Common Mistakes with Transfer on Death Deeds in Oklahoma

Transfer on Death (TOD) deeds are often described as simple, but Oklahoma courts apply the statutes strictly. Errors usually surface after death, when fixing them is costly or impossible. Here are the most common pitfalls and why they matter.

Mistake 1: Failing to Record the Deed

Signing and putting a TOD deed in a drawer does not work. 58 O.S. § 1252 requires recording the deed in the county land records before the owner dies. An unrecorded deed is void, which means probate may still be required.

Mistake 2: Naming Minors Without Planning

Minors cannot hold title directly. Naming a minor as the TOD beneficiary can trigger guardianship proceedings under 30 O.S. § 1-101 et seq., adding cost and court oversight. Use a trust or custodial arrangement instead if a child is intended to benefit.

Mistake 3: Multiple Beneficiaries Without Clarity

TOD deeds can list multiple beneficiaries, but ambiguity leads to disputes. Without clear percentages, survivorship terms, and what happens if someone predeceases the owner, default rules apply (often equal shares under 58 O.S. § 1253). Spell out percentages and backups in the deed.

Mistake 4: Conflicts with Trust Planning

If you already have a trust, naming individuals instead of the trust can pull the property out of your trust plan. The TOD deed will bypass the trust entirely, defeating coordinated management and long-term protections.

Mistake 5: Assuming TOD Deeds Protect from Creditors

Avoiding probate does not avoid creditors. Under 58 O.S. § 1256, property transferred by TOD deed remains subject to the deceased owner's creditors and estate expenses. Beneficiaries may still face claims against the property.

Mistake 6: Forgetting to Revoke or Update

Life changes such as divorce, remarriage, or death of a beneficiary require action. A TOD deed does not update automatically. Oklahoma law allows revocation, but it must also be recorded (58 O.S. § 1254). An outdated deed stays effective until formally changed.

Why These Errors Matter

Common TOD deed mistakes can lead to title defects, delayed sales or refinancing, unexpected court involvement, and family disputes. Careful drafting, timely recording, and regular updates keep the tool working as intended.

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This article is for general informational purposes and not legal advice. For advice tailored to your circumstances, consult an Oklahoma estate planning attorney or schedule a consultation.