Transfer on Death Deed vs. Living Trust in California

By Jay S. Yu, Esq., Yu & Yu Law, Fullerton, California · Last reviewed October 2026

A revocable transfer on death deed can pass one California home to a named beneficiary outside probate, but it has strict signing and recording rules, does nothing if you become incapacitated, and the statute currently runs only until January 1, 2032. A living trust covers your home and your other assets in one plan, during your life and after it.

What is a transfer on death deed?

A revocable transfer on death deed, or TOD deed, names who receives your home when you die (Prob. Code § 5600 et seq.). It gives the beneficiary no rights while you are alive, you can revoke it, and the property stays subject to your creditors during your life. It is available for a home with one to four residential units, a condominium, or a qualifying small agricultural parcel (Prob. Code § 5610).

How do you make a TOD deed valid?

The formalities are strict. You must sign and date the deed in front of two witnesses who are present at the same time, and your signature must be acknowledged before a notary (Prob. Code § 5624). The deed must then be recorded with the county recorder before your death and within 60 days after it was notarized, or it is void (Prob. Code § 5626).

What does a TOD deed not do?

• It does nothing if you become incapacitated. No one gains authority to manage, refinance, or sell the home for you.

• It covers one property. Your accounts and other assets need their own plan.

• It is void if you hold the home in joint tenancy or as community property with right of survivorship and your co-owner survives you (Prob. Code § 5664).

• A beneficiary who dies before you simply drops out, and several beneficiaries take the home together as co-owners in equal shares (Prob. Code § 5652), which can leave siblings who disagree about selling.

• It cannot hold an inheritance for a young or vulnerable beneficiary; the property passes outright.

• A beneficiary can be personally liable for your unsecured debts, up to the home's value at your death less liens (Prob. Code §§ 5672, 5674).

Can a will change a TOD deed?

No. A TOD deed can be revoked only by a recorded instrument, such as a statutory revocation form, a later TOD deed, or a lifetime transfer of the home. A later will that leaves the house to someone else does not override it, which is a common source of family disputes.

What happens to TOD deeds after 2032?

The TOD deed statute is set to be repealed on January 1, 2032, unless the Legislature extends it. A deed executed before then keeps working, but anyone relying on one should expect to revisit the plan as that date approaches (Prob. Code § 5600(c)).

Is property tax treated differently?

No. A home passing at death by TOD deed or through a trust is treated the same way for property tax. A transfer to your children can keep your assessed value only under Proposition 19's rules, which require the child to make the home their principal residence and cap the benefit.

When does a TOD deed make sense?

A TOD deed can work for a single owner with one home, one adult beneficiary, few other assets, and no need for incapacity planning. Even then, you still need a durable power of attorney and a healthcare directive, and you should keep the deed in mind if you remarry, add a co-owner, or refinance. Read about joint tenancy and how title affects your plan.

Why most homeowners choose a living trust

A living trust handles the situations a TOD deed cannot: it lets your successor trustee manage the home if you become ill, covers your accounts and other property, names backup beneficiaries, and can hold an inheritance until a child is ready. I prepare the trust deed that moves your home into your trust as part of the plan. Read how a trust keeps your house out of probate, and see what a complete plan costs.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Laws change frequently and there is no guarantee that the information in this article will be applicable or correct when you read this. You should consult with an attorney to discuss your specific situation. This article discusses California law; Jay S. Yu is licensed to practice in California.