Understanding the Transfer on Death Deed (TODD) or in Florida Named Lady Bird Deed
When it comes to estate planning, many people are familiar with the basics: writing a will, designating beneficiaries, and possibly setting up a trust. However, when it comes to transferring real estate after death, two effective tools exist—the Transfer on Death Deed (TODD) or in Florida named the Lady Bird deed. Both of these legal instruments offer straightforward, cost-effective ways to ensure your real estate passes directly to your chosen beneficiary without the need for probate. In this blog, we’ll explore the ins and outs of the Transfer on Death Deed, its benefits, and how it can help you streamline your estate planning process while enabling beneficiaries to sell inherited property quickly for cash.
What is a Transfer on Death Deed?
A Transfer on Death Deed (TODD) is a legal document that allows property owners to name a beneficiary who will automatically inherit their real estate upon their death. Unlike other forms of property transfer, a TODD does not require the property to go through probate court. Instead, ownership of the property is transferred directly to the designated beneficiary as soon as the original owner passes away.
The TODD operates much like a payable-on-death (POD) designation on a bank account. Just as the funds in a POD account transfer directly to the named beneficiary without needing to go through probate, a TODD ensures that the property is transferred immediately and without the court’s involvement. This makes the TODD a powerful tool in estate planning, especially for those looking to minimize the time, cost, and complexity associated with probate and sell inherited properties without delays.


How Does a Transfer on Death Deed Work?
A TODD is relatively simple to create and execute. Here are the basic steps involved:
1. Draft the Deed: The property owner, known as the grantor, prepares a TODD that clearly states their intention to transfer the property to a specific beneficiary upon their death. The deed must include a full legal description of the property, the name of the beneficiary, and other pertinent details.
2. Record the Deed: For a TODD to be valid, it must be recorded with the county clerk’s office in the county where the property is located. This step is crucial; an unrecorded TODD is not legally binding and will not transfer the property.
3. Retain Ownership: After recording the TODD, the grantor retains full ownership and control of the property during their lifetime. They can live on the property, sell it, mortgage it, or even revoke the TODD if they change their mind. The beneficiary has no ownership rights until the grantor’s death.
4. Transfer Upon Death: When the grantor passes away, the property automatically transfers to the beneficiary named in the TODD. The beneficiary must file an affidavit of death and other necessary documents with the county to formalize the transfer, allowing them to sell the inherited property quickly or for cash without any delays.
The Advantages of a Transfer on Death Deed
There are several compelling reasons why a TODD or in Florida named Lady Bird deed might be an ideal choice for transferring real estate and enabling quick cash sales:
Limited to Real Estate: A TODD is specifically designed for real estate. It does not apply to other types of assets, such as bank accounts, investment accounts, or personal property. Other estate planning tools will be needed to address the transfer of these assets.
Potential for Conflicts: A TODD could lead to disputes among heirs if the terms of the deed conflict with other estate planning documents or family expectations.
Creditor Claims: While a TODD can help avoid probate, it does not shield the property from the grantor’s creditors. If the grantor has outstanding debts at the time of their death, creditors may still pursue claims against the property, potentially forcing the beneficiary to sell it to satisfy those debts.
Complexity in Multi-State Ownership: If a grantor owns property in multiple states, a separate TODD may be required for each state, complicating the estate planning process.
Potential Drawbacks and Considerations
While a TODD offers many advantages, it’s not without potential drawbacks or limitations. It’s important to consider the following:
Limited to Real Estate
A TODD is specifically designed for real estate. It does not apply to other types of assets, such as bank accounts, investment accounts, or personal property. Other estate planning tools will be needed to address the transfer of these assets.
Potential for Conflicts
In some cases, a TODD could lead to disputes among heirs, especially if the terms of the deed conflict with other estate planning documents or the expectations of family members. For example, if a TODD names one child as the beneficiary of the family home, but a will distributes the rest of the estate equally among all children, this could create tension.
Creditor Claims
While a TODD can help avoid probate, it does not shield the property from the grantor’s creditors. If the grantor has outstanding debts at the time of their death, creditors may still pursue claims against the property, potentially forcing the beneficiary to sell it to satisfy those debts.

Complexity in Multi-State Ownership
If a grantor owns property in multiple states, a separate TODD may be required for each state, as property laws vary by jurisdiction. This can complicate the estate planning process and may necessitate additional legal assistance.
How to Create a Transfer on Death Deed
Creating a TODD is a relatively straightforward process, but it’s important to follow all legal requirements:
1. Consult with an Attorney: While it’s possible to create a TODD without legal assistance, consulting with an estate planning attorney is advisable to ensure the deed is properly drafted.
2. Prepare the Deed: The TODD must include specific information to be valid, such as the grantor’s information, legal description of the property, beneficiary’s information, and a statement of intent.
3. Record the Deed: Once the TODD is completed, it must be signed and notarized by the grantor, then recorded with the county clerk’s office.
4. Revoking or Amending the Deed: If you change your mind about the beneficiary or decide to sell the property, you can revoke or amend the TODD at any time before your death.




The Transfer on Death Deed (TODD) or in Florida Named Lady Bird Deed
Florida is one of the states that recognizes the Transfer on Death Deed (TODD) or in Florida named the Lady Bird deed as a valid method for transferring real estate. Additionally, the Lady Bird deed is another term commonly used in Florida for similar purposes. The Florida Estates Code provides specific guidelines for creating and recording both the TODD and the Lady Bird deed.
Florida Specific Requirements:
In Florida, a Lady Bird deed must meet specific legal requirements, including a detailed property description, identification of the life tenant and remainder beneficiaries, and a clause that grants the life tenant the authority to sell, convey, or mortgage the property.
Tax Implications of Lady Bird Deeds:
Transferring property with a Lady Bird deed does not trigger a gift tax, and the beneficiary should enjoy a step-up basis in the property.
Avoiding Common Pitfalls
While a TODD or Lady Bird deed can be a powerful tool in estate planning, it’s important to be aware of common mistakes:
Failure to Record the Deed: The most critical step in creating a TODD or Lady Bird deed is recording it with the county clerk. An unrecorded deed is not legally binding.
Not Updating the Deed: Update your TODD or Lady Bird deed if necessary to avoid unintended consequences.
Ignoring Other Estate Planning Tools: Use other tools in conjunction with a TODD or Lady Bird deed to ensure comprehensive estate planning.
Take Away: Is a Transfer on Death Deed (TODD) or in Florida Named Lady Bird Deed Right for You?
A Transfer on Death Deed (TODD) or in Florida named a Lady Bird deed offer simple, efficient, and cost-effective ways to transfer real estate directly to a beneficiary upon your death, without the need for probate. By using a TODD or Lady Bird deed, you can ensure that your property passes smoothly to your chosen heir, who can then sell it quickly for cash, while maintaining full control over the property during your lifetime.
However, as with any legal tool, it’s important to consider your individual circumstances and consult with an estate planning attorney to determine if a TODD or Lady Bird deed is the best option for you. By carefully planning and executing your estate documents, you can achieve peace of mind knowing that your real estate will be handled according to your wishes, providing clarity and security for your loved ones.