03/23/2026
Thinking about your estate plan and what will happen to your home?
A transfer-on-death deed lets you name a beneficiary directly on the deed while keeping full ownership and control during your lifetime.
At death, the home passes to that beneficiary outside probate. No court involvement, no waiting months for a judge to approve the transfer.
A revocable living trust is another alternative.
A living trust can hold the home plus other assets and names a successor trustee who can step in if you become incapacitated. A TOD deed only controls what happens to that one property at death.
A TOD deed is usually cheaper and simpler to set up than a living trust, though actual costs vary. A trust costs more up front but covers a broader estate plan.
Adding a child to the deed as a joint tenant can avoid probate, but it creates immediate co-ownership. That can expose the property to the child's creditors, divorce proceedings, or lawsuits, and it may create a reportable gift for federal gift-tax purposes depending on the value transferred. It can also have capital gains tax consequences in certain instances.
Both a TOD deed and a revocable living trust generally preserve a step-up in basis at death because the owner keeps control during life. Adding a child to title during life can produce different tax results because gifted interests generally carry over the original cost basis instead of getting a fresh one.
Have questions? Want to discuss your estate plan? Give me a call, I'd love to help.
