If your loved one signed a transfer-on-death deed, the house may pass to you without probate. Here is how to tell whether one exists, the steps to put the home in your name, and what the deed does not make go away.
September 30, 2026 · about 9 min read · free
Sometimes, in the middle of the paperwork after a death, a family finds a piece of good news: a copy of a deed that says the house goes to you "on the death of the owner." Or an attorney mentions that your mother signed something years ago so the home would skip probate. It can feel like one heavy door just opened on its own.
In many cases, it has. A transfer-on-death deed — also called a TOD deed or a beneficiary deed — is one of the simplest ways a home can pass from one generation to the next. But "simple" is not the same as "automatic," and there are a few things the deed doesn't do that are worth knowing before you make plans for the house. Here is how it usually works.
A transfer-on-death deed is a deed the owner signs and records during their lifetime that names who should receive the home when they die. While the owner is alive, nothing changes: they still own the house, can live in it, sell it, refinance it, or cancel the deed at any time by recording a revocation, and the named beneficiary has no rights to it yet. At the owner's death, ownership passes to the beneficiary without the house going through probate.
Many states allow these deeds, but not all of them do, and the details differ from state to state. The law that matters is the law of the state where the house is located — not where your loved one lived or where you live.
A TOD deed generally has to be recorded with the county before the owner dies to take effect. That makes the county's land records the most reliable place to look. A few ways to check:
One caution: a signed TOD deed that was never recorded is not effective in most states, even if you find it in a drawer. And if the owner recorded a later deed revoking it, or sold the house, the earlier deed no longer controls. The most recent recorded document is what counts.
The beneficiary doesn't need a court order, but the public record won't update itself. The usual steps look like this:
Once the affidavit is recorded, the land records show you as the owner. That is the moment a buyer's title company, an insurer, or a lender will look for.
If the house did not pass by a TOD deed — or you're comparing the other routes — this post walks through every common path: transferring an inherited house into your name.
Skipping probate is a real relief. But the house comes to you as it was, not as a clean slate.
A TOD deed transfers the home subject to whatever is already recorded against it: the mortgage, a home equity line, unpaid property taxes, or other liens. Federal law generally prevents a lender from calling the loan due just because the home passed to a relative at death, but the payments still have to be made. Reach out to the mortgage servicer early, explain that the owner has died, and ask what they need from you.
For more on how that conversation usually goes, see inherited a house with a mortgage? Here's what happens to the loan.
In many states, if the rest of the estate isn't enough to pay the deceased owner's valid debts, funeral costs, or the costs of settling the estate, the property that passed by a TOD deed can be reached to cover the shortfall — often only for a limited time. Some states also allow Medicaid estate recovery to reach property that passed outside probate. If your loved one received long-term care through Medicaid, it is worth asking about this before you sell or borrow against the house.
This post explains how estate recovery works: can Medicaid take an inherited house?
A TOD deed can be challenged in court in some of the same ways a will can — for example, if someone believes the owner lacked the capacity to sign it or was pressured into it. Most TOD deeds are never contested. But if a relative is upset about who was named, it helps to know that the deed is strong, not untouchable.
If the deed names two or more beneficiaries — say, three siblings — they usually become co-owners of the house together. That often means everyone has to agree before the home can be sold, rented, or refinanced. It's the same situation families face when siblings inherit through a will, and the same kinds of conversations apply.
For a practical way to work through those decisions together, see siblings inherited a house together — now what?
This happens more than people expect, especially with deeds signed many years ago. What follows depends on the deed's wording and your state's law. Some deeds name an alternate beneficiary. In many states, a deceased beneficiary's share goes to the other surviving beneficiaries; in some, it passes to that beneficiary's children instead. If no one named survived, the house may pass through the owner's estate after all. Because the outcome turns on specific wording and state rules, this is a good moment to have a probate or real estate attorney read the deed.
Because the owner kept full control of the home until death, property that passes by a TOD deed is generally treated as part of the deceased owner's estate for tax purposes. In most cases that means the beneficiary gets a "stepped-up basis" — the home's tax basis resets to its value at the date of death — which can greatly reduce the tax if you sell. A tax professional can confirm how it applies to your situation.
Here's a plain-English explanation of how that works: what stepped-up basis is and how it cuts the tax when you sell.
While the paperwork moves forward, the home still needs looking after. A few things worth doing in the first weeks:
Insurance on a vacant inherited home has a few specific traps, covered here: homeowners insurance on an inherited (and empty) home.
If your loved one recorded a transfer-on-death deed, they gave you a real gift: a way for the home to reach you without months in probate court. What's left for you is usually a short, manageable list — confirm the deed was recorded, record the affidavit with a death certificate, and then keep the mortgage, taxes, and insurance in good order while you decide what's next.
Because every state handles these deeds a little differently, a brief consultation with a local probate or real estate attorney is often worth it, especially if there are debts, Medicaid care, co-beneficiaries, or a beneficiary who has passed away. And if you're finding it hard to think about paperwork right now, that's normal. You don't have to decide anything about the house today.
Generally, yes — for the home itself. If the deed was properly signed and recorded before the owner died, the house usually passes to the named beneficiary without going through probate. Other assets in the estate may still need probate, and the beneficiary still has to record the required affidavit and death certificate with the county.
In many states, no — a will generally can't revoke or change a recorded TOD deed; the owner would have needed to record a revocation or a new deed. Rules vary by state, so if a will and a TOD deed seem to conflict, have a local attorney review both.
The beneficiary isn't usually personally liable for the loan, but the house stays subject to the mortgage. If the payments stop, the lender can still foreclose. Contact the servicer early to explain the situation and ask what they need.
Often just days to a few weeks — mostly the time it takes to get certified death certificates and record the affidavit. Some states add a notice or waiting period, and a title company may want additional documents before insuring a sale.
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