How a Transfer on Death Deed Works in Florida

A transfer on death deed (TODD) is often used in certain states as a way to pass real estate directly to a beneficiary without going through probate. By naming a recipient in advance, property owners can arrange for ownership to transfer automatically at death, without court involvement. The property remains under the owner’s control during their lifetime, and the deed can typically be amended or revoked if circumstances change. That said, Florida does not allow transfer on death deeds for real estate. Instead, Florida homeowners often turn to lady bird deeds to accomplish similar probate-avoidance objectives. For help evaluating estate planning options, consider working with a financial advisor.

What Is a Transfer on Death Deed?

A transfer on death deed is a legal mechanism that allows a property owner to name a beneficiary who will receive real estate upon the owner’s death, outside of the probate process. In states where TODDs are authorized, this approach can simplify the transfer of property and reduce administrative delays for heirs.

Rather than relying on a will or placing property into a trust, a TODD functions as a revocable designation that takes effect only after death. The owner maintains full ownership rights during life, including the ability to sell or refinance the property. Because the transfer happens by operation of law, probate may be avoided where state statutes permit this type of deed.

Rules governing TODDs differ from state to state. Florida has not adopted the Uniform Real Property Transfer on Death Act and does not recognize TODDs for real estate transfers. As a result, Florida residents must use other planning strategies if they want to pass property outside of probate.

In jurisdictions where TODDs are valid, they can provide a clear framework for transferring property after death. In Florida, however, lady bird deeds offer a legally recognized alternative that provides many of the same benefits.

How a Lady Bird Deed Works in Florida

A man researching how a transfer on death deed works in Florida.

Florida property owners have access to several estate planning techniques, and one of the most frequently used alternatives to a TODD is the lady bird deed, formally known as an enhanced life estate deed. This type of deed is recognized in Florida and allows real estate to pass to a designated beneficiary without probate.

A traditional life estate divides ownership between a life tenant and a remainder beneficiary. The life tenant can use the property during their lifetime, but typically cannot sell or mortgage it without the beneficiary’s consent. A lady bird deed modifies this arrangement by granting the owner enhanced powers.

With a lady bird deed, the property owner keeps full authority over the property, including the right to sell, refinance or revoke the deed entirely. The beneficiary’s interest does not vest until the owner’s death. This combination of probate avoidance and retained control makes lady bird deeds a popular choice among Florida homeowners.

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Lady Bird Deed vs. Transfer on Death Deed in Florida

Although transfer on death deeds and lady bird deeds are often discussed together, they function very differently under Florida law. Understanding how they compare can help clarify which tools are actually available to Florida property owners.

A TODD allows real estate to pass directly to a named beneficiary upon the owner’s death, without probate, in states that recognize this type of deed. The owner retains control during life and can revoke or change the beneficiary designation. However, Florida does not permit TODDs for real estate, meaning they cannot be used to transfer Florida property and have no legal effect under state law.

A lady bird deed, by contrast, is fully recognized in Florida and is commonly used as a probate-avoidance strategy. It allows property to transfer to a designated beneficiary at death while preserving the owner’s ability to sell, mortgage or revoke the deed without the beneficiary’s consent.

From a practical standpoint, both tools are designed to simplify property transfers after death, but only one is available in Florida. While TODDs serve this purpose in some states, Florida homeowners typically rely on lady bird deeds to achieve similar outcomes while remaining compliant with state law.

Bottom Line

Clients meeting with a financial advisor to discuss setting up a transfer on death deed.

Transfer on death deeds and lady bird deeds are both designed to simplify the transfer of real estate and reduce probate exposure. However, because Florida does not permit transfer on death deeds, they cannot be used for Florida property. Instead, Florida homeowners commonly rely on lady bird deeds, which allow property to pass directly to a beneficiary while preserving the owner’s control during life. As with any estate planning strategy, these tools come with trade-offs, including potential Medicaid implications and less protection against creditors compared with trusts, making professional guidance an important part of the planning process.

Tips for Estate Planning

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As you begin the journey of creating your estate plan, consider this estate planning checklist to help you get started on the right track.