What is a Transfer on Death Deed?
Janell M. SprinkleJanell M. SprinkleA transfer on death (TOD) deed specifies who becomes owner of your real estate at death (or, if the home is jointly owned, at the death of the survivor). For example, a parent might indicate that their home is to transfer to a child upon death. This designation allows the home to transfer to the named beneficiary outside of probate. After death, the designated beneficiary becomes owner by executing and recording an Affidavit of Survivorship, which generally states that the owner has passed and that the last recorded deed names them as rightful transfer-on-death owner.
A TOD deed may not be right for all real estate as it transfers to the beneficiary subject to mortgages, tax liens, and Medicaid estate recovery claims. In addition, if the home is transferred to multiple beneficiaries, it is exposed to creditors, tax liens, and judgements of all co-owners.
It is best to discuss whether a TOD deed is right for you and your beneficiaries with your estate planning attorney as part of your overall estate plan.
