Also known as: transfer on death deed · 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 will receive the property upon the owner's death. The instrument is revocable during the owner's life and passes title outside probate upon death.
Taliah Tang, an elderly resident in assisted living with early-stage dementia, executes a transfer on death deed conveying her condominium to her friend Tobias Thomas instead of her son. After her death the son challenges the deed, claiming a higher capacity standard applies than for a will. The court rejects the challenge because the deed requires only the mental capacity needed to make a will.
Tanner Thompson records a transfer on death deed naming his colleague Tiffany Torres as beneficiary of his lakefront cabin. Upon Tanner's death the cabin passes directly to Tiffany without probate administration. The deed operates as a nontestamentary transfer effective at death.
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The capacity required equals the capacity needed to make a will. Courts apply the familiar testamentary-capacity standard rather than the higher contractual-capacity standard. A diagnosis of dementia or Alzheimer's does not automatically invalidate the deed if the transferor understood the nature of the act, the property, and the intended beneficiaries at the time of execution.
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Yes. Revocation is accomplished by a later transfer on death deed, an express revocation instrument, or an inter vivos deed that expressly revokes the earlier deed, provided the revoking instrument is acknowledged after the original deed and recorded before the transferor's death.
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No. The deed is effective without notice, delivery, or acceptance by the beneficiary and without consideration. Recording before the owner's death is the key formality that perfects the transfer.
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