Also known as: beneficiary deeds · transfer on death deed · TOD deed
Written by attorneys · grounded in primary & secondary sources — see below
A deed authorizing an owner of real property to designate one or more beneficiaries who receive the property upon the owner's death. The deed remains revocable during the owner's life and requires only the same mental capacity needed to execute a will.
Bella Barnes, an elderly owner diagnosed with early-stage dementia, signed a beneficiary deed naming her neighbor as recipient of her lake house. Medical notes showed occasional confusion, yet she accurately described the property and her intent to alter her will during the signing. Her son contested the deed on capacity grounds. The court upheld the deed because the capacity standard matches that required for a will.
Bharat Bhatia executed a beneficiary deed conveying his rental properties to his sister upon his death. He retained full ownership and control during life. After his death the sister claimed the properties directly under the deed. The properties passed outside probate to the named beneficiary.
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The capacity required equals the capacity needed to make a will. A transferor must understand the nature of the act, the property involved, and the natural objects of bounty at the time of execution.
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Yes. Divorce automatically revokes revocable dispositions to a former spouse and to relatives of the former spouse in a governing instrument such as a beneficiary deed, unless a contrary provision exists.
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Recording provides notice but is not required for validity between the transferor and the designated beneficiary. The deed operates at death if properly executed.
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Yes. Revocation occurs by a later transfer on death deed, an express revocation instrument, or an inter vivos deed that expressly revokes the prior deed, provided the revoking instrument is acknowledged and recorded before death.
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