Transfer-on-Death (TOD) Deeds are one of the most effective tools available in Oklahoma estate planning to transfer real estate directly to a loved one without going through the probate process. Under Oklahoma law, property owners can name a beneficiary who automatically receives title to the property upon the owner’s death—bypassing the time, cost, and stress associated with probate court. Understanding how Transfer-on-Death deeds work and how to create one correctly can help you ensure your home or property passes smoothly to the next generation.
What Is a Transfer-on-Death Deed?
A Transfer-on-Death Deed (TOD Deed) is a legal document that allows a property owner to name one or more beneficiaries who will inherit real estate automatically at the owner’s death. The property owner continues to own and control the property during their lifetime. The transfer only occurs after death, making this a flexible and powerful estate planning tool.
Oklahoma is one of the states that recognizes TOD deeds under the Nontestamentary Transfer of Property Act.
Key Features of a Transfer-on-Death Deed in Oklahoma
Several unique features make TOD deeds particularly useful for property owners in Oklahoma City:
- Avoids Probate: Property passes directly to the named beneficiary without requiring court approval.
- Fully Revocable: You may revoke or change your TOD deed at any time during your life.
- No Rights for the Beneficiary Until Death: The beneficiary has no ownership or control of the property while you are alive.
- No Impact on Mortgages or Taxes: A TOD deed does not trigger mortgage clauses, capital gains, or property tax reassessments.
- Maintains Control: You can still sell, refinance, or lease the property at any time without your beneficiary’s permission.
How to Create a Transfer-on-Death Deed in Oklahoma City
To create a valid TOD deed under Oklahoma law, you must follow specific legal requirements.
- Prepare the Deed:
The deed must clearly identify the property and name one or more beneficiaries. You may use the statutory form or have an attorney draft one tailored to your estate plan. - Sign and Notarize:
You must sign the TOD deed in the presence of a notary public. This signature confirms that the deed is voluntary and properly executed. - Record with the County Clerk:
The deed must be recorded in the Oklahoma County Clerk’s Office (or in the county where the property is located) before the owner’s death. An unrecorded TOD deed has no legal effect.
You may also name multiple beneficiaries or designate contingent beneficiaries in case a primary beneficiary predeceases you. Recording a TOD deed does not limit your ability to manage your property during life—the transfer only takes effect upon death.
The Benefits of Using a TOD Deed in Estate Planning
A Transfer-on-Death Deed offers several advantages for Oklahoma City residents, particularly those seeking to simplify the estate process:
- Streamlines Property Transfer: Eliminates probate delays for real estate.
- Reduces Legal Costs: Avoids probate fees and related attorney expenses.
- Protects Privacy: Keeps property transfers out of public probate records.
- Simple and Reversible: Easier and more flexible than setting up a trust for a single property.
While TOD deeds are efficient, they work best as part of a comprehensive estate plan that considers other assets, debts, and long-term family needs.
Oklahoma City Estate Planning Attorneys
Using a Transfer-on-Death Deed can be an excellent way to ensure your home or real estate passes directly to your loved ones without court involvement. However, careful drafting and filing are essential to avoid errors that could invalidate the deed. If you want to explore your options, our estate planning team at OKC Attorneys can help. Call us today at 405-367-8710 or ask a question online.
