Transfer on Death Deed (or Beneficiary Deed)

A Transfer on Death deed (TOD) is used to transfer property ownership to another person when the owner dies. The person receiving the property must take some steps after the owner’s death to finalize things and make it legal.

The property in a TOD can be a vehicle, a home, land, mineral rights, or drilling rights. 

A TOD is an easy way to leave your property ownership or interests to someone else after you die. This is a great way to help your loved ones avoid a complicated court process called probate to divide up your property after your death. If your only high-value possessions can be transferred to someone else using a TOD, you might not even need an expensive will or trust!

A property owner can write a TOD using a form created by the state for vehicles or by their county for property like land or mineral rights. 

• The TOD must include:
  • Name of the current property owner, also known as the grantor
  • Name of the beneficiary who will own the property after the current owner dies
  • Signatures of the current owner, two witnesses, and a notary
• The property owner must “record” the TOD with the county. This is done by taking the completed TOD form to the state or county office where the property deed is officially kept. The clerk at that office will take the original copy and keep it on file. 

The beneficiary who takes the property after the record owner dies must take a few actions to officially claim the property.

• The beneficiary must create a “Beneficiary’s Affidavit”, or sworn statement. This document should mention:
  • The legal description of the property
  • Whether the beneficiary was married to the record owner
  • A copy of the record owner’s death certificate or another document verifying their death.
• The beneficiary’s affidavit must be filed with the state or county office where the deed and TOD are filed within nine months of the person’s death.

• A TOD is not a sale. The beneficiary does not need to pay money to the property owner at any point.
• The beneficiary does not need to know about the TOD before the owner dies.
• The owner may revoke the TOD or file a new version at any time. A new version of the TOD cancels out and revokes the previous one.
• When the beneficiary takes the property they will also keep all mortgages, liens, security interests, and/or assignments attached to the property. A property title search can help the beneficiary find out about any of these issues.
• The beneficiary is not required to take the property. If the owner filed a TOD and the beneficiary does not want the property, the beneficiary is not required to take it when the owner dies.