Transfer-on-Death Deed

TRANSFER-ON-DEATH DEED — KENTUCKY

⚠ IMPORTANT: TOD DEEDS ARE NOT YET AUTHORIZED IN KENTUCKY

TABLE OF CONTENTS

1. Current Legal Status
2. Pending Legislation — SB 34 (2026)
3. Proposed TOD Deed Requirements
4. Alternative Estate Planning Methods
5. Comparison of Alternatives
6. Draft TOD Deed Form (For Use ONLY If Enacted)
7. State-Specific Notes
8. Sources and References

1. CURRENT LEGAL STATUS

As of April 2, 2026, Kentucky does NOT recognize transfer-on-death deeds for real property.

Kentucky is among the minority of states that has not yet enacted legislation authorizing TOD deeds. A TOD deed recorded in Kentucky under current law would have no legal effect and would NOT transfer title upon death.

2. PENDING LEGISLATION

Senate Bill 34 — 2026 Regular Session

Key provisions of SB 34:

• Creates the Kentucky Uniform Real Property Transfer on Death Act
• Authorizes TOD deeds as nontestamentary instruments
• Requires recording before the transferor's death
• Requires acknowledgment before a notary public
• Specifies that the transferor retains full ownership rights during life
• Provides for revocation by the transferor at any time
• Establishes that the deed has no effect until the transferor's death

3. PROPOSED TOD DEED REQUIREMENTS

If SB 34 is enacted, a valid Kentucky TOD deed would likely require:

☐ Executed by the property owner (transferor) with legal capacity

☐ Acknowledged before a notary public or authorized officer

☐ Recorded in each county where the property is located

☐ Recorded BEFORE the death of the transferor

☐ Contains an express statement that the transfer is effective only at death

☐ Identifies the grantee beneficiary by name

☐ Contains a legal description of the real property

4. ALTERNATIVE ESTATE PLANNING METHODS

Until TOD deed legislation is enacted, Kentucky property owners may use the following alternatives to avoid or simplify probate:

A. Revocable Living Trust

• Transfer property to a revocable trust during your lifetime
• Name beneficiaries to receive property upon your death
• Avoids probate entirely for trust assets
• Provides management during incapacity
• Cost: Higher upfront legal fees ($1,500–$3,500+)

B. Joint Tenancy with Right of Survivorship

• Add a co-owner to the deed with survivorship language
• Property passes automatically to the surviving owner
• Risk: Exposes property to the co-owner's creditors, divorce, and tax consequences
• Risk: Loss of exclusive control during lifetime
• Kentucky recognizes joint tenancy if clearly stated in the deed

C. Life Estate Deed

• Transfer a remainder interest while retaining a life estate
• Property passes to the remainderman at death without probate
• Limitation: Transferor cannot sell or mortgage without remainderman's consent
• Limitation: Not easily revocable

D. Kentucky Small Estate Procedures

• Estates valued at $15,000 or less in personal property may use a small estate affidavit (KRS § 391.030)
• Dispensing with administration available for small estates (KRS § 395.455)
• Limitation: Real property generally still requires probate or other transfer

E. Payable-on-Death / Transfer-on-Death Accounts

• Available for bank accounts and securities under KRS Chapter 391
• Does NOT apply to real property

5. COMPARISON OF ALTERNATIVES

6. DRAFT TOD DEED FORM (For Use ONLY If Enacted)

⚠ DO NOT RECORD THIS FORM UNTIL KENTUCKY HAS ENACTED TOD DEED LEGISLATION. ⚠

TRANSFER-ON-DEATH DEED

Return recorded document to:
[________________________________]
[________________________________]
[________________________________]

Property Address:
[________________________________]
[________________________________]

Tax Parcel ID / PVA Map Number: [________________________________]

THIS DEED IS A NONTESTAMENTARY INSTRUMENT EFFECTIVE ONLY UPON THE DEATH OF THE TRANSFEROR. THIS DEED DOES NOT TRANSFER OWNERSHIP UNTIL THE TRANSFEROR'S DEATH.

TRANSFEROR (Current Owner):

Name: [________________________________]
Address: [________________________________]
Date of Birth: [__/__/____]

BENEFICIARY DESIGNATION:

I, the undersigned Transferor, hereby designate the following individual(s) as beneficiary(ies) to receive the described real property, effective upon my death:

Primary Beneficiary(ies):

Alternate Beneficiary (if primary predeceases Transferor):

PROPERTY DESCRIPTION:

County: [________________________________], Commonwealth of Kentucky

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Being the same property conveyed to the Transferor by deed recorded in Deed Book [____], Page [____], in the Office of the [________________________________] County Clerk.

TRANSFER-ON-DEATH DESIGNATION:

Pursuant to the Kentucky Uniform Real Property Transfer on Death Act (KRS Chapter 391), this deed shall transfer the Transferor's interest in the above-described real property to the designated Beneficiary(ies) effective upon the Transferor's death, subject to all encumbrances of record at the time of death.

This deed is REVOCABLE. The Transferor retains full power and authority to:

• Use, occupy, and enjoy the property
• Sell, lease, mortgage, or encumber the property
• Revoke this deed at any time before death

This deed does NOT:

• Transfer any present interest to the Beneficiary
• Require delivery to or acceptance by the Beneficiary
• Require consideration
• Affect any rights of the Transferor's creditors

TRANSFEROR'S SIGNATURE:

Signature: ________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

ACKNOWLEDGMENT:

STATE OF KENTUCKY
COUNTY OF [________________________________]

On this [____] day of [________________________________], [____], before me, the undersigned notary public, personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.

Witness my hand and official seal.

Notary Public: ________________________________________
My Commission Expires: [__/__/____]
Notary ID: [________________________________]

[NOTARIAL SEAL]

7. STATE-SPECIFIC NOTES

Homestead Exemption

• Kentucky provides a homestead exemption of $39,300 (indexed; verify current amount) under KRS § 427.060
• If enacted, a TOD deed should not affect the homestead exemption during the transferor's lifetime

Kentucky Inheritance Tax

• Kentucky imposes an inheritance tax on transfers to non-exempt beneficiaries (KRS Chapter 140)
• Class A beneficiaries (spouse, children, grandchildren, parents, siblings) are exempt
• Class B and Class C beneficiaries may owe inheritance tax
• Consult a tax advisor regarding the tax treatment of TOD deed transfers

Medicaid / Long-Term Care

• Kentucky Medicaid estate recovery may apply to property transferred by TOD deed after the transferor's death
• A TOD deed does NOT protect property from Medicaid estate recovery
• Consult an elder law attorney for Medicaid planning

Recording

• Kentucky real property records are maintained by County Clerks
• Recording fees vary by county

8. SOURCES AND REFERENCES

• Kentucky SB 34 (2026 Regular Session): apps.legislature.ky.gov
• Kentucky Revised Statutes, Chapter 391: legislature.ky.gov
• Uniform Real Property Transfer on Death Act (URPTODA): uniformlaws.org
• KRS § 427.060 (Homestead Exemption)
• KRS Chapter 140 (Inheritance Tax)

This template is provided for informational and educational purposes only. It does not constitute legal advice. Transfer-on-death deeds are NOT currently authorized in Kentucky. Consult a licensed Kentucky attorney before executing any estate planning document.

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