing and recording a revocation (or a new TOD deed naming a different beneficiary). The revocation must generally be recorded before your death to be effective — an unrecorded revocation is typically ineffective.
Because you retain full control, you can still sell the property, refinance it, rent it, or otherwise deal with it freely. A sale effectively cancels the TOD deed because you no longer own the property at death.
Which States Allow TOD Deeds?
State law is the only source of authority for whether a TOD deed is valid. As of 2026, the general consensus from legal resources is that more than 30 states plus Washington, D.C. permit TOD deeds in some form, including states such as California, Texas, Colorado, Arizona, Nevada, Illinois, Ohio, Missouri, Washington, and others. Several additional states have adopted or are in the process of adopting TOD deed legislation in recent years.
Some states that do not allow traditional TOD deeds offer alternative tools with similar effect — for example, Florida and a small number of other states recognize an enhanced life estate deed (sometimes called a "Lady Bird deed") that achieves comparable probate avoidance with different legal mechanics. Pennsylvania, as of 2026, does not permit TOD deeds for real estate.
Because state laws change, always verify current availability with your county recorder's office or a licensed attorney in the state where the property is located before relying on a TOD deed as part of your estate plan.
What a TOD Deed Does Not Do
Several common misconceptions are worth addressing directly:
- It does not protect property from your debts or creditors. In most states, creditors of the deceased owner can still make claims against property that passed via a TOD deed, at least within a certain period after death. The property is not placed in a protected trust.
- It does not guarantee a clean title. The beneficiary receives whatever interest the owner had — subject to any liens, mortgages, easements, or other encumbrances. A title search before or after the transfer is generally a good idea; see property title search for an overview.
- It does not address what happens if the beneficiary predeceases you. Without an alternate (contingent) beneficiary named in the deed, the property may fall back into your estate and go through probate. Many states that authorize TOD deeds allow — and practitioners generally recommend — naming a backup beneficiary.
- It is not a substitute for comprehensive estate planning. A TOD deed handles one property. It does not address bank accounts, retirement accounts, other assets, guardianship of minor children, or incapacity planning.
Tax Considerations
Property that passes via a TOD deed at death is generally included in the deceased owner's taxable estate for federal estate tax purposes. In many cases, the beneficiary receives a stepped-up income tax basis equal to the property's fair market value at the date of death, which can reduce capital gains tax if the beneficiary later sells. However, tax rules are complex, vary by situation, and can change. Consult a CPA or tax attorney about the specific implications for your estate.
Some states impose their own estate or inheritance taxes; others do not. Whether the transfer triggers local transfer taxes or recording fees also depends on state and county rules. See quit claim deed taxes for a general overview of how deed-related transfers are typically taxed — many of the same considerations apply to TOD transfers.
TOD Deed vs. Quit Claim Deed
A quit claim deed transfers whatever interest the grantor currently holds to the grantee during the grantor's lifetime, with no warranty of title. It takes effect immediately upon delivery and recording. A TOD deed, by contrast, does not transfer any present interest — it only operates at death and is revocable until then. The two instruments serve different purposes: a quit claim deed is used for current transfers (adding a co-owner, removing a spouse's name, correcting title), while a TOD deed is an estate-planning tool. See quit claim vs. warranty deed for more on how deed types differ generally.
How to Create and Record a TOD Deed
Requirements vary by state, but in most jurisdictions that allow TOD deeds, the deed must be signed by the owner, notarized, and recorded in the county where the property is located before the owner's death. Recording is the critical step — an unrecorded TOD deed is generally ineffective. County recorder's offices typically charge a recording fee; confirm the current fee with your specific county. For general guidance on the recording process, see recording a deed at the county recorder.
Because technical errors can void a TOD deed, having a licensed attorney in your state review the document before recording is worth considering, particularly for higher-value properties or complex ownership situations.