Definition
A transfer on death deed, also called a beneficiary deed in some states, lets a homeowner name who will receive the house when they die, so the property passes outside probate. The owner keeps full control during life: they can live in the home, sell it, refinance it, or revoke the deed, and the beneficiary has no rights until the owner's death. To be valid, the deed generally must be signed and recorded with the county before the owner dies, following that state's exact form. Not every state allows these deeds. After death, the beneficiary usually records a death certificate and sometimes an affidavit to claim the property, after which they can sell it. The home still carries its mortgage and liens, and some states allow creditors or Medicaid recovery to reach it. For heirs, a recorded transfer on death deed can turn a months-long probate into a much faster sale.
Real seller example
Years before her death, Eleanor Brooks recorded a transfer on death deed naming her nephew Sam as beneficiary of her condo. After she passed, Sam recorded the death certificate with the county as his state required. The title company confirmed the deed had been recorded properly during Eleanor's lifetime. Because the condo passed outside probate, Sam was able to sell it within weeks. The remaining mortgage and HOA dues were paid at closing, and he did not have to wait for a court to appoint anyone.
Frequently asked questions
No. Many do, but not all. Check your state's statutes or court self-help resources.
Usually after recording the required death documents. Title companies may have their own requirements.
No. The house passes with its mortgage and liens, which are paid off when it's sold.
Yes. The deed can typically be revoked or replaced during the owner's lifetime.
In most states an unrecorded deed at death isn't effective, so the home may go through probate.
In some states, yes, including Medicaid estate recovery. Ask an attorney.