No Will, No Heirs: What Happens to a California Home?
Last Updated: September 4, 2026
Transfer-on-Death (TOD) deeds may sound like a simple solution for transferring real estate upon death, but in California, this estate planning tool comes with serious drawbacks. While recent changes to the law aim to improve their function, TOD deeds remain risky compared to more reliable alternatives.
What Is a Transfer-on-Death Deed?
A TOD deed lets a property owner name one or more beneficiaries who will automatically receive their real estate after death—no probate needed. The intent behind this tool is to offer a quick, low-cost way to avoid the probate court process.
Sounds ideal, right? Not always.
2022 Update to California's TOD Deed Law
In 2022, California lawmakers revamped the rules around TOD deeds through Assembly Bill 1667. These changes took effect on January 1, 2022, and are in place until January 1, 2027. The goal was to reduce misuse and improve oversight.
Key updates include:
- Â Witness Requirements: TOD deeds now must be signed in front of two witnesses, much like a will.
- Â 60-Day Recording Deadline: The deed must be recorded within 60 days of signing or it becomes invalid.
- New Notice Requirement: The transferor must notify all named beneficiaries of the recorded TOD deed.
- Contestation Window: There is a 120-day window to contest a TOD deed after the transferor's death.
These revisions offer more protections than the earlier version, but they still don't solve the deeper problems.
Downsides of Using a TOD Deed in California
Despite reforms, TOD deeds still present major risks:
1. No Protection from Creditors
Unlike a living trust, a TOD deed doesn't shield property from creditors. If the decedent owed money, the property may still be subject to claims.
2. Limited Use
A TOD deed only transfers real estate. It does not apply to other valuable assets like bank accounts, vehicles, or personal property.
3. Potential for Disputes
Family members who feel they were wrongly excluded may still challenge a TOD deed, leading to court battles that cost time and money.
4. Poor Fit for Complex Estates
TOD deeds work best for simple estates with one or two heirs. In blended families, second marriages, or when a beneficiary requires lifelong financial oversight, a trust is usually a better choice.
5. Unintended Disinheritance
If one beneficiary dies before the property owner and no alternate is named, the entire transfer may fail. Unlike a will or trust, a TOD deed doesn't automatically adjust for changes in life circumstances.
6. Title Insurance Challenges
One significant drawback of using a Transfer-on-Death deed in California is the potential difficulty in obtaining title insurance after the property owner's death. Because a TOD deed bypasses probate and lacks the court oversight that confirms rightful ownership, title companies may be hesitant to issue a policy without additional documentation or legal clearance. They may require waiting periods, affidavits from heirs, or even court orders to ensure there are no competing claims or outstanding debts tied to the estate. This uncertainty can delay the sale or refinancing of the property, making TOD deeds less attractive for heirs hoping for a smooth transfer.
Better Options Than a TOD Deed
While AB 1667 adds valuable safeguards, TOD deeds remain a limited estate planning tool that may not be right for everyone. If you’re considering a TOD deed—or a more robust alternative like a living trust—Probate & More can help you understand the implications and avoid costly missteps so you can choose the best path for your situation.
In most cases, a revocable living trust offers more control, privacy, and long-term protection. Trusts can handle multiple asset types, provide detailed instructions, and reduce the chance of legal dispute.
A Quick Comparison – TOD vs Living Trust
Transfer on Death Deed
| âś… Simple to set up with one recorded document |
| âś… Avoids probate for that one property |
| ❌ Only works for personal residence |
| ❌ No protection if beneficiary dies first |
| ❌ No incapacity planning |
| ❌ May cause title insurance delays or issues |
| ❌ Must be refiled if changes occur |
| âś… Low cost upfront |
Revocable Living Trust
| âś… Offers comprehensive control over all assets |
| âś… Avoids probate for all included assets |
| âś… Works for real estate, bank accounts, and more |
| âś… Allows successor beneficiaries and detailed planning |
| âś… Includes instructions if you become incapacitated |
| âś… Ensures smoother property transfer to heirs |
| âś… Easily amendable during your lifetime |
| ❌ Higher initial setup cost—but saves more later |
The Bottom Line
Transfer-on-Death deeds may seem appealing for their simplicity, but their limitations often outweigh their benefits—even with the 2022 law updates.
At Probate & More, we help Californians design estate plans that protect their assets and their loved ones. We offer low-cost, attorney-free support to set up living trusts and avoid probate the right way.
If you're thinking about using a TOD deed, contact Probate & More to explore the cost of safer, smarter alternatives that fit your situation.
Smart. Simple. Affordable. Legal Help Without the Lawyers.
This article is for general informational purposes only and does not constitute legal advice.
We are a California Registered Legal Document Assistant (LDA). We prepare legal documents — we do not practice law.
For legal advice specific to your situation, please consult a licensed California probate attorney.
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