Transfer-on-Death Deeds in Oregon—A Simple Way to Keep Real Estate Out of Probate
Most Oregonians assume that when they die, their house will “just go” to their spouse or kids. But without the right legal structure in place, real property is almost always subject to probate—a court-supervised process that takes months and adds cost and delay.
One of Oregon’s simplest solutions? The Transfer-on-Death Deed, or TOD deed. It’s an underused tool that can help real estate pass to your chosen heirs without probate, without court, and without changing ownership during your lifetime.
Here’s how it works—and when it does (and doesn’t) make sense.
What Is a Transfer-on-Death Deed?
A Transfer-on-Death Deed is a legal document you sign and record while you're alive that names who should receive your property when you die. It functions like a beneficiary designation for real estate.
Key features:
It does not transfer ownership during your lifetime
It is revocable—you can change or cancel it at any time
It bypasses probate and automatically transfers title to the named beneficiary when you die
It does not trigger gift tax, capital gains tax, or reassessment during your life
You retain full control of the property until death—including the right to sell, lease, refinance, or revoke the TOD deed entirely.
How Do You Create One in Oregon?
Oregon law authorizes TOD deeds through ORS 93.948–93.979. To create one:
You must use statutory language in the deed (or a substantially similar form)
The deed must be signed and notarized
It must be recorded with the county recorder’s office before your death
The deed only becomes effective when you die. If you revoke it, sell the property, or outlive the beneficiary, the TOD designation fails—no harm done.
Who Should Use a TOD Deed?
TOD deeds work best for:
Single individuals or widows/widowers with adult children
Families seeking to avoid probate on real estate while keeping the rest of the estate simple
People who want to preserve eligibility for Medicaid or other benefits
Those who want a backup plan in case their trust is never funded
For example, a widow with a home, car, and modest bank account might use a TOD deed for the house, name a POD beneficiary for her checking account, and avoid probate entirely.
When It Might Not Be a Good Fit
While TOD deeds are a powerful tool, they’re not ideal for every estate. Consider alternatives if:
You own property with someone else, especially a spouse
You want to leave the property to multiple people who might not agree on what to do with it
You want to control what happens next, like delaying inheritance or protecting assets from creditors
The real estate is part of a larger trust-based plan
TOD deeds do not allow conditions—you can’t say “only if she graduates from college” or “he gets the house but must let his brother live there.” If you need those kinds of instructions, a revocable living trust is the better tool.
Can I Use a TOD Deed with a Mortgage?
Yes. A TOD deed doesn’t interfere with existing mortgages or liens. But the beneficiary inherits subject to the mortgage, meaning they’ll need to refinance or sell the property to satisfy the debt—just like with any other inherited home.
Also, remember that TOD deeds only transfer your interest. If the house is owned jointly with right of survivorship, your interest passes to the surviving co-owner—not the TOD beneficiary.
What If I Change My Mind?
No problem. TOD deeds are revocable. You can:
File a new TOD deed naming someone else
File a revocation form with the county
Sell the property, which nullifies the deed by default
Your control never changes. That’s one reason they’re popular among clients who don’t want to give up ownership or trigger unwanted tax issues.
Final Thought
TOD deeds are a powerful, low-cost way to keep real estate out of probate—especially in Oregon, where even modest estates get tied up in court. But like any legal tool, they’re only effective when used in the right context, with full awareness of the trade-offs.
If you want a no-court transfer that doesn’t disrupt your life or finances while you’re alive, a TOD deed might be the right fit. If your situation is more complex—or you want layered protections, tax planning, or control after death—a trust might be smarter.
At Track Town Law, I can help you sort out which option fits your goals. I offer flat-fee estate planning with no upsells, and you can book a consultation here.
