Transfer on Death Deeds (TODD): The Estate Planning Tool Most People Don't Know About

In about 30 US states, you can sign and record a Transfer on Death Deed (also called a TODD, beneficiary deed, or revocable transfer-on-death deed) that names someone to receive your home automatically when you die — bypassing probate entirely. It works the same way naming a beneficiary on a bank account or 401(k) works: while you're alive, you own and control the property completely. When you die, it passes immediately to the named person.

For people who own a home and want to leave it to a specific family member without putting it in a trust or going through probate, a TODD is one of the most powerful and least-known estate planning tools available.

How a TODD works

While alive, the owner (you):

Continues to own the property fully — same as before
Can sell, mortgage, refinance, or transfer it normally
Pays the property tax, maintains the property, has full responsibility
Can revoke or change the TODD at any time, without the beneficiary's consent or knowledge
Can name multiple beneficiaries (as joint tenants or tenants in common)
Can name contingent beneficiaries (if my first choice dies before me, then to...)

The beneficiary, while you're alive:

Has no ownership interest in the property
Cannot sell or borrow against it
Has no rights to occupy or visit
Is not protected from your debts or judgments against you
Doesn't owe any taxes or fees on it
Doesn't even have to know you've named them (though most experts recommend telling them)

When you die:

The beneficiary files a short affidavit (and a certified death certificate) with the county recorder
Title transfers automatically — no probate, no court hearing, no executor required for this asset
The beneficiary takes the property subject to any existing mortgage or liens
The beneficiary's cost basis "steps up" to fair market value on the date of death (huge for capital gains)

Why TODDs are useful

Probate avoidance without a trust

Probate is the court process by which a deceased person's assets are inventoried and distributed. In many states it takes 6–18 months and costs 3–7% of the estate's value in court fees, executor fees, and attorney fees. A TODD lets a home — usually the largest single asset in most families' estates — skip probate entirely. The savings can be substantial.

Cheaper and simpler than a living trust

Living trusts also avoid probate, but they require: an attorney to draft ($1,500–$5,000), a separate trustee structure, and "funding" the trust by transferring assets into it (which itself requires deeds for real estate). For people who only need to handle their home, a TODD does the same job for the cost of one deed ($50–$200 to record).

Fully revocable

Unlike most "transferring property during your lifetime" options (irrevocable trusts, joint tenancy, outright gift), a TODD doesn't give anyone any rights until you die. You can change your mind any time. If your relationship with the intended beneficiary changes, you record a new TODD or a revocation and you're done.

Doesn't affect Medicaid eligibility

Because a TODD doesn't transfer any present interest, it doesn't count as a gift for Medicaid five-year look-back purposes. (Important caveat: the property may still be subject to Medicaid estate recovery after your death in many states.)

Where TODDs are available

As of 2026, the following states have adopted some form of TODD statute (this list shifts; verify with your state's current law):

Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Illinois, Indiana, Kansas, Maine, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.

States that have NOT adopted TODDs (you'll need a different tool — typically a living trust or "Lady Bird" enhanced life estate deed in the states that allow them): Connecticut, Delaware, Florida (uses Lady Bird deeds instead), Georgia, Kentucky, Louisiana, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont.

Some of the non-TODD states allow "Lady Bird" enhanced life estate deeds that accomplish similar goals — Florida, Texas, Michigan, Vermont, and West Virginia in particular. These are similar to TODDs but operate via a different legal mechanism. Talk to a local estate planning attorney about which tool applies in your state.

When a TODD makes sense

You own a home and want to leave it to one specific person — adult child, partner, sibling — without going through probate.
Your estate is otherwise simple — not enough other complexity to justify a full living trust.
You want flexibility to change your mind — without setting up irrevocable structures.
You don't want a co-owner during your lifetime (which is what putting them on the deed jointly would do).
You're in a TODD state. Step one.

When a TODD does NOT make sense

You want the beneficiary to have rights to the property while you're alive. Use joint tenancy or a trust instead.
You have multiple properties, complex assets, or minor children as beneficiaries. A living trust is the right tool here.
You want to control how the beneficiary uses the property after your death (e.g., "they get the house but they can't sell it for ten years"). Trusts can do this; TODDs can't.
You're in a non-TODD state. Talk to an attorney about your state's alternatives.
You're in California and the beneficiary isn't your spouse or child. Proposition 19 makes the property reassessment trap punishing.
The property has substantial debts or judgments against you. The beneficiary inherits subject to all of those.

Common questions

Does the beneficiary have to accept? No. They can disclaim the inheritance, in which case the property goes to your contingent beneficiary, or to your estate, depending on the deed and state law.

What if I get a divorce after signing a TODD naming my spouse? Most states automatically revoke beneficiary designations to ex-spouses upon divorce, but the rules vary. Record a new TODD after any divorce.

What if the beneficiary dies before me? Without a contingent beneficiary, the property usually passes through probate just like it would without a TODD. Naming contingent beneficiaries solves this.

Does a TODD avoid estate tax? No. TODDs avoid probate, not estate tax. For very large estates, separate estate tax planning is needed.

Can creditors come after the beneficiary? The beneficiary inherits the property subject to your debts. If you owe money when you die, creditors can claim against the property the beneficiary receives.

What ClosingDesk handles (and doesn't)

ClosingDesk currently focuses on standard quitclaim, grant, and warranty deeds. TODDs are state-specific instruments with different statutory language requirements — we don't have full TODD support across all 30 states yet, but we're adding it.

If you're interested in a TODD, email us at support@closingdesk.io with your state, and we'll either tell you we can handle it manually or refer you to the right local resource. If your state isn't on the TODD list above, an estate planning attorney is the right first stop — TODDs aren't the right tool for your jurisdiction.

Start a standard deed transfer ($199) Ask about TODD support

This article is general information, not legal advice. State TODD laws vary materially in their requirements, available exemptions, and effects. Talk to an estate planning attorney before recording a TODD, especially if your estate involves multiple beneficiaries, debts, or special situations.