Transfer on Death Deed in California: How It Works

A retired teacher in Hayward called us last spring. Her husband had passed, the house was paid off, and she wanted one thing: for her daughter to get the home without a year stuck in probate court. Someone at her bank had mentioned a "transfer on death deed." She wasn't sure it was a real thing.

It's real. California has allowed a transfer on death deed since 2016, and it does exactly what she hoped. It's one of the simplest ways to pass a single home to one heir without probate. It also has limits that catch people off guard, plus a few things your heirs will deal with after you're gone.

The short version

• A transfer on death deed (also called a TOD deed) names who gets your house when you die.
• The home skips probate and passes straight to the person you name.
• You stay the full owner while you're alive. You can sell, refinance, or cancel it anytime.
• It must be signed, notarized, witnessed, and recorded with your county to count.
• It only covers homes with one to four units, a condo, or a small farm. Not apartment buildings, not commercial property.

This isn't legal or tax advice. Confirm with your CPA or attorney before you file anything.

What is a transfer on death deed in California?

A TOD deed is a one-page document that says, in effect, "When I die, this house goes to this person." You record it now, while you're alive, but it doesn't do anything until you pass.

That last part matters. You keep complete control of the home. The person you name has no rights to the property while you're alive. They can't borrow against it, move in, or stop you from selling.

When you die, the house transfers to the named beneficiary automatically. No probate case, no court hearing, no judge signing off. For a homeowner with one house and one clear heir, that's a clean result.

How do you create and record one?

The steps are straightforward, but each one matters. Miss one and the deed may not hold up.

1. Get the right form. California has an official statutory transfer on death deed form. Use that one, not a generic template off the internet.
2. Describe the property correctly. You need the full legal description from your current deed, not just the street address. Pull your grant deed or get it from the county recorder.
3. Sign in front of a notary and two witnesses. As of 2022, California requires two adult witnesses in addition to notarization. The witnesses can't be the person inheriting the home.
4. Record it within 60 days. Take the signed deed to your county recorder and record it within 60 days of signing. If you miss that window, it's void.
5. Pay the recording fee. This is small, usually $15 to about $100 depending on the county.

That's it. There's no filing with the state, no annual renewal, no probate court involvement while you're alive.

Can you change your mind later?

Yes, anytime. A TOD deed is fully revocable. You're never locked in.

There are three common ways to undo or change it. You can record a formal revocation form. You can record a new TOD deed naming a different person, which overrides the old one. Or you can sell the house, which cancels the deed because there's nothing left to transfer.

One quiet trap: a TOD deed is not updated by your will. If your will says the house goes to your son but a recorded TOD deed names your daughter, the deed usually wins. Keep the two documents in sync.

What do your heirs deal with after you die?

This is the part most articles skip. The transfer is easy. What comes after takes a little work.

The person you named has to record proof of your death and an ownership-change statement with the county. That step is simple and inexpensive, but it does have to happen before they can sell or refinance.

Your debts don't disappear. For a period after death, your creditors can still reach the home to collect what you owed. In California that exposure can run up to three years. Any mortgage also stays with the house. Your heir takes the home subject to the loan and the debts, not free and clear of them.

There's good news on taxes. An inherited home gets a stepped-up basis, so your heir's capital-gains clock usually starts at the home's value on the date you died, not what you paid decades ago. Prop 19 is the harder one: unless your heir moves in and meets the rules, the property tax often gets reassessed to current value, which can triple the annual bill.

Marcus in Vallejo learned this the practical way. He inherited his mom's 1950s house through a TOD deed, recorded the paperwork in a couple of weeks, then realized the home needed a new roof and 30 years of deferred maintenance. He didn't want a six-month listing project. We closed in 11 days and paid 100% of the closing costs.

TOD deed vs. living trust vs. joint tenancy

A TOD deed is one of three common ways to keep a home out of probate. Here's how they compare for a California homeowner.

For one house and one heir, the TOD deed is the cheapest, simplest option. For more moving parts, a trust usually earns its higher cost.

When a TOD deed isn't the right tool

A TOD deed is a hammer for one specific nail. It's the wrong tool for a lot of jobs.

If you own more than one property, have a blended family, want to leave the home to several people who'll have to agree on everything, or want to name a backup if your first heir dies before you, a living trust handles all of that better. The same goes if a beneficiary is a minor or can't manage money on their own.

A trust costs more up front, but it can save your family a far bigger headache later. If your situation is anything beyond "one home, one clear heir," talk to an estate attorney before you record a TOD deed. We're cash home buyers, not lawyers, and we'll be the first to tell you when you need one.

Frequently asked questions

Does a TOD deed avoid probate?

Yes. A properly recorded transfer on death deed passes the home straight to your named beneficiary when you die, with no probate case. That's its whole purpose. It does not avoid Prop 19 reassessment, capital-gains rules, or the mortgage.

Can I change my mind after I file it?

Anytime. You can record a revocation, record a new TOD deed naming someone else, or sell the home, which cancels it. The person you named has no say while you're alive.

Can my heirs sell the house right away?

Pretty much. After recording the death certificate and an ownership-change statement, your heir can sell. They take the home subject to any mortgage and to your debts for a period after death, so a quick title check is smart before closing.

TOD deed or living trust, which is better?

For one home going to one heir, a TOD deed is cheaper and simpler. For multiple properties, several heirs, blended families, or backup beneficiaries, a living trust is usually the better fit. An estate attorney can tell you which suits your situation.

What to do now

If you're planning ahead, your two honest paths look like this:

1. Set up the right document. For one home and one heir, ask an attorney or a title company about a transfer on death deed. For anything more complex, price out a living trust. Get it recorded correctly so your family isn't stuck in court later.
2. If you've already inherited a home and want out, call us. We've been buying Bay Area homes since 2009, more than 2,000 of them, and we buy as-is. No repairs, no cleanout, no agent commission. We pay 100% of the closing costs and can close in 3 to 7 days, on your timeline.

Talk to a real person, not a chatbot. Call or text 415-800-1415, or fill out the short form to get a cash offer. No pressure, ever.

If the home you're inheriting is already held in a trust, here's what that sale looks like: selling a house in a trust in California. If a loved one passed without a deed or trust and the house is headed to court, we can still help, see selling a house in probate in the Bay Area. Or get a no-obligation cash offer in 24 hours.