Understanding Indiana’s Transfer on Death Deeds

Indiana provides a practical and efficient mechanism for estate planning by the Transfer on Death
Deed (“TOD Deed”), established under Indiana Code chapter 32-17-14. This legal instrument
allows owners of Indiana real estate to name one or more beneficiaries who will automatically
receive ownership of the property upon the owner’s death, thereby avoiding the time and expense
of probate.

A TOD Deed is revocable and preserves the owner’s full rights to sell, encumber, or modify the
property during their lifetime. Ownership does not pass to the beneficiary until the owner has died.
Up until then, the owner can change or revoke the deed as needed without consent of the
beneficiary. After death, the designated beneficiary receives the property automatically, subject to
any existing liens or mortgages that remain attached to the property.

Governed by Indiana Code chapter 32-17-14, the TOD Deed must be in writing, signed by the
owner, identify the beneficiary or beneficiaries, describe the property, and be recorded in the
county where the property is located prior to the owner’s death. The beneficiary is not required to
sign the deed, nor do they need to know about it in advance, but they must survive the owner to
take title. If multiple beneficiaries are named, unless specified otherwise, they will take ownership
as tenants in common.

The key benefit of TOD Deeds is that they allow property to transfer outside probate, which can
save the beneficiary months of delay and considerable legal costs, compared to the formal probate
process. Because no present interest is created for the beneficiary during the owner’s lifetime, there
are generally no gift tax issues at signing. Control of the property remains solely with the owner
until death—beneficiaries do not have rights to possession or profits until then.

While attractive for many, TOD Deeds do not shield property from the owner’s creditors, liens, or
Medicaid estate recovery. If a named beneficiary predeceases the owner, unless an alternate is
named in the deed, their interest lapses. Also, in cases involving complicated family situations or
possible disputes, more comprehensive estate planning instruments may be advisable.

The Indiana Transfer on Death Deed offers property owners a straightforward way to transfer
property without probate, provided all statutory requirements are followed and owners consider
individual needs and limitations. If you want to get started on this process or have any questions
about estate planning in Indiana, please contact McNeelyLaw LLP by calling (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any
specific facts or circumstances. The contents are intended for general informational purposes only,
and you are urged to consult your own lawyer on any specific legal questions you may have
concerning your situation.