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!

How Does a TOD Work?

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 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.

    Good to Know

    • 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.

    Common Terms

    Record Owner

    The person who legally owns the property. Their ownership is filed with the state or county where the deed is kept.

    Beneficiary

    The person who gets to keep the property given or transferred to them by the owner/Grantor after the owner dies.

    Alternative Beneficiary

    If the beneficiary first named in the TOD dies at the same time or before the owner/Grantor, this second person is next in line to take the property.

    Cancelling or taking back the TOD. This could be because you changed your mind or want to make changes to the TOD.

    Joint Tenancy With Right of Survivorship

    When two people own the same property and have the same rights with that property. When one owner dies, the other automatically owns the deceased person’s share in addition to their own. This ownership style is common with married people and does not require a TOD.