Deeds FAQ

Questions:

• What is a deed? What type of deed -- grant, quitclaim, warranty -- should I use?
• How do you take ownership of property as tenants in common or as joint tenants? What's the difference?
• Does a deed have to be notarized, witnessed, or filed?
• Is a trust deed or a contract for deed an actual deed?
• What is a transfer-on-death deed?

Answer:

What is a transfer-on-death deed?

These deeds, often called TOD or beneficiary deeds, are like regular deeds except for one very important difference: They don’t take effect until your death. They’re used to leave real estate without probate court proceedings.

Using a TOD deed avoids probate because after your death, the beneficiary named on the deed takes ownership of the property immediately. There’s no probate paperwork or delay.

Filling out a TOD deed, which clearly states that it doesn’t take effect until your death, is like filling out a regular deed. You name the beneficiary, sign the deed, get it notarized, and file (record) it with your local property records office.

TOD deeds are currently allowed in 13 states: Arizona, Arkansas, Colorado, Indiana, Kansas, Minnesota, Missouri, Montana, Nevada, New Mexico, Ohio, Oklahoma, and Wisconsin. Be sure to use a deed form that contains all the elements required by your state. You can get state-specific downloadable Transfer-on-Death (Beneficiary) Deeds from Nolo.