Nevada TOD Deed Problems

A Transfer on Death deed sounds like the perfect solution: the home skips probate entirely and passes directly to your named beneficiary when you die. No court. No attorney fees. No waiting. Your family gets the house without the hassle.

That is all true. But there is a hidden catch that most people who set up TOD deeds never find out about — until they try to sell or refinance the property after the grantor dies and a title company tells them they have a problem.

What a TOD Deed Actually Does

Under NRS Chapter 111, a Nevada Transfer on Death deed allows a property owner (the grantor) to name a beneficiary who will receive the property automatically at the owner's death. The deed must be recorded before the grantor's death, and it can be revoked by the grantor at any time. At death, the beneficiary records an affidavit accepting the property, along with a certified death certificate, and the transfer is complete without probate.

TOD deeds became a popular planning tool precisely because they avoid probate. Nevada's probate process can take six months to over a year for estates requiring court supervision. A TOD deed in theory cuts that to weeks.

So what goes wrong?

The 18-Month Creditor Window Under NRS 111.689

NRS 111.689 is the provision that bites. It states that after the grantor's death, the real property transferred by a TOD deed remains subject to claims by the grantor's creditors for 18 months.

That means the grantor's estate creditors — including hospitals, credit card companies, personal loan lenders, and critically, Medicaid/DHCFP if the grantor received Medicaid-funded long-term care — can enforce their claims against the property during this 18-month window.

The property has legally passed to the beneficiary. But it is not clean. It carries exposure to the deceased grantor's debts for a year and a half.

Why Title Companies Won't Issue Insurance

Here is where the problem becomes concrete. When the beneficiary tries to sell or refinance the property during the 18-month window, they need title insurance. A lender requires it. Most buyers require it. Title insurance protects against exactly the kind of hidden claims that could emerge from a creditor enforcing a right against the property.

Title companies know about the NRS 111.689 window. They know that a creditor could show up within 18 months with a valid claim against the property. So they refuse to issue a clean title insurance policy until the 18-month period has expired.

No title insurance means no mortgage lender will lend on the property. No mortgage lender means most buyers cannot buy it. The practical effect is that the property cannot be sold or refinanced until 18 months after the grantor's death — even though the TOD deed transferred it in days.

The beneficiary who thought they avoided probate may end up waiting longer than probate would have taken, with less flexibility.

How Medicaid Can Pierce a TOD Deed

The creditor window has a particular sting for families where the deceased received Medicaid benefits for long-term care. Nevada's DHCFP is an estate creditor for the amount of Medicaid benefits paid. Under NRS 111.689, DHCFP can assert its recovery claim against TOD deed property within the 18-month window.

This is a common misconception: people assume that because TOD deeds bypass the probate estate, they are also shielded from Medicaid estate recovery. That is not correct under Nevada's current TOD deed statute. DHCFP's recovery authority reaches beyond the probate estate to encompass TOD deed transfers. See Nevada Medicaid Estate Recovery for a full explanation of how DHCFP's recovery process works.

If You Need to Sell or Refinance Immediately

If the beneficiary cannot wait 18 months, there is a procedural option but it is not fast or cheap.

A personal representative — either named in the will or appointed by the court — can petition the probate court to shorten the creditor claim period. This requires:

1. Publishing a Notice to Creditors in a newspaper of general circulation in the county.
2. Waiting a 90-day claim window during which creditors can file claims.
3. Addressing any claims that are filed.
4. Obtaining a court order that shortens or closes the creditor period.

This process takes at minimum 90 days, plus the time for the court to issue the order, plus attorney fees and publication costs. Depending on the county and the court's calendar, it may take four to six months.

The ironic result: a TOD deed, intended to avoid probate, can produce a probate-adjacent proceeding that takes almost as long and costs nearly as much when an immediate sale is needed.

How Joint Tenancy Compares

Joint tenancy with right of survivorship handles the transfer differently and avoids the 18-month problem.

When a joint tenant dies, the surviving joint tenant records an Affidavit of Death of Joint Tenant along with a certified death certificate. The affidavit clears the deceased joint tenant's interest from the title. No creditor window applies in the same way — the surviving joint tenant's ownership was never contingent on the deceased joint tenant's estate, so creditors of the deceased generally cannot reach the joint tenancy property at all.

From a title insurance standpoint, a properly recorded Affidavit of Death of Joint Tenant typically clears title almost immediately. A surviving joint tenant can sell or refinance within weeks of recording the affidavit.

The tradeoff: joint tenancy does not provide the same double step-up in cost basis that community property with right of survivorship does. For married couples, CPROS often provides better tax outcomes on appreciated property. But for estate planning situations where a quick sale after death is anticipated, joint tenancy may be the more practical choice.

What TOD Deed Beneficiaries Should Know Right Now

If you are the beneficiary of a TOD deed and your grantor recently died, you have options — but your timeline matters.

First, determine whether there are any known creditors with claims against the estate, particularly whether the deceased received Medicaid. If so, DHCFP will be monitoring the situation.

Second, if you do not need to sell or refinance immediately, waiting out the 18-month window is the simplest path to clean title.

Third, if you need to sell quickly, consult a Nevada probate attorney about the court-supervised creditor shortening process before committing to any sale timeline — the 90-day minimum notice period must be factored into any purchase agreement.

The Nevada Survivor Benefits Navigator covers real property transfer options — TOD deeds, joint tenancy, probate, and Affidavit of Entitlement — alongside every other survivor benefit step you need to take in the first year after loss.

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