The simple document that allows California homeowners to pass down their home to their children without probate

When a family member dies, one of the first questions is what happens to everything they owned and who has the right to it. Inheritance is receiving assets from someone who has passed away, such as cash endowments, stocks, and real estate.

Official.Inheritance in the U.S.: who inherits when there’s no will, which taxes apply and how probate works

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In California, one of the biggest concerns is probate, the court process to transfer a person’s property after they die, which can take months and cost thousands of dollars. But homeowners have a simple tool to spare their families from it.

It’s called a Revocable Transfer on Death Deed, also known as a TOD deed. According to the Sacramento County Public Law Library, it lets the owner name the people who will inherit their home.

And when the owner dies, those beneficiaries receive the property without going to court.

How does the TOD deed work?

The Revocable Transfer on Death Deed The owner needs to fill out the deed and names of the beneficiaries.

The deed has no effect until the owner dies, so in the meantime they can still sell, refinance, or change their mind. It can be revoked at any time, for any reason.

It can be used for homes with one to four residential units, condominiums, or a single-family home with less than 40 acres of farmland.

What are the requirements to pass down a house without probate in California?

The rules are simple but very strict, and a mistake can void the deed:

• It must be signed in front of a notary.
• Since January 1, 2022, it must also be signed by two witnesses.
• It must be recorded at the county recorder’s office within 60 days of being notarized. If not, it becomes invalid.

The library warns that missing the 60-day deadline is the easiest way for a TOD deed to fail.

What heirs should know about TODD

When the owner dies, the beneficiaries don’t have to go to court, but they do have to notify all heirs and file several documents to put the property in their name.

There are also some limits:

• The home is not protected from debts. If the owner dies with a mortgage or other debts, the beneficiaries could end up with nothing.
• If the home is owned in joint tenancy or as community property, the co-owner receives the share first.
• If a beneficiary dies before the owner, their share goes to the other beneficiaries, not to their children.
• Title companies may refuse to insure the property for up to three years after the owner’s death, which can delay a sale.