Transfer-on-Death Deeds in Oregon—A Simple Way to Keep Real Estate Out of Probate
An Oregon transfer-on-death deed lets you pass real estate directly to your heirs without probate, without court involvement, and without giving up ownership during your lifetime. Here's how it works — and when it makes sense.
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 to an already difficult time.
One of Oregon's simplest solutions is the transfer-on-death deed, commonly called a TOD deed. It's an underused tool that lets real estate pass to your chosen heirs without probate, without court involvement, and without changing ownership during your lifetime. Oregon authorizes TOD deeds under ORS 93.948–93.979, making them one of the most accessible probate-avoidance tools available to Oregon homeowners.
What Is an Oregon Transfer-on-Death Deed?
An Oregon 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 — but for real estate instead of a bank account or life insurance policy.
Key features of an Oregon TOD deed:
It does not transfer ownership during your lifetime
It is revocable — you can change or cancel it at any time before your death
It bypasses probate and automatically transfers title to the named beneficiary when you die
It does not trigger gift tax, capital gains tax, or property 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 to Create a Transfer-on-Death Deed in Oregon
Oregon law sets out specific requirements for a valid TOD deed. To create one:
The deed must use statutory language as set out in ORS 93.975, or a substantially similar form
The deed must be signed and notarized
It must be recorded with the county recorder's office in the county where the property is located — and it must be recorded before your death
That last point matters: the deed only becomes effective when you die. If you revoke it, sell the property, or outlive the named beneficiary before recording a new one, the TOD designation fails — but no harm is done. Your property simply passes through your estate as it otherwise would.
Does a Transfer-on-Death Deed Avoid Probate?
Yes — that's its primary purpose. When a valid Oregon TOD deed is in place and the named beneficiary survives you, title transfers automatically at your death without any court involvement. The beneficiary typically records an affidavit of survivorship and a certified copy of the death certificate with the county clerk to complete the transfer.
This makes the TOD deed one of the most effective probate-avoidance tools for Oregon homeowners, particularly when combined with other non-probate transfers like POD (payable-on-death) designations on bank accounts. As covered in the non-probate transfers post, a well-coordinated plan can keep an entire modest estate out of probate without the cost and complexity of a full trust.
Who Should Use an Oregon TOD Deed?
Oregon TOD deeds work best for:
Single individuals or surviving spouses 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 means-tested benefits
Those who want a backup plan in case a revocable living trust is never fully funded
A common example: a widow with a home, a modest bank account, and a car might use a TOD deed for the house, name a POD beneficiary on her checking account, and avoid probate entirely — without ever needing a trust.
When an Oregon TOD Deed Isn't the Right Tool
While TOD deeds are a powerful and low-cost option, they're not right for every situation. Consider alternatives if:
You own the property jointly with someone else, especially a spouse — your interest may pass to the surviving co-owner rather than your TOD beneficiary depending on how title is held
You want to leave the property to multiple people who may not agree on what to do with it
You want to control what happens after you're gone, such as delaying an inheritance or protecting assets from creditors
The real estate is part of a larger trust-based estate plan
TOD deeds cannot include conditions. You can't say "only if she graduates from college" or "he gets the house but must let his brother live there." For that level of control, a revocable living trust is the better tool.
Can I Use a Transfer-on-Death Deed If I Have a Mortgage?
Yes. A TOD deed doesn't interfere with an existing mortgage or lien. The beneficiary simply inherits the property subject to whatever debt remains — they'll need to refinance, assume the loan, or sell to satisfy it, just as with any inherited home.
One important note: a TOD deed only transfers your interest in the property. If the home is titled in joint tenancy with right of survivorship, your interest passes to the surviving co-owner at your death — not to the TOD beneficiary. As covered in the joint ownership types post, how you hold title has a significant effect on what your estate plan can and cannot accomplish.
How to Revoke or Change an Oregon TOD Deed
TOD deeds are fully revocable at any time before your death. To change or cancel one:
File a new TOD deed naming a different beneficiary — the newer deed controls
File a revocation instrument with the county recorder
Sell the property, which nullifies the TOD deed by default since you no longer own the asset
Your control over the property never changes during your lifetime. That's one of the main reasons TOD deeds are popular with clients who don't want to give up ownership or trigger unwanted tax consequences.
TOD Deed vs. Revocable Living Trust: Which Is Right for You?
Both tools can keep real estate out of probate, but they serve different purposes.
A TOD deed is simpler, cheaper to create, and requires no ongoing administration. It works well for a single piece of real estate going to a straightforward beneficiary.
A revocable living trust offers more flexibility — it can hold multiple assets, name a successor trustee to manage property if you become incapacitated, include conditions on distributions, and coordinate your entire estate in one document. If your situation involves multiple properties, minor beneficiaries, blended family dynamics, or a desire for incapacity planning, a trust is likely the better fit.
In some Oregon estates, both tools work together — a trust holds the primary assets, and a TOD deed serves as a backstop for any real estate that wasn't transferred into the trust before death.
Bottom Line
An Oregon transfer-on-death deed is a powerful, low-cost way to keep real estate out of probate — especially for Oregonians with straightforward situations and a single property to pass. But like any legal tool, it works best when used in the right context, with full awareness of how it interacts with the rest of your estate plan.
If you want a no-court transfer that doesn't disrupt your finances or your life while you're alive, an Oregon TOD deed may be exactly what you need. If your situation is more complex — multiple assets, minor heirs, tax planning concerns, or a desire for post-death control — a trust is worth considering.
At Track Town Law, I can help you figure out which option fits your goals. I offer flat-fee estate planning with no upsells. Contact us here.
This post is for general informational purposes only and does not constitute legal advice. Estate planning law is specific to individual circumstances. Contact a licensed Oregon estate planning attorney to discuss your situation.
