A transfer-on-death (TOD) deed, like other deeds, is used to transfer real estate. However, the transfer is only effective upon the grantor/owner's death. This deed is different from a life estate deed because the property ownership is transferred during the life of the grantor in a life estate deed. Another name for this type of deed is "beneficiary deed".

Determining whether a deed is a transfer on death should be pretty easy. The title of the deed document should describe it as such. In the text of the document, there should also be language stating that the transfer is only effective upon the death of the grantor.

Many people use transfer on death deeds for planning. Financially it may seem like a good choice, but strategically relying on any kind of deed as your succession plan falls very short of planning for multiple generations of family ownership. In fact, it can create lots of problems and more expenses.