Transfer on Death Deeds

Learn about transfer on death deeds in Oklahoma.

Transfer on Death Deeds (TODDs), colloquially referred to as Lady Bird Deeds in certain states, represent a unique and powerful tool for individuals to efficiently transfer real property upon their death. This legal instrument provides a means to designate beneficiaries who will inherit the property without the need for probate. However, this method requires proper drafting, signing, and filing to be effective. This strategy offers simplicity, flexibility, and control over your assets.

What is a transfer on death deed?

Traditional deeds that transfer property ownership immediately upon execution. TODDs maintain ownership in the name of the grantor during their lifetime, while specifying a beneficiary or beneficiaries who will inherit the property upon the grantor’s death.

What are the advantages of a transfer on death deed?

The primary benefit of using a transfer on death deed is the ability to avoid probate.

However, this benefit is limited to the property with a valid TODD that is properly recorded with the county clerk’s land records department which has a beneficiary that survives (or outlives) the grantor. Properly completed, a TODD functions similarly to a beneficiary designation on a financial account or life insurance policy.

What are the risks of using a transfer on death deed?

TODDs have a few key risks. Some of the most common risks are:

• The named beneficiary pre-deceases the grantor/principal and the TODD is not updated
• The TODD is not recorded in the land records with the proper county clerk’s office
• No one ever publicly records the TODD
• A title company handling a purchase and sale transaction of a property with a previously recorded TODD chooses to require the signature of the unvested TODD beneficiary in order to consent to a sale by the grantor/principal before their passing

How is a transfer on death deed different than a will?

A transfer on death deed only transfers one specific parcel of real estate at a time. A last will and testament (or a “will”) should properly identify which person or entity should take ownership of all of the deceased person’s assets.

What happens to a TODD after the grantor dies?

Upon the passing of the TODD grantor/principal, the TODD beneficiary should prepare and record an affidavit of surviving beneficiary in the county clerk’s office. This affidavit is very similar to an affidavit of surviving joint tenant.

Oklahoma Transfer On Death Deed Attorneys

Get help with transferring your property to your loved ones with a transfer on death deed or other methods. Contact Avenue Legal Group to discuss your property transfer.