If you own a home in California and you are trying to figure out the simplest way to pass it to your kids or a loved one when you die, you have probably heard about living trusts. Trusts work well, but they cost $2,000 to $5,000 to set up properly and require ongoing maintenance. A lot of homeowners I talk to ask whether there is a simpler option. For many of them, the answer is yes: California's Revocable Transfer on Death Deed, authorized under Cal. Probate Code SS5600-5696. This guide explains exactly what it is, how it works, where it falls short, and how to decide whether it is right for your situation.
This article is for informational purposes only. I am a real estate professional, not an attorney. Nothing here constitutes legal advice. Estate planning decisions (including whether to use a TOD deed, a living trust, joint tenancy, or another tool) should be made in consultation with a licensed California estate planning attorney. Laws change and individual circumstances vary. Please consult qualified legal counsel before taking any action.
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What Is a Transfer on Death Deed?
A Revocable Transfer on Death Deed (RTDD) is a legal document that lets a California homeowner name one or more beneficiaries to receive their real property automatically upon death, without going through probate court. It was created by the California Legislature in 2016 under Cal. Probate Code SS5600-5696 as a lower-cost alternative to a living trust for homeowners with simpler estates.
The deed is recorded with the county during the owner's lifetime but has zero effect on ownership until death. You keep full control of the property. You can sell it, refinance it, get a reverse mortgage, rent it, remodel it, or change the beneficiary at any time. The deed only "activates" the moment you die, at which point the named beneficiary can claim title without a probate proceeding.
Unlike a will, which must go through probate (a court process that can take 12 to 18 months in Los Angeles County and costs 4% to 8% of the gross estate value), a TOD deed transfers title automatically. The beneficiary records a simple affidavit and a death certificate, and the property is theirs. That is the appeal.
A TOD deed handles exactly one asset: the specific real property named on the deed. It does not cover bank accounts, investment accounts, personal property, business interests, or any other real estate. If you own multiple properties or want comprehensive estate planning, a trust is almost certainly the better tool.
How a California TOD Deed Works
The process works in three phases: execution, ownership period, and post-death transfer. Here is how each phase looks in practice.
Phase 1: Execution and Recording
Step 1: Fill Out the Statutory Form
California provides a standardized form for the TOD deed (Cal. Probate Code SS5642 includes the statutory form). The form asks for: the property's legal description (from your grant deed or assessor's records), the transferor's name(s), and the beneficiary's name(s). Since SB 315 (effective January 1, 2022), you can name natural persons, trusts, corporations, partnerships, or other legal entities as beneficiaries.
Step 2: Sign Before a Notary and Two Witnesses
Under SB 315, the form must be signed by the property owner, acknowledged before a California notary public, and signed by two witnesses. This two-witness requirement was added to protect older homeowners from fraud. All three elements are required or the deed is void.
Step 3: Record Within 60 Days
The signed and notarized deed must be recorded with the County Recorder's office in the county where the property is located within 60 days of the date of notarization. If you miss the 60-day window, the deed is void and must be re-executed. Recording fees range from approximately $21 (simple document) to $100+ depending on the county and number of pages.
Phase 2: During Ownership (Nothing Changes)
Once recorded, the TOD deed sits in the public record but has no legal effect on your ownership. You retain full rights. Your beneficiary has no rights, no interest, and no ability to take any action with respect to the property. You can refinance, sell, or revoke the deed at any time. No beneficiary permission is needed. Lenders can still issue loans. You can still claim the homestead exemption. Nothing changes in your day-to-day ownership.
If the property is already held in joint tenancy or community property with right of survivorship, and a co-owner is still alive at your death, the survivorship rights of the joint tenancy override the TOD deed. The TOD deed only controls what happens to your share if there is no surviving joint owner.
Phase 3: After Death, Title Transfers Automatically
When the property owner dies, the beneficiary named in the TOD deed can claim title by recording two documents: (1) a notarized Affidavit of Death of Transferor, and (2) a certified copy of the death certificate. Once recorded, the beneficiary is the new owner. No court. No probate. No judge. The entire process can be completed in a matter of weeks rather than 12 to 18 months of probate.
However, the new owner's title is not entirely clear immediately. There is a 120-day creditor claim window (discussed in the Cons section) during which creditors of the deceased can make claims against the property. Title insurance companies are aware of this window, and most will wait until it closes before issuing a clean title insurance policy to a buyer.
The Pros: Why a TOD Deed Can Be a Smart Move
Advantages
- Extremely low cost. The state-provided form is free. Recording costs $21 to $100 depending on the county. No attorney required, though consulting one is advisable. Compare that to $2,000 to $5,000 or more for a living trust.
- Probate avoidance. At death, title transfers directly to the beneficiary by recording an affidavit. No court involvement, no waiting 12-18 months, no 4%-8% probate fees.
- Fully revocable during life. Under Cal. Probate Code SS5625, the property owner can revoke a TOD deed at any time simply by recording a revocation form. No beneficiary permission needed. No reason required. Life circumstances change, and the TOD deed accommodates that.
- No loss of control during life. You retain all ownership rights. You can sell, refinance, get a reverse mortgage, rent, or change the beneficiary without restriction. The beneficiary has zero current rights.
- Prop 13 and Prop 19 preservation. A TOD deed is a transfer at death. When the property transfers to a child who makes it their primary residence within one year, they may qualify for the Prop 19 parent-child exclusion, preserving the parent's lower assessed value (subject to the 2026 threshold of $1,044,586 above the parent's assessed value). Additionally, the child receives a stepped-up income tax basis to the date-of-death fair market value, potentially eliminating capital gains tax on years of appreciation.
- No impact on Medi-Cal recovery (with caveats). Unlike assets in some other transfer structures, property transferred via TOD deed may be subject to Medi-Cal estate recovery claims, but the rules are complex and subject to change. Consult an elder law attorney if this is a concern.
The Cons: Where TOD Deeds Fall Short
Disadvantages
- Residential 1-4 units only. Cal. Probate Code SS5600 limits TOD deeds to residential real property with one to four dwelling units, including condominiums, that the transferor uses as their primary residence. Commercial buildings, apartments with five or more units, raw land, and vacation homes that are not the primary residence are excluded. If you own a fourplex and live in one unit, it qualifies. A commercial strip center does not.
- 120-day creditor claim window. Under Cal. Probate Code SS5642, creditors of the deceased have 120 days after the date of death to file a court proceeding to recover debts from the transferred property. Beyond that window, under Cal. Probate Code SS5670, the property can remain liable for unsecured debts for up to three years. This creditor exposure creates a cloud on title that can complicate a near-term sale.
- Cannot manage property during incapacity. If you become incapacitated before death, the TOD deed provides no mechanism for your beneficiary to manage, sell, or use the property to pay for your care. A living trust paired with a trustee can do this. A TOD deed cannot. You would still need a separate durable power of attorney to address incapacity planning.
- Can be challenged. Like any deed, a TOD deed can be contested on grounds of lack of capacity, undue influence, or fraud. SB 315 added witness requirements partly to address this risk, but it does not eliminate it. A trust created with proper formalities and legal counsel is generally harder to contest.
- Joint tenancy override. If the property has a surviving joint tenant at death, the joint tenancy survivorship rights override the TOD deed. The TOD deed is irrelevant in that scenario unless you first sever the joint tenancy.
- No management instructions. A living trust can include detailed instructions about how the property is managed, when it can be sold, how proceeds are split, and protections for minor beneficiaries. A TOD deed simply names who gets it. Nothing more.
- Multiple beneficiaries create co-ownership problems. If you name two children as 50/50 beneficiaries and they disagree about what to do with the property, neither can force the other without a partition action in court. A trust can include language resolving this in advance.
- Sunset provision. The TOD deed statute is set to expire on January 1, 2032 unless the Legislature renews it. TOD deeds executed before that date remain valid after any repeal, but the uncertainty is worth knowing.
This is the issue most homeowners are surprised by. Under Cal. Probate Code SS5670, a beneficiary who receives property via TOD deed can face creditor claims against that property for up to three years after the transferor's death. If the estate has significant unpaid debts (medical bills, credit cards, tax liens), the new owner may inherit a property with claims attached to it. This is a key reason why beneficiaries sometimes cannot sell immediately after death, even without probate.
When a TOD Deed Is a Good Fit
A TOD deed tends to work best for homeowners in specific situations. Based on the clients I work with across Pasadena, Glendale, Arcadia, and the broader San Gabriel Valley, here are the scenarios where it genuinely makes sense:
Single homeowner, one primary residence
You own one home. You live in it. You want it to go to one or two family members when you die without probate. No other major assets to coordinate. This is the sweet spot for a TOD deed.
Simple estate, one clear beneficiary
Your entire estate is essentially one house. Your beneficiary is one adult child or a spouse you trust completely. No complex splits, no minor children, no concerns about the beneficiary's creditors attaching to the property.
Cost-conscious planning for a straightforward situation
You cannot afford or do not want to spend $2,000 to $5,000 on a trust right now. Your situation is simple. A TOD deed, done correctly, is a legitimate probate-avoidance tool for people in this position.
Bridge until a trust is established
You intend to create a trust but have not gotten around to it. A TOD deed can serve as a temporary backstop while you get your full estate plan in place. It is revocable, so you can pull it when the trust is done.
When a TOD Deed Is the Wrong Tool
I want to be direct here because I have seen homeowners use a TOD deed when it was clearly the wrong fit, and their beneficiaries paid the price. Here are the situations where you need a trust, not a TOD deed:
Multiple beneficiaries with potentially conflicting interests
If you name three adult children on a TOD deed and they disagree about whether to sell the property, rent it, or keep it, you have created a co-ownership dispute with no roadmap for resolution. A trust lets you specify exactly what happens and even appoint a trustee to make binding decisions.
Minor beneficiaries
You cannot leave real property directly to a minor child. If your TOD beneficiary is under 18, the court will need to appoint a guardian of the estate to manage the property until they come of age. A trust can hold the asset and provide clear management instructions throughout childhood.
Investment properties or commercial real estate
TOD deeds only cover 1-4 unit primary residences. If your estate includes apartment buildings, commercial properties, raw land, or vacation homes that are not your primary residence, those assets still require probate without a trust to hold them.
Complex estate with significant other assets
If your estate includes a business, investment accounts, multiple properties, or significant personal property, you need a comprehensive plan that coordinates all those assets. A TOD deed only handles one piece of real estate. Everything else goes through probate without a trust.
Incapacity is a concern
If you are worried about who manages the property if you become unable to do so, a living trust with a named successor trustee is the right answer. The TOD deed does absolutely nothing to address incapacity during your lifetime.
Beneficiary has creditor problems or is financially vulnerable
If the person you want to leave the property to has judgments, liens, or creditors of their own, property transferred via TOD deed goes directly into their name and becomes immediately accessible to their creditors. A trust can provide asset protection structures that a TOD deed cannot.
TOD Deed vs. Living Trust vs. Joint Tenancy
This is the table I wish every homeowner could see before making this decision. Each tool has a different job. None of them is universally better.
| Factor | TOD Deed | Living Trust | Joint Tenancy |
|---|---|---|---|
| Avoids Probate | Yes | Yes | Yes (while survivor lives) |
| Cost to Create | $21-$100 recording fee | $2,000-$5,000+ (attorney) | ~$50-$150 deed recording |
| Covers Multiple Assets | No (one property only) | Yes (any asset) | No (property by property) |
| Incapacity Planning | No | Yes (successor trustee) | Partial (co-owner manages) |
| Beneficiary's Rights While Owner Lives | None | None (revocable trust) | Full co-ownership rights |
| Creditor Exposure After Death | 120 days + up to 3 years | Trust assets better protected | Passes to survivor directly |
| Tax Basis Step-Up at Death | Yes (full step-up) | Yes (full step-up) | Yes (partial: 50% step-up for community property) |
| Prop 19 Parent-Child Exclusion Eligible | Yes (if requirements met) | Yes (if requirements met) | Yes (lifetime transfer may trigger reassessment) |
| Can Name Multiple Beneficiaries | Yes (creates co-ownership) | Yes (with trustee management) | Yes (all become joint tenants) |
| Revocable | Yes (by owner alone) | Yes (revocable trust) | Yes (sever joint tenancy) |
| Risk of Contestation | Moderate | Lower (with proper execution) | Low (survivorship automatic) |
| Works for Commercial / 5+ Units | No | Yes | Yes |
| Attorney Required | Not required (advisable) | Strongly recommended | Not required (advisable) |
| Sunset Provision | Expires Jan 1, 2032 (unless renewed) | No sunset | No sunset |
Adding your child as a joint tenant on your home gives them immediate co-ownership rights. Their creditors can attach liens to their 50% interest. Refinancing requires their signature. If they go through a divorce, their interest could become subject to community property division. A TOD deed avoids all of that because the beneficiary has zero current rights.
Ready to move forward? Let's talk.
How to File a California TOD Deed
Step 1: Get the Statutory Form
The California Judicial Council provides a standardized form (DE-310 or the form referenced in Cal. Probate Code SS5644). You can download it free from the California Courts website or obtain it from the County Recorder's office. Some estate planning attorneys include form preparation as part of a flat-fee service.
Step 2: Complete the Property Description
You need the legal description of your property, not just the street address. The legal description appears on your grant deed or in your title insurance policy. It includes the tract, block, and lot numbers used in county records. Copy it exactly. Errors in the legal description can make the deed ambiguous.
Step 3: Identify Your Beneficiary Clearly
Name each beneficiary by their full legal name. You may also specify alternate beneficiaries to receive the property if a primary beneficiary dies before you do. Since SB 315 (effective January 1, 2022), you can name trusts and legal entities, not just individuals.
Step 4: Sign Before Two Witnesses and a Notary
The property owner (transferor) must sign in the presence of two adult witnesses who are not the named beneficiaries, and the signature must be acknowledged before a California notary public. All three elements are required under SB 315. Missing any one of them voids the deed.
Step 5: Record Within 60 Days
Take the signed, notarized deed to the County Recorder's office in the county where the property is located. Record it within 60 days of the notarization date. The recording fee varies by county. Los Angeles County typically runs $21 to $75 for a standard document. Bring a government-issued ID and a check or credit card for the fee.
Los Angeles County Registrar-Recorder: norwalk.courts.ca.gov or in-person at 12400 Imperial Hwy, Norwalk. Hours vary. Additional filing locations available throughout the county. Call ahead to confirm current fees and requirements.
What Happens After the Property Owner Dies
The beneficiary's process after death is relatively straightforward but has several important steps and windows to manage carefully.
The Beneficiary's 120-Day Process
Immediate Steps (Days 1-30)
Obtain certified copies of the death certificate from the county registrar (typically $21 each, order 5-10). Prepare a notarized Affidavit of Death of Transferor, which confirms the property owner has died and identifies the TOD deed being activated. Record both the affidavit and the certified death certificate with the County Recorder.
Creditor Claim Window (Days 1-120 per Cal. Probate Code SS5642, up to 3 years per SS5670)
During the 120-day period after death, creditors of the deceased can file court proceedings to recover unsecured debts from the transferred property. The beneficiary should review the deceased's outstanding debts during this period. Under Cal. Probate Code SS5642, the beneficiary must also serve notice on the transferor's heirs within a specified time after death, using the statutory notice form provided by SB 315. Beyond the 120-day period, general unsecured creditors can still make claims for up to three years under Cal. Probate Code SS5670.
Lender Due-on-Sale Considerations
Federal law (the Garn-St. Germain Depository Institutions Act of 1982) exempts certain transfers from triggering a due-on-sale clause in a mortgage, including transfers to close family members when the borrower is deceased. However, the beneficiary should notify the lender and confirm the mortgage terms. If the beneficiary wants to keep the property, they will need to either assume the loan (if assumable) or refinance. If they plan to sell, the mortgage is typically paid off from sale proceeds.
Tax Basis Step-Up
Under federal tax law, property received at death receives a stepped-up income tax basis equal to the property's fair market value on the date of death. This means if the deceased bought the home 30 years ago for $200,000 and it is worth $1.2 million at death, the beneficiary's basis is $1.2 million. If they sell shortly after for $1.2 million, there is zero capital gains tax on 30 years of appreciation. This is one of the most significant tax benefits of any at-death transfer strategy.
Prop 19 and Property Tax Reassessment
If the beneficiary is the deceased's child and the property was the parent's primary residence, the child may qualify for the Prop 19 parent-child exclusion. This preserves the parent's lower assessed property tax base, provided the child makes the property their primary residence within one year. For 2026, the exclusion applies to the first $1,044,586 of market value above the parent's assessed value. Above that threshold, a partial reassessment applies. The child should file a Claim for Reassessment Exclusion (BOE-19-B) with the County Assessor promptly.
How to Revoke or Change a California TOD Deed
This is one of the most useful features of the TOD deed. Under Cal. Probate Code SS5625, a TOD deed is fully revocable at any time by the property owner, without needing any consent from the beneficiary. Here are the two main ways to revoke it:
Option 1: Record a Revocation Form
California provides a statutory Revocation of Revocable Transfer on Death Deed form. Complete the form, sign it before a notary, and record it with the County Recorder in the county where the property is located. The revocation is effective when it is recorded. No notice to the beneficiary is legally required, though it is generally advisable to communicate the change to maintain family relationships.
Option 2: Record a New TOD Deed
If you want to change the beneficiary rather than simply remove one, you can execute and record a new TOD deed naming the new beneficiary. The new deed supersedes the old one. However, to be safe and avoid ambiguity, it is best practice to also record a formal revocation of the prior deed at the same time or shortly before recording the new one.
What Does NOT Revoke a TOD Deed
A will does not revoke a TOD deed. A TOD deed is a non-probate transfer and is not controlled by a will. If your will says "I leave my home to my brother" but you have a TOD deed naming your daughter, the TOD deed wins. This surprises many people. Make sure your estate plan documents are consistent.
TOD Deed Updates: What Is Current in 2026
The California TOD deed law has been through several significant revisions since its 2016 introduction. Here is where things stand heading into 2026:
SB 315 (Effective January 1, 2022): Key Changes Still in Effect
Two-Witness Requirement Added
Before SB 315, a notary was sufficient. SB 315 added the requirement that two adult witnesses (who are not named beneficiaries) sign the deed. This was a direct response to elder financial abuse concerns.
Expanded Beneficiary Categories
Beneficiaries can now include trusts, corporations, partnerships, and other legal entities, not just individuals. This adds flexibility for homeowners who want to direct the property into a trust for beneficiary management.
120-Day Survival Requirement
For deeds executed on or after January 1, 2022, a beneficiary must survive the transferor by at least 120 days to inherit under the TOD deed. If the beneficiary dies within 120 days of the property owner, the property passes as if the TOD deed never existed (typically meaning it goes through probate under the will or intestacy laws).
Heirs Must Receive Notice
The beneficiary is now required to serve formal notice on the transferor's heirs after death, using a statutory notice form. This gives heirs the ability to challenge the deed if grounds exist.
Error Correction Provision
Courts can now correct certain procedural errors in a TOD deed if the transferor's intent is clear, rather than voiding the deed entirely. This adds a measure of protection for homeowners who made minor technical mistakes on the form.
Sunset: January 1, 2032
The TOD deed law is set to expire on January 1, 2032, unless the Legislature acts to extend it. TOD deeds recorded before any repeal remain valid. The Legislature has extended the law before and is likely to do so again, but the sunset provision is worth knowing for long-term planning.
As of April 2026, there is no pending California legislation specifically amending the TOD deed statutes beyond what SB 315 introduced in 2022. The framework is currently stable. Always confirm with a California estate planning attorney for the most current status, especially given the 2032 sunset deadline.
Ready to move forward? Let's talk.
TOD Deed Decision Cheat Sheet
| If your situation is... | Consider... |
|---|---|
| One home, one adult beneficiary, simple estate, limited debts | TOD deed (low cost, gets the job done) |
| Multiple properties, or property plus business, accounts, and other assets | Living trust (comprehensive coordination) |
| Minor children as beneficiaries | Living trust with trustee management instructions |
| Concern about your own incapacity | Living trust plus durable power of attorney |
| Commercial property or 5+ unit apartments | Living trust (TOD deed does not apply) |
| Beneficiary has creditor problems or financial instability | Spendthrift trust (specialized protection) |
| Want to pass Prop 13 base to a child who will live in the home | Either TOD deed or trust can work (Prop 19 applies to both) |
| Two surviving co-owners in joint tenancy | TOD deed has no effect while joint tenant survives |
| Planning a near-term sale after inheriting via TOD deed | Budget 4-6 months post-death before clean title insurance is available |
More on Trust Sales and Estate Planning in Southern California
If you are thinking through estate planning for your real estate, these articles cover adjacent topics that are relevant to how inherited and trust-held properties sell in the Los Angeles market:
- How to Sell Your House in Pasadena CA (2026): if a TOD deed beneficiary is ready to sell, this is the current Pasadena market playbook
- ADU Laws in Los Angeles (2026): if the property you are planning to transfer also has an ADU, understand what you are passing on
- Probate and Trust Sales Resources: full category of articles on estate-related real estate in Southern California
Transfer on Death Deed California: Frequently Asked Questions
Justin Borges
Team Lead, The Borges Real Estate TeamDRE #01940318
With over 13 years in Southern California real estate, Justin specializes in probate sales, trust properties, and character homes. His expertise in 1031 exchanges and historic preservation has helped hundreds of clients navigate complex real estate transactions.