New Law LetsHomeowners in This State Transfer Property Without Probate
Source
American Shipper
Post Date
09/30/2025
When a person dies, they might expect their remainingassets to follow a common sense line of succession,passing first to their spouse, then to their children. But even whenthese lines of succession are clearly outlined, assets fall through, burdeningsurviving family members with a costly probate process.
That? exactly what happened to Margaret Miller afterher husband, David, unexpectedly died only two years after they put theirshared assets in a revocable living trust, the Cape Gazette reports.Somehow, $850,000 worth of assets remained titled in David? name alone,leaving Margaret to navigate probate amid her grief.
In the , it cost her close to $10,000 just to claim whatwas always meant to be hers.
Their story is not uncommon. But now, homeowners in Delaware have anotheroption in their estate planning toolbox: a transfer on death deed for theirhome. This September, Gov. Matt Meyer signed the Transfer on Death Act, making it so homeownerscan pass on real estate to heirs by designating a beneficiary during theirlifetime.
What is a transfer on death (TOD) deed?
A transfer on death deed is almost exactly what it soundslike: a deed that allows the title to transfer to a named beneficiary upon thedeath of the deed holder.
With this new tool, Delaware homeowners can name abeneficiary who will receive the property automatically upon the owner? death.The homeowner retains full control during their lifetime, with the freedom tosell or revoke the deed anytime.
The transfer on death deed also supersedes any writtenwill, preventing any additional confusion or costly litigation following ahomeowners death.
With the new law, Delaware becomes the 33rd state with a TODor beneficiary deed, joining nearby Washington, DC, and New York.
Why Delaware passed this law now
The timing of the Transfer on Death Act aligns with broaderhousing challenges in Delaware and beyond. As affordability gaps widen and morefamilies find themselves locked out of legal ownership due to probate delays orunclear titles, the law offers a low-cost native that brings more clarityand control to property transfers.
Housing advocates, including AARP Delaware and United Wayof Delaware, praised the move as a practical step toward preventing heirs?roperty issues and reducing barriers to s homeownership?specially incommunities historically excluded from generational wealth-building tools.
Who this law helps?nd who should be cautious
The greatest beneficiaries of this law are families withsimple estates, where their greatest asset is their home. All too often, thesefamilies believe they have too little to protect, or that what they do havewill naturally pass to their surviving families.
However, this isn? always the case. Even small estatespass through probate in Delaware, placing a burden on low-income families,heirs of aging homeowners without wills, or heirs dealing with tangled titles,which is when the name of the living person in the home isn? on the deed.
With a transfer on death deed, though, homes canimmediately pass to children, spouses, or any other named beneficiary, avoidingprobate.
While this is an important and useful tool, it shouldn? beused as a single all-encompassing solution. Alone, a TOD is not a replacementfor a comprehensive will or trust, which can include various types of assetslike bank accounts, life insurance policies, stocks, or bonds.
Tangled titles, solved? Why this could be a game changer
Sheila Grant, AARP Delaware? associate state director ofadvocacy, told Delaware Online thattangled titles are especially common in Wilmington and nearby Philadelphia. Inthese cities, homes are often passed informally between family members.
That can an insurmoun obstacle for taking fulladvantage of an inheritance. Without a deed, you cannot sell your home, securehomeowners insurance, or take out a loan against the home. But you willstill be responsible for paying property taxes and keeping the home up to date.That can put the home at greater risk for tax delinquency and resultingforeclosure.
Delaware? new law aims to prevent this spiral by offeringa simple, proactive solution.
What this means for the future of housing and inheritancelaw
Delaware? new Transfer on Death Act is an important steptoward democratizing inheritance law and protecting intergenerationalwealth?nd the timing couldn? be more urgent. Baby boomers hold anestimated $18 trillion to $19 trillion inhousing wealth, yet nearly half of adults over the age of 50 lack a will,according to AARP.
Simple, accessible tools like TOD deeds could play acrucial role in preventing wealth loss, legal disputes, and propertyinstability.
As more states confront the rising costs of probate,tangled titles, and housing inequity, Delaware? law may serve as a model forhow to make estate planning more equi, affordable, and aligned with therealities of today? homeowners.
