What Happens to Your Property After You Pass Away? Understanding Deed on Death and Your Options

It’s not the most comfortable topic, but understanding what happens to your property after you pass away is one of the most important things you can do for your family.

Without proper planning, your home can get tied up in a lengthy, expensive probate process—leaving your loved ones dealing with courts, attorneys, and uncertainty during an already difficult time.

The good news? There’s a simple, affordable way to ensure your property passes smoothly to the people you want to inherit it. It’s called a Deed on Death (also known as a Transfer-on-Death Deed).

Let’s break down what happens to property after death and how a Deed on Death works.

What Typically Happens to Property When Someone Dies?

When a property owner passes away, what happens depends on how the property is titled:

Sole ownership: If you own property in your name alone, it typically goes through probate—a court process that can take 6 months to 2 years and cost thousands in legal fees.

Joint ownership with right of survivorship: The property automatically passes to the surviving owner without probate.

Living trust: If the property is in a trust, it passes according to trust terms and avoids probate.

Deed on Death: The property transfers directly to your named beneficiary without probate.

No planning at all: The property goes through probate, and Washington’s intestacy laws determine who inherits.

What Is a Deed on Death?

A Deed on Death (DoD) or Transfer-on-Death Deed (TOD) is a legal document that lets you name a beneficiary who will automatically inherit your property when you pass away—without going through probate.

How It Works:

During your lifetime:

You remain the full owner
You can sell, refinance, or mortgage the property
You can change or revoke the deed anytime
The beneficiary has no ownership rights while you’re alive

After your death:

The property automatically transfers to your beneficiary
No probate required
Your beneficiary files the death certificate and affidavit with the county
The process is fast and inexpensive

Think of it like a “payable on death” designation for your house.

Why Consider a Deed on Death?

1. It Bypasses Probate

Probate can be time-consuming (6+ months), expensive (3-7% of estate value), public, and stressful. A Deed on Death avoids all of this.

2. It’s Simple and Affordable

Unlike setting up a trust (which can cost $2,000-$5,000+), a Deed on Death typically costs just a few hundred dollars to prepare and file.

3. You Keep Full Control

You don’t give up any rights. You can live in the property, sell it, refinance it, or change your mind anytime.

4. It Provides Certainty

Your named beneficiary will inherit the property regardless of what your will says. The Deed on Death takes priority, ensuring your wishes are clear.

How Does a Deed on Death Work in Washington State?

Washington legalized Transfer-on-Death Deeds in 2014. Here’s the process:

Step 1: Decide on Your Beneficiary

You can name:

One person
Multiple people (as joint owners or in percentages)
A backup beneficiary in case your primary beneficiary dies first

Step 2: Prepare the Deed

Work with an estate planning attorney to draft the Transfer-on-Death Deed. It must include:

Legal description of the property
Current owner’s name
Beneficiary’s full legal name
Statement that transfer occurs on death
Your notarized signature

Step 3: Record the Deed

File it with the county auditor’s office where the property is located (Pierce County, Kitsap County, etc.). Once recorded, it’s official.

Step 4: Keep It Updated

Review your Deed on Death every few years and update if needed. You can revoke or change it anytime by recording a revocation or new deed.

Step 5: After Your Death

Your beneficiary will:

Obtain a certified death certificate
Prepare and sign an affidavit
File the documents with the county auditor
Receive clear title to the property

This typically takes a few weeks instead of months or years like probate.

Important Things to Consider

Tax implications: Your beneficiary inherits with a “stepped-up basis,” which can save on capital gains taxes if they sell.

Creditors: The deed doesn’t protect property from your creditors. Debts can still result in claims against the property.

Mortgage: If there’s a mortgage, your beneficiary inherits the property subject to the loan and must continue payments.

Multiple beneficiaries: Naming several people means they’ll own it together, which can lead to disagreements about selling or managing the property.

Doesn’t cover everything: A Deed on Death only transfers real estate. You’ll need other planning for bank accounts, vehicles, and personal belongings.

Deed on Death vs. Other Options

Living Trust: More expensive ($2,000+) but covers all assets and provides more control. Good for complex estates.

Joint Ownership: Free and simple, but you give up sole control and can’t easily undo it.

Will Only: Doesn’t avoid probate. The property still goes through court even with a will.

No Planning: Most expensive option due to probate costs and potential family disputes.

How to Get Started

Step 1: Consult an Attorney

Work with an estate planning attorney to ensure the deed is properly drafted and complies with Washington law. Cost is typically $200-$500.

Step 2: Discuss with Your Beneficiary

Let them know they’ll inherit the property and what their responsibilities will be (taxes, mortgage, maintenance).

Step 3: Review Your Overall Estate Plan

Consider whether you also need:

A will for other assets
Beneficiary designations on accounts
Life insurance
Power of attorney documents

Step 4: Keep Documents Safe

Store the recorded deed with important papers and tell your beneficiary where to find it.

Common Questions

Q: Can I change my mind after recording?
Yes. You can revoke or change it anytime by recording a new document.

Q: Does my beneficiary need to agree?
No. They don’t need to consent or even know about it while you’re alive.

Q: What if my beneficiary dies before me?
The deed becomes void. That’s why naming a backup beneficiary is smart.

Q: Can I use this if I have a mortgage?
Yes. The mortgage doesn’t prevent the deed, but your beneficiary inherits the property with the loan attached.

The Bottom Line

Planning for what happens to your property after you pass away is one of the most caring things you can do for your family.

A Deed on Death is a simple, affordable way to:

Avoid probate
Ensure your property goes to the person you choose
Save your loved ones time, money, and stress

The best time to plan is now—while you have the clarity to make thoughtful decisions about your legacy.

If you’re interested in learning more about Transfer-on-Death Deeds, reach out to an estate planning attorney in your area. They can guide you through the process and make sure your wishes are properly documented.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult with a qualified estate planning attorney for advice specific to your situation.