Can a Transfer on Death Deed Save Your Family Money?

Seniors hold deeds to a third of all owner-occupied homes. In the coming years, they’ll spend a lot of money in estate planning. Those who want a simple, cheap way to transfer the home at death have a new option in many states: the transfer on death deed (also known as a TOD deed, or simply TODD).

This useful legal instrument transfers ownership of a home immediately when the owner dies. This is a direct transfer, without going through the costly probate court process. It’s one way to reduce legal burdens and protect family assets.

Need to know more? Read on for a discussion—and to learn which states have just adopted TOD deeds.

More than 30 states and the District of Columbia have adopted transfer on death deeds for real estate. Homeowners can find state-specific TODD forms here.

Know the Basics About a Transfer on Death Deed

With the TOD deed, in states that allow it, you can designate a beneficiary who will receive your home, using a single form. The form must be recorded with the county during your lifetime to be effective.   

When you record the transfer on death deed, you stay in control. Your beneficiary gets zero rights to, or control over, the property during your life. Without needing the beneficiary’s approval, you may transfer the deed to another party, take a loan out on the home, and so forth.

Even after recording the TOD deed, an owner may revoke it. State laws generally allow revocation through a form, or by the owner transferring the homeownership to someone other than the named beneficiary.

Upon death of the owner, an Affidavit of Death should be recorded. The recorded TOD deed, together with any state-required post-death filing, documents the transfer in the land records. The property will pass according to the TOD deed whether or not there is a will. If there is a will, and it names the home, the TOD deed will override what the will says.

News From Maryland, South Dakota, and Delaware

The Maryland Transfer on Death Deed Act, introduced this year, was approved by the governor on May 26, 2026. AARP Maryland supports it because it operates in the absence of a will, and because it’s a relatively simple tool that cuts out court costs and eases the estate planning burden for seniors with modest incomes. Maryland’s law is expected to take effect on October 1, 2026.

South Dakota’s Real Property Transfer on Death Act is now law. Its intention is to simplify a transfer of real property and/or mineral rights upon the owner’s death.

This follows Delaware’s TOD deed law, in force since December 2025. When that law was announced, New Castle County Recorder of Deeds Mike Kozikowski called it a major victory for Delaware families. To be valid, the Delaware TOD deed must name the beneficiary (or beneficiaries) and state that the transfer takes effect at the owner’s death. Delaware requires two witnesses, at least one of whom must not be a beneficiary.

Case-Specific Questions Can Arise After Death. Lawyers Offer Guidance

Creditors may have (as they do in Texas, for example) two years to make claims after the death of someone who owes them money. For this reason, some but not all title companies may delay insuring the title right after the owner’s death. So the beneficiary may need time before financing or selling, if that is the beneficiary’s intent.

State laws vary, and sometimes change. We’ve provided a general discussion of this topic in the article above. It isn’t legal advice. Speak with an attorney for a full understanding of how state laws and local rules may apply, and speak with your tax specialist about tax implications of deed transfers.