Detailed Answer — How wills, transfer-on-death deeds, and payable-on-death designations interact in California
This is not legal advice. This article explains how different estate tools work in California so you can decide whether you need a revocable transfer-on-death (TOD) deed or a payable-on-death (POD) designation in addition to a will. For legal decisions, consult a licensed California attorney.
Short answer: Yes — in many cases you still need a TOD deed or POD designation if you want certain assets to bypass probate and transfer directly to your daughter. A will controls only property that goes through probate. Many assets pass outside probate by operation of title, beneficiary designation, or law. If you rely only on a will, assets that already have nonprobate transfer mechanisms (or that lack an appropriate one) may not pass the way you expect or may have to go through probate.
Why a will alone may not accomplish your goals
A will governs how a person’s probate estate is distributed after death. California probate law controls how the court administers probate estate assets. If an asset has a valid nonprobate transfer method (for example, a TOD deed on real property, POD beneficiary on a bank account, joint tenancy, or a retirement account beneficiary), that asset usually transfers outside probate to the named transferee or co-owner, regardless of what the will says. See the California Probate Code for how probate and nonprobate transfers are treated: Prob. Code §5301 and related provisions.
Revocable transfer-on-death (TOD) deed for real property
California allows a revocable transfer-on-death deed for real property. A properly executed TOD deed names a beneficiary who becomes the owner automatically when the grantor dies. A TOD deed can avoid probate for that parcel. See the California Probate Code provisions that govern transfer-on-death deeds: Prob. Code §5600 et seq.
Key points about TOD deeds:
- If you record a valid TOD deed naming your daughter, the property transfers to her outside probate when you die.
- If you do NOT record a TOD deed and only leave the property to your daughter in your will, the property may have to go through probate for the court to transfer title under the will.
- A TOD deed revocable at any time by the owner while alive; it does not create a present interest for the beneficiary and usually offers fewer creditor protections than some trusts.
Payable-on-death (POD) designations and bank/financial accounts
Most deposit accounts, brokerage accounts, and some other financial accounts allow you to name a payable-on-death or transfer-on-death beneficiary. A valid beneficiary designation typically overrides distribution by your will for that account and lets the account pass directly to the named person without probate.
Key points:
- If a bank account has a valid POD designation naming your daughter, the account will pass to her outside probate despite what the will says.
- If the account has no beneficiary (or the beneficiary is invalid or predeceased you), the account becomes part of your probate estate and the will controls distribution.
- Retirement accounts and life insurance use beneficiary designations and are governed by federal and state rules; those designations usually control over a will.
Which document controls if there is a conflict?
Nonprobate designations (TOD deeds, POD beneficiaries, beneficiary designations on retirement or insurance contracts, joint tenancy, community property with right of survivorship) generally control over a will because they operate outside probate. For example:
- If you recorded a TOD deed naming someone other than your daughter, that recorded deed governs transfer of the real property, even if your will leaves the property to your daughter.
- If a bank account names a POD beneficiary other than your daughter, the funds will go to the POD designee, not to your daughter under the will.
Because nonprobate transfers often trump a will, it’s important to make sure titles and beneficiary designations match your estate plan.
Hypothetical scenarios (to illustrate common outcomes)
1) You own a house in your sole name and your will leaves “all property to my daughter.” You never recorded a TOD deed. Outcome: the house is probably part of the probate estate and must pass through probate to transfer title to your daughter.
2) Same facts, but before death you record a valid TOD deed naming your daughter. Outcome: the house passes to your daughter outside probate at your death.
3) You have a bank account with no POD designation and your will leaves everything to your daughter. Outcome: the account likely goes through probate and is distributed under the will.
4) You have a bank account that names your sister as POD beneficiary, but your will leaves everything to your daughter. Outcome: the account will pass to your sister by POD designation; the will will not change that result.
Advantages and limits of using TOD/POD instead of relying only on a will
Advantages
- Avoids probate for named assets—faster, less public, often less costly.
- Simple to create for accounts (POD) and for real property (TOD deed).
Limits and risks
- Nonprobate transfers usually do not handle contingencies well (for example, what if your daughter dies first or you want staged distributions).
- They offer little or no protection from creditors after death.
- They do not appoint guardians for minor children or provide instructions for complex distribution rules (useful roles for wills or trusts).
- Title errors, incorrectly completed forms, or changes in circumstances can produce unintended results.
Practical next steps
- Inventory your assets and note title forms and beneficiary designations (real property title, bank accounts, brokerage accounts, retirement accounts, life insurance).
- Decide which assets you want to avoid probate for and name beneficiaries or record TOD deeds where appropriate.
- Double-check that beneficiary names and account registrations exactly match the intended recipient’s legal name and that forms are completed according to the institution’s rules.
- Coordinate your will with nonprobate designations — make sure they reflect your current wishes.
- Consider a revocable living trust if you want broader control of multiple assets, staged distributions, incapacity planning, or greater creditor/estate planning flexibility.
- Keep copies of important documents and review beneficiary designations periodically (after major life events such as marriage, divorce, births, or deaths).
When to consult a California attorney
Contact a California estate planning attorney if you have any of these issues:
- Complex or high-value estate or multiple properties in different counties or states.
- Minor children, blended family issues, or special needs beneficiaries.
- Potential disputes among heirs, or concerns about creditor claims.
- Unclear or inconsistent beneficiary designations or title documents.
An attorney can review how your will and any TOD/POD designations interact and suggest changes to ensure your daughter inherits as you intend.
References and further reading
- California Probate Code — transfer-on-death deed provisions: Prob. Code §5600 et seq.
- California Probate Code — probate vs. nonprobate transfers: Prob. Code §5301
- California Courts — general probate and estate planning self-help: courts.ca.gov — Probate Self-Help
Helpful Hints
- Don’t assume a will changes a properly titled nonprobate asset — beneficiary designations and recorded TOD deeds usually win.
- Small-value accounts sometimes can be collected with a small estate affidavit or by using summary probate procedures; ask an attorney about streamlined options.
- Recording a TOD deed for real property requires correct form and timely recording; check county recording rules.
- Keep beneficiary designations up to date — life events often mean you should review them.
- Use consistent, full legal names for beneficiaries and verify account-specific rules with your bank or institution.
- If you want privacy, speed, or staged distributions, consider a trust instead of only using POD/TOD devices.