California Allows Transfer on Death Deeds Transfer on Death Deeds (TODDs): Are They Allowed in California?

California allows Transfer on Death (TOD) Deeds, but not Ladybird Deeds, to transfer real estate at death and avoid probate.

Here's how TOD deeds work in California:

• Process:

  1. You fill out a TOD deed form, naming your beneficiary/ies.
  2. The form needs to be notarized and signed by two witnesses.
  3. You record the completed form with the County Recorder's Office.
  4. You retain full control of the property during your lifetime.
  5. Upon your death, the property automatically transfers to the beneficiary/ies, bypassing probate.

• Relevant Statutes: California Probate Code Sections 5600-5644 govern TOD deeds, and provides a statutory form.

• Forms: You can find the California TOD deed forms at the Sacramento Law Library website.

• County Recorder's Office: Many county recorder's offices in California also offer TOD deed forms on their websites. Searching for "Tulare County TOD Deed" might lead you to the official form.

Key points to remember:

• Since 2022, each owner must complete their own TOD deed (separate forms for married couples).
• The form needs to be recorded within 60 days of being notarized.
• You can revoke a TOD deed if your circumstances change.

Alternative for more complex situations:

While TOD deeds are a good option for simple transfers, for more complex situations, consider a revocable living trust, which also avoids probate but offers more control and flexibility. Consulting an estate planning attorney is recommended for such cases.

Using California Revocable TOD Deeds

If you live in California and are thinking about a transfer on death deed, the place to start is this video from the Sacramento Law Library, which does an excellent job of explaining California's transfer on death law, which been in effect since January 2016, and revised in 2022.*

Sacramento Law Library Video: 
Part 1 Intro and TOD Deed Overview

Tramsfer on death deeds can be an ideal tool for California is looking for a simple way to transfer real estate. 

Here's a complete toolkit for using TOD Deeds in Calfornia offered by the Sacramento Law Library.

(* As of Jan. 1, 2022, California TOD deeds must now be signed by two witnesses, and after the donor dies, the beneficiaries must notify all heirs and file multiple papers. Beneficiaries who are transferring real estate into their name should use their guide Transferring Title to Beneficiaries after a Transfer on Death Deed Takes Effect.)

If you're lucky enough to own your primary residence in one of the 30 states that offer TOD (Transfer on Death) Deeds, it's a great way to transfer your house and avoid probate without the need of a living trust. 

• Nolo offers an excellent overview of how to use transfer and death deeds, and how a new owner claims TOD real estate. 
• eForms offers Transfer on Death Deeds for 30 different states.
• WillMaker, now includes Transfer on Death Deeds as part of the WillMaker package, 

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How to Use a TOD Deed:

1. Determine Eligibility: First, ensure that the state in which the property is located allows TOD deeds.

2. Obtain a TOD Deed Form: You can find forms online or get one from a local attorney. Some county recorders' offices might also provide these forms.

3. Complete the Form: You'll typically need to provide details such as the legal description of the property, the current property owner's details, and the beneficiary's details.

4. Notarize: Most states require the deed to be notarized. This means signing the deed in the presence of a notary public.

5. Record the Deed: Once completed and notarized, the TOD deed must be recorded with the county recorder's office where the property is located. There might be a small fee associated with this.

6. Revocation or Change: If you change your mind later on about the beneficiary or wish to revoke the TOD deed, you usually can. This typically involves recording another document (often another deed) that changes or cancels the earlier filed TOD deed.

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States That Allow Transfer on Death Deeds (as of 2022):

Western states and Midwestern States allow them, but not so much in the Northeast.

1. Alaska
2. Arizona
3. Arkansas
4. California
5. Colorado
6. District of Columbia
7. Hawaii
8. Illinois
9. Indiana
10. Kansas
11. Maine
12. Minnesota
13. Mississippi
14. Missouri
15. Montana
16. Nebraska
17. Nevada
18. New Mexico
19. North Dakota
20. Ohio
21. Oklahoma
22. Oregon
23. South Dakota
24. Texas
25. Utah
26. Virginia
27. Washington
28. West Virginia
29. Wisconsin
30. Wyoming

Some other states might have similar mechanisms but under different names or procedures. It's always wise to consult local legislation or a local attorney to understand the current rules in a particular state.

Ladybird Deeds

A Lady Bird deed, often referred to as an "enhanced life estate deed," is a legal document that changes the rights to real estate property ownership. It allows the owner (grantor) to retain complete control over the property during their lifetime, including the ability to sell, lease, or mortgage the property without the beneficiary's consent. Upon the grantor's death, the property automatically transfers to the beneficiary without having to go through probate.

Key features of a Lady Bird deed:

1. Control: The grantor maintains full control over the property during their lifetime.
2. Avoidance of Probate: Upon the grantor's death, the property transfers directly to the beneficiary without the need for probate.
3. Flexibility: The grantor can change the beneficiary or sell the property without the beneficiary's consent.
4. Tax Benefits: In many cases, because the transfer is only effective upon death, the grantor doesn't incur gift tax, and the beneficiary can benefit from the "step-up" in basis, which can reduce capital gains taxes if they later sell the property.

States That Allow Lady Bird Deeds (as of 2022): While the use and formal recognition of Lady Bird deeds vary by state, they are most commonly associated with and used in:

1. Florida
2. Texas
3. Michigan

Other states may have similar mechanisms or might recognize the concept, but the specific rules, nomenclature, and characteristics might differ.

If you're considering using a Lady Bird deed or any other estate planning tool, it's essential to consult with an attorney familiar with real estate and estate planning laws in your state. They can provide tailored advice and ensure that all documents are prepared and recorded correctly.

AI Prompts for More About TOD or Ladybird Deeds in California

Prompt: Does California allow Transfer on Death (TOD) or Ladybird Deeds to transfer real estate at death without requiring probate? And if California allows either one, Can you explain how the process works in California, cite relevant statutes, and link where I can get the correct forms for California?

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