What is a transfer on death deed? A transfer-on-death deed, or TOD deed, is a simple, inexpensive, and effective tool to transfer real property at the death of the owner. In the states where it is available, it has become very popular with attorneys, property owners, and beneficiaries alike.
Why are transfer on death deeds popular? The reason TOD deeds have become so popular is that the transfer of the land under a TOD deed can work to avoid both the after death expenses of probate, and the upfront planning expenses of a trust.
Are they for everyone? No. TOD deeds are not the best approach for everyone. While they are an excellent option under the right circumstances, they are primarily for individuals with adult beneficiaries that get along very well. If you have any hint that your beneficiaries will fight, you better choose to use a will/ probate based plan or a revocable living trust plan for your estate.