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Bill > HF2422

IA HF2422

IA HF2422
A bill for an act relating to creation of transfer on death deeds and to disclaimers of an interest in real property.

summary

Introduced
02/12/2026
In Committee
02/12/2026
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill provides that an individual may execute a transfer on death deed which transfers real property outside of probate to one or more beneficiaries effective at the transferor’s death. To be valid, a transfer on death deed must contain the essential elements and formalities of a properly recordable inter vivos deed, state that the transfer to the designated beneficiary is to occur at the transferor’s death, and be recorded before the transferor’s death in the office of the county recorder. A transfer on death deed is revocable, even if the deed states that the deed is irrevocable. A transferor may revoke a transfer on death deed by acknowledging and recording an inconsistent transfer on death deed, or an instrument of revocation or inter vivos deed that expressly revokes the deed. A transfer on death dead is nontestamentary, and the capacity required to make or revoke a transfer on death deed is the same capacity required to make a will. A transfer on death deed is effective even if the beneficiary does not receive notice or delivery of the deed during the transferor’s lifetime, and even if the transferor does not receive consideration for the deed. During the transferor’s lifetime, a transfer on death deed does not affect the transferor’s interest in the property, including the right to transfer or encumber the property, nor does the transfer on death deed create a legal or equitable interest in favor of the designated beneficiary or subject the property to claims of a creditor of the designated beneficiary. If the transferor transfers the property that is the subject of a transfer of death deed before the transferor’s death, the transfer on death deed is of no effect at the death of the transferor. At the death of the transferor, subject to Code sections 633.238 (elective share of surviving spouse), 633.523 (uniform simultaneous death act), and 633.535 (felonious death), the property is transferred to the designated beneficiary if the designated beneficiary is alive. If the designated beneficiary predeceases the transferor, the interest of the designated beneficiary lapses. Subject to Code section 558.41 (recording), a beneficiary who takes property under a transfer on death deed takes the property subject to all conveyances, encumbrances, assignments, contracts, mortgages, liens, and other interests to which the property is subject at the transferor’s death. If the transferor owns the property as a joint tenant or as a tenant by the entirety, the transfer on death deed is only effective if the transferor is the last surviving joint tenant or tenant by the entirety. A beneficiary may disclaim all or part of the beneficiary’s interest as provided by Code chapter 633E (uniform disclaimer of property interest Act). To the extent that the transferor’s probate estate is insufficient to satisfy an allowed claim against the estate or a statutory allowance to a surviving spouse or child, the estate may enforce the liability against property transferred at the transferor’s death by a transfer on death deed. The bill provides an optional form of a transfer on death deed and an optional form for the revocation of a transfer on death deed. The bill does not affect any deed executed and recorded prior to the effective date of the bill and applies to a transfer on death deed made before, on, or after the effective date of the bill by a transferor dying on or after the effective date of the bill. The bill makes conforming changes.

AI Summary

This bill establishes a new legal mechanism called a "transfer on death deed" (TOD deed) that allows individuals to transfer real property to designated beneficiaries upon their death without going through probate, which is the legal process of settling an estate. To be valid, a TOD deed must meet the same requirements as a standard deed for recording, clearly state that the transfer occurs at the owner's death, and be officially recorded in the county recorder's office before the owner's death. Importantly, these TOD deeds are revocable, meaning the owner can change their mind and cancel them, even if the deed states otherwise, by recording a new TOD deed or a specific revocation document. The capacity needed to create or revoke a TOD deed is the same as that required to make a will, and the deed is effective even if the beneficiary doesn't know about it or receive it during the owner's lifetime, and no payment is required for the transfer. During the owner's life, the TOD deed doesn't affect their ownership rights, their ability to sell or mortgage the property, or expose the property to the beneficiary's creditors. If the owner sells the property before they die, the TOD deed becomes void. Upon the owner's death, the property transfers to the beneficiary, provided they are still alive, and the beneficiary receives the property subject to any existing liens or encumbrances. The bill also includes provisions for disclaiming interests received through a TOD deed and clarifies that if the owner's probate estate is insufficient to cover debts or allowances for a surviving spouse or child, those claims can be made against property transferred via a TOD deed. Optional forms for TOD deeds and their revocation are provided, and the law applies to deeds made before, on, or after its effective date, as long as the owner dies on or after that date.

Committee Categories

Justice

Sponsors (11)

Last Action

Introduced, referred to Judiciary. H.J. 273. (on 02/12/2026)

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