When planning your estate, one of the biggest concerns you may have is what will happen to your home after you’re gone. Without the right documents in place, your loved ones could face a lengthy and expensive probate process before they can take ownership.
In Washington State, a transfer on death (TOD) deed offers a simpler way to pass real estate directly to a chosen beneficiary — helping your family avoid court delays and added costs.
What a transfer on death (TOD) deed does
A TOD deed allows you to keep full ownership of your property while you’re alive. You can sell it, mortgage it or revoke the deed at any time. Keep in mind that the beneficiary only gains ownership after your death.
Once that happens, they file your death certificate with the county recorder, and ownership of the real estate passes to them.
This process bypasses probate, which can save your heirs time and money. It also keeps your property transfer private since there’s no court proceeding involved.
Who can create a TOD deed
Any property owner in Washington can create a TOD deed as long as they are mentally competent and the deed meets state requirements. You must:
- Use the statutory form approved by Washington law
- Name one or more beneficiaries
- Sign the deed before a notary public
- Record the deed with the county auditor before your death
Failing to record the deed means it won’t be valid.
Pros and cons to consider
A TOD deed can be a convenient way to pass real estate to your heirs, but there are a few important drawbacks to keep in mind.
A TOD deed only applies to real estate, not personal property or bank accounts, and it doesn’t protect against creditors’ claims. In addition, if multiple beneficiaries are named, disputes can arise over how to manage or sell the property.
Therefore, before choosing this option, you may want to explore other ways to structure your assets and future plans with a professional.
Planning ahead with confidence
A TOD deed can be an effective estate planning tool if you want a straightforward way to pass your home to someone you trust.
Still, every situation is different. Consider speaking with a Washington estate planning attorney to make sure this option fits your goals and complements the rest of your estate plan.