Transfer on Death Deeds (Beneficiary Deeds)

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What is a Transfer on Death Deed? Most states now have a probate avoiding mechanism that allows owners to transfer property real property, including mineral interests, upon their death to selected individual or individuals without the need for probate. This works whether or not an individual has a Will.
The process is fairly simple. A form is completed and filed listing the owner(s), legal descriptions, and beneficiaries. This gives the beneficiaries no right to income, possession, management, etc until the grantor dies and they file an acceptance form. In Oklahoma, the person can:

  1. change their mind and revoke the Transfer on Death Deed (TODD);
  2. sell or lease the property;
  3. give away the property

And may do so without the beneficiary’s consent or notification. The property is transferred subject to all liens, mortgages, easements, leases etc.

In some states (other than Oklahoma), the property may be clawed back into a probate estate if there are insufficient assets to pay the expenses.

When should it be used?

This may be useful when an owner does not have a Trust. Generally, a trust in one state may own property in other states. All that is typically required is that it be deeded into the Trust.

A TODD is not recommended for those who wish to leave property to minors or incompetents. There are generally limited contingency options in the event that a beneficiary predeceases the owner.

The TODD can be a great tool where someone has not yet created a trust.

Expense: The TODD forms are not expense to create or file. Online forms may be available but often lack important information. For example, in Oklahoma if the property is not claimed within 9 months of death it reverts to the probate estate. Ask your attorney to provide both the initial form and the beneficiary’s claim form to avoid that problem.

  • What describes your current Estate Plan?
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This article is not legal advice or opinion. You should consult with an attorney of your choice to determine if this is appropriate for your situation.*

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