Transfer on Death Deed in California: How It Works and What Heirs Should Know
A transfer on death deed (often called a TOD deed) lets a California homeowner leave their house to someone without probate, using a simple recorded form instead of a will or trust. It’s become a popular, low-cost way to pass on a home.
We’ve bought more than 100 inherited homes in California, and we see TOD deeds more and more often. We’re not attorneys, and this isn’t legal advice. But here’s a plain-English overview for owners thinking about one, and for heirs who just found out they were named on one.
What Is a Transfer on Death Deed?
California’s revocable transfer on death deed lets an owner name one or more beneficiaries who will receive the home when the owner dies. Key points:
- Nothing changes while the owner is alive. The owner keeps full ownership, can sell or refinance, and can change or cancel the deed at any time.
- The beneficiary gets nothing until the owner dies. They have no rights to the house before then.
- The house skips probate. After the owner’s death, the beneficiary can take ownership by recording a few documents, instead of going through court.
For comparison, formal probate in California often takes 9 to 18 months. See how long probate takes in California.
How to Create a Valid TOD Deed
The rules are strict. According to the Sacramento County Public Law Library, in general:
- Use the statutory form. Many county recorders offer it on their websites.
- The owner must have legal capacity to sign, similar to signing a will.
- Sign it in front of a notary and two witnesses.
- Record it with the county recorder within 60 days of signing. A TOD deed that isn’t recorded in time isn’t valid.
- Each owner generally completes their own deed if more than one person owns the home.
Mistakes here are common, so many owners have an estate attorney prepare or review the deed.
Limits and Risks of a TOD Deed
A TOD deed is simple, but it isn’t right for everyone:
- It only covers real estate. You’ll still need a will or other plan for everything else.
- Creditors can still reach the house. Debts of the person who passed away may still need to be paid, and the beneficiary can be responsible up to the home’s value.
- Family disputes can still happen. Relatives can challenge a TOD deed, for example over capacity or undue influence.
- No backup manager. Unlike a living trust, there’s no trustee to handle the house if the owner becomes incapacitated.
- Multiple beneficiaries become co-owners. If you name several children, they’ll need to agree on whether to keep or sell. That’s one of the most common sources of family conflict we see.
- Property taxes still follow the normal rules. Under Prop 19, an inherited home is generally reassessed unless a child moves in and other conditions are met. See Prop 19 explained.
TOD Deed vs. Living Trust
| TOD deed | Living trust | |
|---|---|---|
| Cost to set up | Low | Higher (usually attorney-prepared) |
| Avoids probate | Yes, for the house | Yes, for assets in the trust |
| Covers other assets | No | Yes |
| Handles incapacity | No | Yes, through the successor trustee |
| Complexity | Simple form | More paperwork |
For a simple situation with one house and clear beneficiaries, a TOD deed can work well. For more complex families or estates, many people prefer a living trust. An estate planning attorney can help you choose.
If You Inherited a House Through a TOD Deed
Here’s what heirs typically need to do after the owner passes away:
- Get certified copies of the death certificate.
- Record an affidavit of death (and any other documents the county requires) with the county recorder to confirm the transfer.
- Notify the other heirs as the law requires. There are notice rules, so check with the recorder or an attorney.
- File property tax forms with the county assessor, including a change in ownership report and any Prop 19 claim if you’ll live there.
- Handle the mortgage, insurance, and taxes. The house may still have a loan that needs to be paid.
Once the transfer is recorded, the beneficiary generally owns the house and can sell it without going to court. Title companies may still ask for specific documents, and some may want to wait until the creditor situation is clear, so start the paperwork early.
Selling a House You Inherited Through a TOD Deed
Many beneficiaries don’t want to keep the house, especially if they live out of the area, the house needs work, or several siblings share it. Your options are the same as with any inherited home: fix it up and list it, list it as-is, or sell it as-is for cash.
When we buy these homes, we work directly with the family and the title company. You can take what you want from the house, and we’ll donate what we can and dispose of the rest. If you live out of state, you usually don’t need to travel to sign.
For the full process, see our guide on how to sell an inherited house in California.
Frequently Asked Questions
It’s a recorded deed that lets a California homeowner name a beneficiary to receive their home when they die, without probate. The owner keeps full control during their lifetime and can revoke the deed at any time.
Yes, for the house it covers. After the owner’s death, the beneficiary can take title by recording an affidavit of death and related documents, instead of going through probate court.
Yes. Under current California law, a TOD deed generally must be signed in front of a notary and two witnesses, and recorded within 60 days of signing. Check your county recorder’s instructions or ask an attorney.
Usually, yes. Once the transfer is recorded after the owner’s death, the beneficiary generally owns the house and can sell it without court approval. The title company may require certain documents first.
It depends. A TOD deed is cheaper and simpler for passing on one house. A living trust covers more assets and handles incapacity. An estate planning attorney can help you decide.
Inherited a House? Let’s Talk
If you’ve inherited a house through a TOD deed and aren’t sure whether to keep it or sell, we’re happy to talk it through, with no pressure. We can give you a free, no-obligation cash offer so you have a real number to compare. Call Lawrence at (510) 824-8710 or fill out the form below.