Jun 6, 2026
Older Americans in the baby boomer and Silent Generations hold a massive amount of residential property that’s worth roughly $13.8 trillion, but experts are warning they need to think about how they’ll pass on that property to their heirs.
Those from these generations have a high homeownership rate, 78.6%, which translates to 29.6 million homes in the U.S. — that’s 34.1% of all owner-occupied housing units — according to an analysis of Census Bureau data by the National Association of Home Builders (NAHB).
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That $13.8 trillion in housing value makes up about one-third of total U.S. residential property value, the NAHB says.
But when it comes to how these Americans will transfer this property when they die, estate planning experts are sounding the alarm on the potential costs.
Planning for a property transfer
For many Americans, their home is the most valuable asset they will leave to their heirs.
A transfer on death deed (TODD) is a legal document that transfers ownership of a real property after the owner dies. This direct transfer allows the property to be transferred directly without going through probate.
According to a report from USA Today, TODDs have become more popular in the last few decades because they are simple and low cost.
While not all states allow TODDs, also known as beneficiary deeds, more than 30 states do allow them, and a few other states allow similar deeds known as Lady Bird deeds or enhanced life estate deeds, according to legal self-help platform NOLO.
So your plan will begin with what’s possible in your state.
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Can a TODD really save you thousands?
Since a property can bypass probate under a TODD, it can definitely save you time and money.
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According to digital estate-planning platform Trust & Will, common estimates of the cost of probate are between 3% to 7% of the estate’s total value, and the average duration of the probate process is 20 months. Depending on the value of the estate, that can easily eat up thousands.
If you’re using a lawyer to set up a trust instead, it is typically much more expensive than it is to establish a TODD, according to NOLO. TODDs generally tend to cost hundreds, whereas a trust can cost thousands to create and maintain, attorneys told USA Today.
While you can save thousands opting for a TODD, it’s best to make sure it’s suitable for your family’s home transfer first.
Who is a TODD right for?
When it comes to estate planning, it’s important to consider your personal situation.
“Every family is different,” Michael Chuah, a Los Angeles-based attorney told USA Today. “They need to look at their assets to make the decision of whether to use a TODD or trust.”
The scope of a TODD is limited to the property it applies to, whereas a living trust can name beneficiaries for a more vast variety of things like bank accounts or tangible heirlooms.
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But if you don’t have a large or complex estate, a TODD could make sense for you.
TODDs are “best used for smaller estates,” Don Ford, an attorney at Ford + Bergner LLP, told USA Today. “They avoid probate and are not as complicated as trusts.”
It’s worth noting, though, that TODDs don’t account for unique scenarios, such as when a family member is alive but becomes incapacitated. In such a case, “the heir legally owns nothing and has zero rights to manage the house,” Chuah told USA Today.
For families with large and complex estates, trusts likely make more sense. A trust will also allow you to name someone to co-manage the trust and all assets within it for your benefit in the event of incapacitation, lawyers told USA Today.
Chuah likened a TODD to “a surgical tool for a very specific purpose, to avoid probate, but it’s not doing much else,” while “a trust is a whole tool box,” he said.
Your estate planning needs will come down to your family’s specific circumstances, but the most important thing when it comes to estate planning is being proactive, putting your plan in action and letting your loved ones know what your wishes are.
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
