What a transfer on death deed does.
New Mexico's Uniform Real Property Transfer on Death Act lets an owner sign a deed that takes effect only at death. While you are alive, you keep full ownership. You can live there, sell, mortgage, or change your mind. At death, the property passes to the named beneficiary, without a probate case for that property.
What it takes to do it right.
- The deed must be in writing, signed by the owner, and acknowledged before a notary
- It must be recorded with the county clerk before the owner's death. An unrecorded deed does nothing
- The beneficiary does not have to accept or even know about it during your lifetime
- Name the property clearly and, ideally, an alternate beneficiary
After death, the beneficiary typically records an affidavit and a certified death certificate to show the title has passed.
Changing or revoking it.
You can revoke or replace the deed by recording a revocation or a later deed. Do not assume that a new will changes or cancels a deed that is already recorded.
Where it falls short.
- It only covers the named property, not bank accounts, vehicles, or the rest of the estate
- Creditors and recovery claims: a TOD deed does not erase debts, liens, or Medicaid estate recovery claims
- Community property: spousal rights may affect who must sign and what the beneficiary receives
- Several beneficiaries: siblings who inherit together may disagree about selling
- Beneficiaries with disabilities: leaving property directly to someone who receives SSI or Medicaid can cost them benefits
A TOD deed is inexpensive and simple. A trust offers more control: staged distributions, protection for minors or beneficiaries with disabilities, and a plan if you become incapacitated. We help clients choose.
See also our main page on transfer on death deeds.
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