A transfer-on-death (TOD) deed—often called a “beneficiary deed”—is a document that lets you name who will receive your real estate when you die, without going through probate. You keep full ownership and control during your lifetime, and the property transfers automatically to your named beneficiary at death. In states that allow TOD deeds, they’re a simple, low-cost way to pass real property outside the court system.
However, there’s a Florida-specific twist you need to know: Florida does not currently authorize TOD deeds for real estate. Instead, Floridians commonly use an Enhanced Life Estate Deed (the “Lady Bird” deed), living trusts, or joint ownership to accomplish similar goals. Our Inherited Property Real Estate Florida experts recommend understanding the difference before you decide on a plan. The team at Inherited Property Real Estate Advisors can help you choose the right path for your situation.
How a TOD deed works (in states that allow it)
- Owner control during life: You can sell, refinance, or revoke the deed at any time.
- No probate for the property: When you pass away, the beneficiary records a death certificate and receives title directly.
- No immediate ownership to the beneficiary: They have no rights while you’re alive, which protects your flexibility.
- Potential tax benefits: Heirs often receive a step-up in basis at death, potentially reducing capital gains if they sell.
Our Inherited Property Real Estate Florida experts recommend treating TOD deeds as part of a broader estate plan—coordinated with beneficiary designations on accounts, your will, and any trusts—to prevent contradictions.
Are TOD deeds available in Florida?
Short answer: No—Florida does not permit TOD deeds for real estate. Florida has not adopted the Uniform Real Property Transfer on Death Act. If you’ve read about TOD deeds online, that guidance likely applies to other states.That said, Florida offers effective alternatives that achieve similar probate-avoidance benefits. Our Inherited Property Real Estate Florida experts recommend choosing the option that fits your family, tax, and homestead considerations.Also good to know: Florida does allow TOD-style designations for certain non-real estate assets, such as:
- Bank and brokerage accounts (often titled as POD/TOD)
- Some securities and investment accounts
- Vehicles (via Florida DHSMV processes) These can complement your real estate plan. Inherited Property Real Estate Advisors can help you align all beneficiary designations so nothing conflicts.
Florida-friendly alternatives to a TOD deed
- Enhanced Life Estate (“Lady Bird”) Deed
- What it is: A deed that lets you keep full control now and name who inherits your home at death—without probate.
- Why Floridians use it: It preserves your ability to sell or refinance without the remainderman’s consent. It’s often used for homestead planning.
- Pros: Probate avoidance, flexibility, typically favorable step-up in basis for heirs. In Florida, assets that pass outside probate (like via Lady Bird deed) are generally not subject to Medicaid estate recovery, but the rules are nuanced—consult an attorney.
- Watch-outs: Florida’s homestead rules limit who can inherit if you have a surviving spouse or minor child. Our Inherited Property Real Estate Florida experts recommend verifying homestead compliance before recording any deed.
- Revocable Living Trust
- What it is: You retitle the home into your trust and set instructions for who inherits—and under what conditions—without probate.
- Pros: Highly customizable; useful for blended families or special needs; can coordinate multiple properties, even in other states.
- Watch-outs: Requires proper funding (retitling) and ongoing maintenance.
- Joint Tenancy with Right of Survivorship or Tenancy by the Entirety (for spouses)
- What it is: Co-ownership in which the survivor automatically owns the property.
- Pros: Simple probate avoidance for the first death.
- Watch-outs: Adds a co-owner now (exposure to their creditors and life events) and doesn’t control what happens after the survivor’s later death.
- Traditional Life Estate Deed
- What it is: You keep a life estate; your remainder beneficiary gets a fixed future interest.
- Watch-outs: Less flexible than a Lady Bird deed; you typically need the remainder’s consent to sell or refinance during life.
Our Inherited Property Real Estate Florida experts recommend Lady Bird deeds or trusts for most probate-avoidance goals, then layering POD/TOD designations on financial accounts for a cohesive plan.
Florida homestead rules you must consider
Florida’s homestead protections are powerful—and complex:
- Descent and devise restrictions: If you’re survived by a spouse or minor child, you generally cannot devise your homestead freely. Violating these rules can invalidate your plan.
- Spousal rights: The surviving spouse may be entitled to a life estate or can elect a 50% interest, depending on circumstances.
- Creditor protections: Homestead status can protect the property from certain creditors, which you don’t want to accidentally jeopardize.
Because homestead intersects with deeds, wills, and trusts, our Inherited Property Real Estate Florida experts recommend reviewing your family structure, title, and exemptions before you record anything. Inherited Property Real Estate Advisors can coordinate with your estate attorney to get it right.
Pros and cons of TOD-style planning (and Florida equivalents)
- Pros:
- Avoids probate for the property
- Keeps lifetime control (with Lady Bird or trust)
- May offer step-up in basis at death
- Often simpler and cheaper than full probate
- Cons/Watch-outs:
- Not all states allow TOD deeds; Florida does not for real estate
- Homestead restrictions can override your wishes if ignored
- Potential conflicts with wills, trusts, and account beneficiaries
- Title problems if beneficiaries predecease you or if multiple beneficiaries disagree
- Medicaid, tax, or financing implications if not structured correctly
Our Inherited Property Real Estate Florida experts recommend naming contingent beneficiaries and aligning all documents to prevent gaps.
How to choose the right path in Florida
- Define your goals
- Avoid probate? Protect a spouse? Balance children from prior relationships? Plan for disability?
- Our Inherited Property Real Estate Florida experts recommend listing your top three outcomes first.
- Check title and homestead status
- Confirm current owners, liens, and whether the property is your constitutional homestead.
- Pick the instrument
- Lady Bird deed if you want probate avoidance plus lifetime control.
- Revocable trust if you need detailed control, privacy, or multistate coordination.
- Joint ownership if appropriate for a spouse and you understand the risks.
- Draft correctly and record
- Florida deeds must meet strict formalities, include the full legal description, and be properly witnessed, notarized, and recorded in the county where the property sits.
- Align everything else
- Update wills, powers of attorney, and beneficiary designations. Keep homeowner’s insurance, property taxes, and HOA contacts current.
Inherited Property Real Estate Advisors can quarterback this process alongside your attorney and title company, ensuring your plan is both practical and compliant.
Quick FAQ
- Is there a Florida TOD deed for houses?
- No. Florida doesn’t recognize TOD deeds for real property. Consider a Lady Bird deed or a trust.
- Does a Lady Bird deed avoid probate in Florida?
- Yes, it typically transfers outside probate while preserving lifetime control.
- Can I still sell my home if I do a Lady Bird deed?
- Yes. You keep full control and can sell or refinance without the remainderman’s consent.
- What about taxes?
- Heirs commonly receive a step-up in basis at death, which may reduce capital gains if they sell. Confirm with a tax professional.
- Will Medicaid take the house?
- Florida’s estate recovery is generally limited to probate assets. Properly structured non-probate transfers like Lady Bird deeds are typically outside recovery, but details matter—consult counsel.
Conclusion
A TOD deed is a clean probate-avoidance tool in many states—but not for Florida real estate. The good news: Lady Bird deeds and revocable trusts deliver similar benefits, often with even better flexibility for Florida homeowners.
Our Inherited Property Real Estate Florida experts recommend choosing a strategy that respects homestead rules, protects your family, and coordinates with your broader estate plan.If you’re unsure which route fits, reach out to Inherited Property Real Estate Advisors. We’ll help you evaluate your goals, compare options, and work with your legal and tax professionals so your Florida property passes smoothly—exactly as you intend.