Transfer on Death Deed: How It Works and Which States Allow It

What a Transfer on Death Deed Actually Does

A transfer on death deed (TODD) lets a property owner name a beneficiary who will automatically receive the property when the owner dies — no probate court, no executor involvement, no waiting months for letters testamentary. The owner records the deed with the county recorder while alive, keeps full control of the property during their lifetime, and can revoke or change the beneficiary at any time.

The key difference from other estate planning tools: a TODD costs almost nothing to set up compared to a living trust, and it takes effect only at death. The owner can still sell the property, mortgage it, or rent it out without the beneficiary's consent.

Which States Allow Transfer on Death Deeds

As of 2026, roughly 30 states and the District of Columbia recognize TODDs. States that adopted the Uniform Real Property Transfer on Death Act include Colorado, Hawaii, Illinois, Montana, Nebraska, North Dakota, Oregon, Virginia, Washington, and others. Texas, New Mexico, Mississippi, Arizona, Nevada, Ohio, Missouri, Georgia, and New York also allow them under their own statutory frameworks. Georgia authorizes them under Code § 44-17-2, effective July 1, 2024; New York authorizes them under Real Property Law § 424.

Notable states that do not allow TODDs include Florida, North Carolina, and Pennsylvania. In these states, a revocable living trust or joint tenancy with right of survivorship remains the primary probate-avoidance option for real property.

Check your state's statute before assuming a TODD will work. The recording requirements, witness rules, and revocation procedures vary.

How to File a Transfer on Death Deed

The process is straightforward in most states:

1. Draft the deed using the statutory form your state requires. Many states mandate specific language — generic templates may be rejected by the county recorder.
2. Sign and notarize the deed. Most states require notarization; some also require witnesses.
3. Record the deed with the county recorder or register of deeds in the county where the property is located. An unrecorded TODD is void in most jurisdictions.
4. Notify the beneficiary (optional but recommended). The beneficiary has no ownership rights until the owner dies, but knowing about the deed avoids confusion later.

After the owner dies, the beneficiary files a certified death certificate and, in some states, an affidavit confirming the transfer. The property passes outside probate, and the beneficiary can then record a new deed in their name.

For an owner's death on or after July 1, 2024, the Georgia beneficiary must record the affidavit with a copy of the death certificate and related documents with the superior court clerk in the property's county within nine months, or the interest reverts to the estate. For deaths on or after July 1, 2026, the filing also includes a real estate transfer tax declaration form.

TODDs vs. Life Estate Deeds

A life estate deed transfers a present interest to the remainder beneficiary immediately, while the owner retains the right to live in and use the property. This creates a shared ownership structure that restricts what the owner can do — selling or refinancing typically requires the remainder beneficiary's consent.

A TODD, by contrast, gives the beneficiary nothing until the owner dies. The owner has full, unrestricted control. If the owner wants to sell the property next year, they simply sell it and the TODD becomes meaningless.

The tradeoff: a life estate deed locks in Medicaid planning advantages in some states (the property may be protected from estate recovery), while a TODD in many states does not shield the property from Medicaid claims because the transfer doesn't happen until death.

Limitations You Should Know

TODDs have real constraints that trip people up:

• Multiple beneficiaries get messy. If you name three children as beneficiaries, they inherit as tenants in common. If they disagree on selling, you've created the same co-heir conflict a TODD was supposed to simplify.
• Mortgage debt doesn't disappear. The beneficiary inherits the property subject to any existing mortgage. Under the Garn-St. Germain Act, the lender cannot call the loan due when a relative inherits, but someone still needs to make payments.
• Creditor claims may survive. In some states, creditors of the deceased can still pursue the property even though it transferred outside probate. The TODD doesn't create an asset-protection shield.
• Medicaid estate recovery varies by state. States with "expanded recovery" definitions (like California) can pursue TODD-transferred property for Medicaid reimbursement. Probate-only recovery states generally cannot.

When a TODD Makes Sense

A TODD works best for simple situations: a single property passing to one or two beneficiaries with no anticipated disputes, no Medicaid planning concerns, and an owner who wants the cheapest available probate avoidance.

For complex estates — multiple properties, blended families, potential Medicaid exposure, or heirs who may disagree — a revocable living trust offers more control, despite higher upfront costs.

If you're inheriting property and dealing with the transfer process right now, our Property & Real Estate Transfer After Death toolkit walks you through the entire timeline, from securing the property in the first 48 hours through final deed recording — whether the transfer comes through a TODD, probate, or trust.