Transfer-on-Death Deed

TRANSFER ON DEATH DEED -- PENNSYLVANIA

STATUS: NOT AUTHORIZED FOR REAL PROPERTY

IMPORTANT NOTICE

Pennsylvania does NOT currently permit Transfer-on-Death (TOD) Deeds for real estate. As of April 2026, there is no enacted statute in Pennsylvania authorizing the transfer of real property interests via a TOD deed. Legislation (HB 2124) to adopt the Uniform Real Property Transfer on Death Act has been introduced but not enacted.

TABLE OF CONTENTS

1. Current Legal Status
2. Pending Legislation
3. What Pennsylvania Does Allow
4. Alternatives for Real Property Transfer
5. Comparison of Alternatives
6. Practitioner Checklist

SECTION 1 -- CURRENT LEGAL STATUS

Pennsylvania permits Transfer-on-Death (TOD) designations for securities only under 20 Pa.C.S. Chapter 64 (Uniform Transfer on Death Security Registration Act, effective February 16, 1997). This covers stocks, bonds, mutual funds, and other securities.

Pennsylvania does not permit:

• Transfer-on-Death deeds for real property
• Beneficiary deeds for real property
• Any nontestamentary deed instrument that transfers real estate upon death

SECTION 2 -- PENDING LEGISLATION

SECTION 3 -- WHAT PENNSYLVANIA DOES ALLOW

3.1 -- TOD for Securities

Under 20 Pa.C.S. Section 6401 et seq., securities may be registered in beneficiary form using TOD or POD designations. Upon the owner's death, securities pass directly to the named beneficiary.

Important Pennsylvania note: Under the state's version of the act, securities cannot be transferred to the beneficiary until Pennsylvania inheritance tax has been paid or 10-day advance notice of the transfer is given to the Pennsylvania Secretary of Revenue.

3.2 -- POD for Bank Accounts

Pennsylvania permits payable-on-death (POD) designations on bank accounts and certificates of deposit under 20 Pa.C.S. Chapter 63 (Multiple-Party Accounts).

3.3 -- TOD for Motor Vehicles

Pennsylvania does not currently permit TOD designations on motor vehicle titles.

SECTION 4 -- ALTERNATIVES FOR REAL PROPERTY TRANSFER

Alternative 1: Revocable Living Trust

Description: The property owner transfers the real property into a revocable living trust. Upon death, the trustee distributes the property per the trust terms without probate.

Statutory Authority: 20 Pa.C.S. Chapter 77 (Pennsylvania Uniform Trust Act)

Advantages:
☐ Avoids probate entirely
☐ Privacy
☐ Allows complex distribution plans
☐ Incapacity planning

Disadvantages:
☐ Higher cost to establish
☐ Requires retitling property into the trust
☐ Ongoing administration

Alternative 2: Joint Tenancy with Right of Survivorship

Description: The property owner adds the intended beneficiary as a joint tenant with right of survivorship. Upon death, the property passes automatically to the survivor.

Advantages:
☐ Simple and inexpensive
☐ Automatic transfer at death

Disadvantages:
☐ Immediate transfer of present ownership interest
☐ Exposes property to joint tenant's creditors
☐ May trigger gift tax consequences
☐ Loss of full control
☐ Subject to Pennsylvania inheritance tax

Alternative 3: Tenancy by the Entirety (Married Couples)

Description: Married couples may hold property as tenants by the entirety with automatic survivorship rights.

Advantages:
☐ Automatic transfer to surviving spouse
☐ Creditor protection from individual debts

Disadvantages:
☐ Available only to married couples
☐ Does not address transfer after both spouses die

Alternative 4: Last Will and Testament

Description: The property passes through probate under the owner's will.

Statutory Authority: 20 Pa.C.S. Chapter 25

Advantages:
☐ Simple and inexpensive to create
☐ Owner retains full control

Disadvantages:
☐ Requires probate (though Pennsylvania probate is relatively straightforward)
☐ Public record
☐ Subject to Pennsylvania inheritance tax

SECTION 5 -- COMPARISON OF ALTERNATIVES

SECTION 6 -- PRACTITIONER CHECKLIST

☐ Confirm TOD deed legislation has not been enacted (check current session)
☐ Assess client's estate planning goals and property holdings
☐ Evaluate alternatives based on client's situation
☐ If revocable trust selected, prepare trust agreement and deed transferring property to trust
☐ If joint tenancy selected, prepare and record new deed with survivorship language
☐ Advise client on Pennsylvania inheritance tax (20 Pa.C.S. Section 2101 et seq.)
☐ File Pennsylvania Realty Transfer Tax forms if applicable (72 P.S. Section 8102-C)
☐ Document client's informed decision regarding chosen alternative

SOURCES AND REFERENCES

• 20 Pa.C.S. Chapter 64 -- Transfer on Death Security Registration (securities only)
• 20 Pa.C.S. Chapter 63 -- Multiple-Party Accounts
• 20 Pa.C.S. Chapter 77 -- Pennsylvania Uniform Trust Act
• 20 Pa.C.S. Section 2101 et seq. -- Pennsylvania Inheritance and Estate Tax
• HB 2124 (2023-2024 Session) -- Proposed Uniform Real Property Transfer on Death Act
• Nolo, "Avoiding Probate in Pennsylvania" (2024)
• Heritage Elder Law, "What Is a Transfer-on-Death Deed?" (PA perspective)
• Uniform Real Property Transfer on Death Act (2009), Uniform Law Commission