Information reviewed: October 30, 2026 · California
If you own a home and have money in the bank, do you necessarily need a living trust to leave those assets to someone you choose?
Depending on your circumstances, a Transfer on Death deed for your home and a Payable on Death designation for your bank accounts may offer a simpler way to prepare.
These arrangements can help specific assets pass outside formal probate. They do not, however, provide a complete plan for incapacity, taxes, debts, or every possible family situation.
What Are TOD and POD?
| Feature | TOD Deed | POD Account |
|---|---|---|
| Full name | Transfer on Death deed | Payable on Death account |
| Used for | Eligible California residential real estate | Eligible bank accounts |
| How it is established | Complete, witness, notarize, and record a deed | Register beneficiaries with the bank |
| Ownership during your lifetime | You retain ownership | You retain ownership |
| Beneficiary’s current rights | No present ownership merely from the designation | No current withdrawal rights merely from the designation |
For example, a homeowner might name a sibling as the beneficiary of a TOD deed and separately register that sibling as the POD beneficiary of a bank account.
This differs from adding the sibling as a current joint owner.
How Do You Prepare a California TOD Deed?
You can prepare a TOD deed yourself, but its requirements must be followed carefully.
1. Locate your current ownership deed
Check the owner’s name and the property’s legal description. A street address alone is not a substitute for the legal description.
A deed of trust generally relates to a mortgage; it is not the same document as the deed establishing your ownership.
2. Use a current California TOD form
Enter the required information, including the beneficiary’s full legal name. Confirm that the property qualifies for this type of transfer.
Avoid making unauthorized changes to the statutory language.
3. Arrange for two witnesses
Both witnesses must be present at the same time to witness your signing or your acknowledgment of the deed.
Avoid using a beneficiary as a witness because doing so can create serious problems if the transfer is challenged.
4. Have your signature notarized
The property owner’s signature must be acknowledged before a notary. The witnesses’ signatures do not themselves need notarization.
5. Record the deed within 60 days after notarization
Record it with the Recorder’s Office in the county where the property is located. Keep the recorded copy with your important documents.
Signing a TOD deed and keeping it at home is not enough. It must be properly executed and recorded.
Also, notarization and recording do not establish that the arrangement is legally appropriate for your circumstances.
Current forms and instructions are available from the Sacramento County Public Law Library.
Sources: California Probate Code §5624, California Probate Code §5626
How Do You Add a POD Beneficiary?
Contact each bank and ask:
“I would like to designate a payable-on-death beneficiary for my account.”
Follow the bank’s process and provide the required beneficiary information. Online availability, eligible accounts, and documentation requirements vary.
Confirm that the designation has been completed for each intended account. Do not assume that naming a beneficiary on one account covers all your accounts.
After the account owner dies, the beneficiary generally provides a death certificate, identification, and any additional documents required by the bank.
What Does Preparation Cost?
If you prepare the TOD deed yourself, there is no document-preparation service fee, but notarization and county recording fees still apply.
Keep two kinds of costs separate:
- Preparer’s fee: what a document-preparation service charges to prepare the deed, sometimes including notarization.
- County recording fee: what the county recorder charges to record the deed. It is paid to the county and varies by county. Whether a preparer’s price includes it depends on the provider; in the fee schedule reviewed for this article, county recording fees are listed separately.
One published document-preparation example:
| Provider | Published preparation price | Included or separate |
|---|---|---|
| IN A PINCH (Oceanside, San Diego County) | $195 per property | Includes in-office notarization for up to two signatures; $30 surcharge for property outside San Diego County; county recording fees and other outside fees are separate |
This is an example, not an endorsement or guaranteed quote. Verify current pricing and the provider’s registration before hiring anyone.
Source: IN A PINCH: Published Fee Schedule
Ask whether the total includes:
- Document preparation.
- Witness arrangements.
- Notarization.
- County recording fees.
- Submission and any resubmission.
- Delivery of the recorded copy.
Ask your bank separately about any fees for its POD process.
When Might a Living Trust Be More Suitable?
TOD and POD can simplify the transfer of particular assets after death.
A living trust can address broader needs, including successor management of assets placed in the trust and more detailed instructions for beneficiaries.
Consider the difference between these two questions:
- Who should receive my assets when I die?
- Who should manage my assets if I am alive but unable to manage them?
TOD and POD beneficiary designations alone do not give someone authority to manage your property during incapacity.
A properly drafted and funded living trust can provide for a successor trustee to manage trust assets under its terms. Creating the trust document without transferring the intended assets into it may leave gaps.
Important Limitations
Your beneficiary still has work to do
A California TOD beneficiary must complete required post-death notices, recordings, and ownership-related filings.
Avoiding formal probate does not mean avoiding all paperwork.
A beneficiary might die first
If a TOD beneficiary dies before the property owner, that beneficiary’s interest lapses. Do not assume the beneficiary’s children automatically receive the property.
Backup inheritance planning deserves attention.
Sources: California Probate Code §5652, California Probate Code §5681
Debts and tax issues remain
A TOD deed does not erase a mortgage or other enforceable claims.
It also does not automatically prevent California property-tax reassessment. Proposition 19’s reassessment exclusion for family transfers (the intergenerational transfer exclusion) applies to transfers from parents to children and, if the grandchild’s parent has died, from grandparents to grandchildren. A transfer between siblings does not qualify for this particular exclusion. Other reassessment exclusions may apply in some situations.
Even for an eligible parent-child transfer, this exclusion applies only when its conditions are met, including:
- The home was the transferor’s principal residence and becomes the transferee’s principal residence.
- The transferee files for the homeowners’ exemption within one year of the death or transfer.
- The exclusion claim is filed within three years of the death or transfer, or before the property is transferred to a third party, whichever is earlier.
- The excluded value is limited to the factored base year value plus an adjusted $1 million amount ($1,044,586 for transfers from February 16, 2025, through February 15, 2027).
Ask the county assessor how a specific transfer will be assessed.
Source: California State Board of Equalization — Proposition 19
A quick sale may be more complicated than expected
Title-insurance concerns following a TOD transfer can complicate a sale or refinance. If the beneficiary expects to sell promptly, discuss this issue with an appropriate professional before choosing the arrangement.
Questions to Ask Before Deciding
- How is the property currently titled?
- Could a spouse or another person have rights in the property?
- Is there a mortgage or other lien?
- What should happen if the beneficiary dies first?
- Will the beneficiary need to sell or refinance soon after inheriting?
- Do you also need a plan for incapacity?
- Are there other assets that need separate arrangements?
TOD and POD can be useful tools for straightforward situations. Whether they are suitable depends on the property, family circumstances, debts, and goals.
Sources and Further Reading
- California Courts: Wills, Estates, and Advance Care Planning
- Sacramento County Public Law Library: Transfer on Death (TOD) Deed
- Sacramento County Public Law Library: TOD Deed — Naming Beneficiaries
- Orange County Superior Court: Living Trusts
- California Probate Code §5624 — Signing, Witnesses, and Notarization
- California Probate Code §5626 — 60-Day Recording Requirement
- California Probate Code §5652 — Beneficiary Who Does Not Survive
- California Probate Code §5681 — Notice to Heirs
- California State Board of Equalization: Proposition 19
- IN A PINCH: Published Fee Schedule
This article provides general educational information, not individualized legal or tax advice. Requirements and fees may change. Verify the current rules, forms, and county and bank procedures before acting.