Utah Transfer-on-Death (Tod) Deeds & Non-Probate Transfers
How Certain Assets Bypass Probate in Utah—and Where the Limits Are
Many Utah homeowners hear that a “TOD deed” or a beneficiary designation can avoid probate and assume that solves everything. These tools can be effective, but only within defined boundaries.
Utah allows several non-probate transfer methods, including Transfer-on-Death (TOD) deeds for real estate and beneficiary designations for financial accounts. This page explains how these tools work in Utah, when they apply, and where misunderstandings commonly arise.
Why this Matters
Non-probate transfers can move assets quickly and privately. When used incorrectly, they can also create gaps, conflicts, or unexpected probate.
Many Utah families assume that if one asset avoids probate, the entire estate will. In practice, results depend on how each asset is titled or designated and whether those choices work together.
What Non-Probate Transfers Are
A non-probate transfer moves an asset directly to a named person at death without court involvement.
Common non-probate tools in Utah include:
- Transfer-on-Death (TOD) deeds for real estate
- Pay-on-Death (POD) or Transfer-on-Death (TOD) designations on accounts pass funds directly to designated beneficiaries.
These are Used for:
- Bank accounts
- CDs
- Investment accounts
- Beneficiary designations on life insurance and retirement accounts
- Certain forms of joint ownership
These tools operate independently. Each asset must qualify on its own.
How Transfer-on-Death (Tod) Deeds Work in Utah
Utah law allows real estate owners to record a Transfer-on-Death deed that names a beneficiary who will receive the property after death.
Under Utah Code §75-6-401 et seq., a TOD deed:
- Transfers ownership only at death
- Does not give the beneficiary current ownership rights
- Can be revoked or changed during the owner’s lifetime
- Avoids probate for that specific property
Many Utah homeowners assume TOD deeds limit control. They do not. The owner retains full rights during life.
What Can Go Wrong if It's Done Incorrectly
Limits Of Tod Deeds People Often Overlook
TOD deeds are narrow tools. They do not:
- Provide incapacity management
- Coordinate multiple beneficiaries over time
- Address tax planning or asset protection
- Replace trust administration for complex estates
A TOD deed transfers title. It does not manage what happens next.
Additionally Joint tenancy or joint ownership can avoid probate, but may introduce:
- Creditor exposure
- Unequal distributions
- Unintended inheritance outcomes
How Non-probate Transfers Can Create Problems
Misunderstandings often lead to:
- Conflicting beneficiary designations
- Assets transferring outside the intended plan
- Minors receiving assets outright
- Lack of coordination between assets
Each method has tradeoffs depending on family structure and asset type. Many Utah families assume these tools “plug into” an estate plan automatically. They do not unless coordinated intentionally.
How Things Play Out
The One Where the Deed Was Never Updated
Homeowner — Outdated TOD Beneficiary
Situation: A homeowner in Wasatch County recorded a TOD deed naming an adult child as beneficiary.
Problem: Years later, the child passed away, but the TOD deed was never updated.
Outcome: When the homeowner died, the TOD deed failed and the property had to go through probate.
Lesson: TOD deeds rely on current beneficiary designations and do not automatically adjust when circumstances change.
The One Where the Will Didn’t Control
Family Heirs — Conflicting Non-Probate Designations
Situation: A parent used TOD designations on financial accounts but had a different distribution plan outlined in a will.
Problem: The family assumed the will controlled how everything would be divided.
Outcome: Assets transferred based on the TOD designations, not the will, creating confusion and frustration.
Lesson: Non-probate transfers override wills and must be coordinated carefully.
The One Where No One Could Step In
Homeowner — Missing Incapacity Planning
Situation: A homeowner relied on a TOD deed as the primary planning tool for the property.
Problem: During a medical crisis, no one had legal authority to manage or sell the home.
Outcome: The family faced delays and court involvement despite having taken steps to plan ahead.
Lesson: TOD deeds address what happens at death. They do not solve incapacity planning.
These tools can simplify individual transfers, but they must be coordinated with wills, trusts, and incapacity planning to avoid gaps.
How Tod Deeds and Non-Probate Transfers Fit Into a Complete Plan
Non-probate tools work best when coordinated with:
- Wills
- Trusts
- Powers of attorney
- Beneficiary reviews
Each tool solves a narrow problem. Results depend on how well they are aligned. Often Trusts are named as the beneficiary of an asset or account.
Common Questions
Non-probate transfers can simplify estate settlement, but only when their limits are understood.
The right plan depends on your family, assets, and goals. If you’re exploring your options, our team can walk you through what these concepts mean for a typical Utah family.
This page offers general educational information about Utah estate planning. It is not legal advice, and any examples described are hypothetical illustrations, not real clients or situations.