Is a Transfer-on-Death Deed a Good Idea in California?

Sometimes, but it is a narrow tool. A California transfer-on-death deed (TOD deed) — a revocable deed that names a beneficiary to receive one residential property at your death without probate — can work for a simple situation (Prob. Code §5600 et seq.). Since the law was revised by SB 315, effective January 1, 2022, it must be signed before a notary and two witnesses and recorded within 60 days, and the statute is set to sunset on January 1, 2032 (current as of 2026). For most people a funded living trust is more robust.

What a California TOD deed is

A TOD deed lets you name a beneficiary who automatically receives one piece of residential real property when you die, without that property going through probate — the court process for transferring a decedent’s assets. It is revocable, so you can change or cancel it any time while you are alive, and it has no effect until death, so the beneficiary gets nothing and no ownership rights until then (Prob. Code §5600 et seq.).

It works only for limited residential property — a home of one to four units, a condominium, or a small agricultural parcel. It cannot be used for commercial real estate, brokerage accounts, or anything but qualifying real property.

The execution rules changed in 2022 — get them right

SB 315 (Stats. 2021 ch. 215), effective January 1, 2022, tightened how a TOD deed must be created. Miss a step and the deed is void:

• Notary and two witnesses. The deed must be signed and dated before a notary and two witnesses present at the same time (Prob. Code §5624). This witness requirement is new — a witness-less deed signed after January 1, 2022 is invalid.
• Record within 60 days. The deed must be recorded with the county recorder within 60 days of signing, or it is void (Prob. Code §5626).
• It sunsets 1/1/2032. The entire TOD-deed law is currently scheduled to be repealed on January 1, 2032 unless the Legislature extends it (Prob. Code §5600). Deeds properly recorded before that date remain valid.

What AI answers get wrong. Automated tools frequently recite the pre-2022 rules with no witness requirement, or claim the law is permanent. Both are wrong: two witnesses are now mandatory, and the statute sunsets on January 1, 2032.

Why it is weaker than a trust

A TOD deed avoids probate on one home, but it leaves real gaps:

• One property only. It covers a single qualifying residence. Own more than one property, or non-real-estate assets, and it does nothing for the rest.
• No help for incapacity. A TOD deed operates only at death. If you become incapacitated, it provides no way to manage the property — you would still need a power of attorney or a trust.
• Creditor and heir exposure. The beneficiary takes the property subject to the decedent’s debts, and there is a post-death window during which the transferor’s creditors and heirs can reach it. Title insurers are often reluctant to insure during that window.
• No coordinated plan. A trust can hold every asset, name backups, handle incapacity, and control timing of distributions. A TOD deed does none of that.

A TOD deed does avoid probate-based Medi-Cal estate recovery, because recovery reaches only probate assets — that is a genuine benefit. But it does not avoid a Proposition 19 reassessment analysis, and it is generally a partial fix, not a substitute for a full plan.

Frequently asked questions

How do you make a transfer-on-death deed valid in California?

Since January 1, 2022, the deed must be signed and dated before a notary and two witnesses present at the same time (Prob. Code §5624), and recorded with the county recorder within 60 days of signing or it is void (Prob. Code §5626). Deeds signed after 2022 without two witnesses are invalid, which is a common and costly mistake.

Does a TOD deed avoid probate in California?

Yes. A properly executed and recorded TOD deed passes the named residential property to the beneficiary at death without probate, the court process for transferring a decedent’s assets (Prob. Code §5600 et seq.). That is its main advantage. It does not, however, help with incapacity or with any asset other than the single property it names.

Is a TOD deed better than a living trust?

Usually not. A TOD deed covers only one residential property, provides no incapacity protection, and exposes the beneficiary to the decedent’s creditors. A funded living trust can hold all assets, manage incapacity, name successor beneficiaries, and control distributions (Prob. Code §5600 et seq. limits the deed to qualifying residential property). For most people the trust is the more complete tool.

Is the California TOD deed law permanent?

No. The transfer-on-death deed statute is currently set to be repealed on January 1, 2032 unless the Legislature extends that date (Prob. Code §5600). Deeds properly recorded before the sunset remain valid, but the tool may not exist for new deeds after that date. This is another point AI answers routinely get wrong by claiming the law is permanent.

Can I revoke a transfer-on-death deed?

Yes. A TOD deed is revocable during your lifetime (Prob. Code §5600 et seq.). You can revoke it by recording a revocation, by recording a new TOD deed, or by transferring the property, and the beneficiary has no rights until your death. Because it can be changed at any time, it gives the beneficiary no present interest while you are alive.

Does a TOD deed protect against Medi-Cal estate recovery?

Yes, because it avoids probate. For deaths on or after January 1, 2017, California Medi-Cal estate recovery reaches only probate assets (Welf. & Inst. Code §14009.5), so property that passes by a recorded TOD deed is outside recovery. The beneficiary still takes subject to the decedent’s other debts, so it is protection against recovery, not against all claims.

Related reading: will vs. living trust in California, Medi-Cal estate recovery, what a living trust costs, and incapacity planning.

Written by Eric D. Ridley. Estate Planning Attorney at Ridley Law, serving Ventura County since 2010. Learn more about Eric →