Completing a Transfer on Death Deed (TODD) usually involves making sure your state allows it, getting the correct form, filling in your legal property details and beneficiary info, signing it in front of a notary, and recording it with your county office.
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 in the first place is a challenge, especially because not all states allow them. We’re going to cover some of what you need to know, as well as offer an affordable option to help you through this complex process.
A TODD lets your home pass straight to a person of your choosing when you pass away. The transfer happens without the property going through probate court. This can save your family months of waiting.
You remain the full owner of the property while you’re living. That gives you the right to live in the home, sell it, refinance it, or even change the deed.
It’s that balance that makes TODDs appealing to many people. They can give you a straightforward way to plan ahead while keeping your options open. And you still get to help your loved ones avoid the time, cost, and stress of probate.
When completing a Transfer-on-Death Deed, getting the details right ensures your deed will be valid when your family needs it most. Here’s what you need to know.
Over 30 states and Washington, D.C. recognize TODDs. But not every state does. And the rules can differ quite a bit, depending on where you live.
Even if your state allows these deeds, it might have specific requirements about wording, formatting, and/or how you have to file the deed. That’s why you need to check your state’s current laws or speak with a professional before moving forward.
A quick double-check now could prevent a situation where a court rejects your deed when your family is counting on it.
Every state has its own required language, formatting rules, and filing standards. Using the wrong form can invalidate your deed from the start.
You can also check with your local county clerk or recorder’s office. They often provide state-approved forms.
Always be cautious about using generic online templates. If the wording or structure isn’t a match for your state’s rules, the deed may be rejected or invalid.
One of the simplest ways to make sure you have the right form is by getting legal help through a LegalShield® Membership. We connect you with a LegalShield provider law firm who can help you understand your state’s requirements and make sure everything is set up right.
When completing your Transfer on Death Deed, you’ll need to include the property’s legal description — not just the street address. The legal description is the precise identifier found on your current deed. It’s what the county uses to confirm exactly which property is getting transferred here.
You’ll also name your beneficiary. This is the person who will get the property when you pass away. It’s a good idea to name both a primary and an alternate beneficiary. That way, if your first choice can’t inherit the property, it doesn’t end up going through probate anyway.
Specificity matters as you name beneficiaries. Don’t just say “my children” — you need to use full legal names, and how you want them to own the property, such as in fractions or if the property is undivided. When naming joint or back-up beneficiaries, the language you use is very important. It is a good idea to have a lawyer review a TODD in this situation.
If you sign a TODD without a notary, is it valid? In most states, probably not. You’ll usually need to sign the completed form in front of a notary public. This notary verifies your identity and makes sure you’re signing the document of your own accord.
Everyone who is on the current deed must sign the TODD. As previously mentioned, TODDs do not typically overrule spousal rights. If you have a deed where your spouse is not a named owner, it is a good idea to discuss this situation with a lawyer before preparing and filing a TODD.
As a rule of thumb, the beneficiary generally doesn’t need to sign the deed. The transfer only takes effect after you die, so the document is really about your intent as the property owner. Still, make extra sure that your signing process meets your state’s legal standards.
You still have to record your deed in the county where the property is located. If not, it won’t take effect — no matter how carefully you completed or signed everything up to this point.
After you’ve recorded it, the deed becomes a part of the public record. And that all but ensures the property will transfer according to your wishes.
Keep in mind that most counties charge a filing fee. But the amount can vary widely by location. There may also be documents you need to file along with your deed. You can check with your local office ahead of time to avoid surprises.
Further reading: How Long Do You Have to Transfer Property After Death?
One major reason homeowners look into a TODD is to avoid probate. Passing property through a standard Will most often means it has to go through probate court. Probate can mean families wait for months before anything is final — all while dealing with legal paperwork and court oversight.
A TODD can also be a simpler, more affordable alternative to a Living Trust that also keeps your home or other real estate out of probate court.
Importantly, you stay in control the entire time. You can revoke or change the deed whenever you want. Revoking a TODD has a slightly different process than a Will does, and typically forms are not publicly available, so you may need to speak to a lawyer about how to do this.
Here’s a side-by-side look at how a Transfer-on-Death Deed compares to a standard Will:
A Transfer-on-Death Deed can be a helpful tool. But it’s not the perfect solution for every situation. Before you move forward, take a moment to understand a few potential cons that could affect how your property is handled later:
Setting up a TODD is a meaningful step. But it's often just one part of a broader estate plan. Questions in the estate planning world come up quickly and often. With a LegalShield Membership, you can get those questions answered, get a professional review of key documents — TODD, Durable Power of Attorney, Living Will, etc. — and much more.
Your LegalShield provider law firm could assist you with these steps in the process:
There’s no need to navigate permanent legal changes alone. Consult with a provider lawyer through a LegalShield Personal Plan today.
Yes, you can sell your house after you file a TODD. A TODD doesn’t limit your control over the property at all while you’re alive. You can sell the home, refinance it, or even give it away if you want.
If your TODD beneficiary dies before you, you should complete a new TODD as soon as possible. If you pass away before doing so, then the property will likely become part of your prior beneficiary’s probate estate unless you named an alternate beneficiary. In other words, the property might have to go through probate, which is likely what you were trying to prevent in the first place.
A TODD doesn’t typically eliminate federal estate taxes or capital gains taxes. These deeds are more about avoiding probate — not tax optimization.
However, your beneficiary is likely to receive what’s known as a “stepped-up basis.” This means the property’s value gets adjusted to its market value at the time of your passing. That can cut down on capital gains taxes if they decide to sell the home later on.
You don’t necessarily need a lawyer to complete a TODD. But even little errors in filing, wording, or even formatting can cause problems with the deed later.
Working with a lawyer can help you make sure everything is right the first time. With a LegalShield Membership, you can have a provider lawyer review your document and answer your questions without the high hourly costs tied to traditional law firm arrangements.
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