Transfer on Death Instrument (TODI) in Illinois
Pass Your Real Estate to the People You Choose and Skip Probate
- Keep Full Control of Your Property for as Long as You Live
- Avoid Probate on the Real Estate the TODI Covers
- Drafted, Recorded, and Handled In-House Through Mt. Vernon Title Company
Talk to a Southern Illinois Estate Planning Attorney
(618) 316-7322
What a Transfer on Death Instrument Does in Illinois
A Transfer on Death Instrument, or TODI, lets an Illinois property owner name who will receive their real estate when they die, while keeping full control of the property for the rest of their life. You stay the owner. You can live in the home, rent it, sell it, mortgage it, or change your mind and revoke the TODI entirely. The person you name has no rights and no say while you are alive. The transfer happens only at your death, and only then.
The reason people use a TODI is simple: it keeps that piece of real estate out of probate. Without a plan, a house often has to pass through the probate court before it can be sold or retitled, which costs time and money your family would rather keep. A properly drafted and recorded TODI lets the property move straight to the people you chose, without a probate case for that asset.
Olson & Reeves drafts, signs, and records Transfer on Death Instruments for clients across Southern Illinois, and our affiliated title company handles the after-death transfer when the time comes. We are based in Mt. Vernon, Illinois and serve Jefferson, Marion, Washington, Clinton, Wayne, Hamilton, Franklin, and the surrounding counties.
What Makes a TODI Valid in Illinois
A TODI is governed by the Real Property Transfer on Death Instrument Act (755 ILCS 27). The Act sets out exactly how the instrument has to be signed and recorded. Miss one of these steps and the TODI does not work, which is why the document is worth having a lawyer prepare rather than filling out a form and hoping it holds up.
To be valid, a TODI must be:
- Signed by the owner (or by someone signing at the owner’s direction and in the owner’s presence).
- Witnessed by at least two people who watch the owner sign. The witnesses cannot be the notary, and naming your beneficiary or the beneficiary’s spouse as a witness can void that person’s gift.
- Notarized, with the owner’s and the witnesses’ signatures acknowledged before a notary public.
- Recorded before the owner dies, in the office of the recorder in the county where the property sits.
That last point is the one people get wrong most often. A TODI that is signed and notarized but never recorded, or recorded only after the owner has died, does not transfer the property. An unrecorded TODI is worthless. We record the instrument for you so it is in place and effective from the start.
How a TODI Keeps Your Property Out of Probate
Probate is the court process that retitles a deceased person’s property when no other arrangement is in place. It takes months, it is public, and it costs money in court fees and attorney time. For many families, the home is the single asset that forces a full probate case that otherwise would not be needed.
A TODI is a nonprobate transfer. Because you named the beneficiary on a recorded instrument while you were alive, the real estate passes to that person automatically at your death, the same way a beneficiary on a life insurance policy or a payable-on-death bank account works. There is no court order required to move title. Your beneficiary still has paperwork to record (covered below), but they do not have to open a probate case for that property.
It is worth being clear about scope. A TODI covers only the specific real estate described in it. It is not a substitute for a full estate plan. Your other assets, and any real estate the TODI does not cover, may still need a will, a trust, or other planning. We look at the whole picture so the TODI fits the rest of your plan instead of leaving a gap.
What Your Beneficiary Does After You Die
The TODI does the heavy lifting while you are alive. After your death, your beneficiary takes a few steps to clear the record and put the property formally in their name. They record a notice of death affidavit and acceptance with the county recorder, along with a certified copy of your death certificate. That document tells the public record that you have died, identifies the beneficiary, and shows that the beneficiary is accepting the property.
There are deadlines tied to this filing under the Act, and a beneficiary who waits too long can run into problems, so this is not a step to put off. Because Olson & Reeves and Mt. Vernon Title Company are the same office that drafted and recorded the TODI, your family can bring the after-death transfer right back to us. We prepare and record the affidavit and acceptance, clear the title, and get the property properly into your beneficiary’s name.
TODI vs. Life Estate Deed vs. Joint Tenancy
A TODI is one of several ways to pass Illinois real estate at death without probate. The two best-known alternatives are a life estate deed and joint tenancy. They all avoid probate on the home, but they treat your control very differently while you are alive. Here is how they compare.
| Feature | TODI | Life Estate Deed | Joint Tenancy |
| Avoids probate on the property | Yes | Yes | Yes (at first owner’s death) |
| You keep full control while alive | Yes | No | No |
| Sell or mortgage without the beneficiary’s consent | Yes | No | No |
| Revocable any time during your life | Yes | No (needs all parties) | No (needs all parties) |
| Beneficiary’s creditors can reach the property now | No | Yes | Yes |
The pattern is easy to see. A life estate deed and joint tenancy both give the other person a present interest in your property the moment you sign, which limits what you can do with your own home and exposes it to their creditors and divorces. A TODI gives away nothing until you die, so you keep complete control and your beneficiary’s problems stay their problems. For most clients who simply want a home to pass to a child or loved one without probate, the TODI is the cleaner tool.
The Act Now Covers More Than Just a House
The law started life as a residential-only statute. A 2022 amendment broadened it, and a TODI may now be used for any real property in Illinois, not only a primary residence. That means farmland, a rental, a vacation property, or commercial real estate can pass by TODI as well, as long as the instrument is drafted and recorded correctly. We confirm your particular property qualifies and draft the instrument to fit it.
Mt. Vernon Title Company: Drafted and Recorded Under One Roof
Olson & Reeves co-owns and operates Mt. Vernon Title Company. That matters for a TODI. The same office can run the title, confirm the legal description and ownership, draft the instrument, and record it with the county, then handle the after-death affidavit and acceptance when the time comes. You are not bouncing between a lawyer and a separate title office. For a wider look at our deed and closing work, see our Southern Illinois real estate and title attorneys page, and to see how a TODI fits a full plan, our Southern Illinois estate planning lawyers page.
Transfer on Death Instrument FAQ
What is a Transfer on Death Instrument in Illinois?
A Transfer on Death Instrument (TODI) is a recorded document that names who receives your Illinois real estate when you die, while you keep full ownership and control during your life. You can sell, mortgage, or revoke it at any time. At your death, the property passes to your named beneficiary without going through probate for that asset.
It works much like naming a beneficiary on a life insurance policy or a bank account, except it applies to real estate. The TODI is governed by the Illinois Real Property Transfer on Death Instrument Act.
What are the requirements for a valid TODI in Illinois?
To be valid, a TODI must be signed by the owner, witnessed by at least two people who are not the notary, notarized, and recorded with the county recorder before the owner dies. If any of those steps is missing, the instrument fails and the property does not transfer. The witnesses also should not be the beneficiary or the beneficiary’s spouse.
The recording requirement is the one people overlook most. A TODI that is signed and notarized but never recorded, or recorded only after death, does not work. We handle the recording so your instrument is effective from the moment it is filed.
Does a TODI avoid probate in Illinois?
Yes. A properly drafted and recorded TODI is a nonprobate transfer, so the real estate it covers passes directly to your named beneficiary at your death without a probate case for that property. This saves your family the time, cost, and public court process that probate of a home usually requires.
Keep in mind a TODI only covers the specific real estate described in it. Your other assets may still need a will, a trust, or additional planning, which is why a TODI is best used as part of a complete estate plan rather than on its own. Learn more on our Southern Illinois probate attorneys page.
Can I sell or mortgage my house after I sign a TODI?
Yes. A TODI gives your beneficiary no rights or interest in the property while you are alive. You remain the full owner and can sell it, refinance it, mortgage it, rent it, or deed it to someone else, all without your beneficiary’s consent or even their knowledge. The beneficiary only receives whatever you still own at your death.
This is one of the biggest advantages of a TODI over a life estate deed or joint tenancy, both of which give the other person a present interest that ties your hands. With a TODI, the property stays fully yours to manage.
Can I change my mind or revoke a TODI?
Yes. A TODI is completely revocable during your lifetime. You can revoke it, replace it with a new one naming a different beneficiary, or sell the property out from under it, all without anyone’s permission. Because the beneficiary has no vested interest while you are alive, you never need their agreement to make a change.
A revocation has to be done correctly and recorded to be effective, the same as the original instrument. We prepare and record the revocation or the replacement TODI so the change actually takes hold on the public record.
What does my beneficiary have to do after I die?
After your death, your beneficiary records a notice of death affidavit and acceptance with the county recorder, along with a certified copy of your death certificate. That filing confirms your death, identifies the beneficiary, and shows they are accepting the property, which clears the record and puts the real estate formally in their name.
The Act sets deadlines for this filing, so a beneficiary should not wait. Because we drafted and recorded the original TODI, your family can bring the after-death transfer back to the same office, and we prepare and record the affidavit and acceptance for them.
How is a TODI different from a life estate deed or joint tenancy?
All three avoid probate on the home, but a TODI is the only one that lets you keep full control while you are alive. A life estate deed and joint tenancy each give the other person a present interest the moment you sign, so you cannot sell, mortgage, or revoke without involving them, and the property is exposed to their creditors and divorces.
A TODI gives away nothing until your death, so your control is complete and your beneficiary’s financial problems stay separate from your property. For most people who want a home to pass to a loved one without probate, a TODI is the cleaner choice. See the comparison table above for a side-by-side view.
Can a TODI be used for farmland or a rental property?
Yes. The law began as a residential-only statute, but a 2022 amendment expanded it. A TODI may now be used for any real property in Illinois, including farmland, rental property, a vacation home, or commercial real estate, as long as it is drafted and recorded correctly. We confirm your property qualifies and prepare the instrument to fit it.
This broader scope makes the TODI a flexible planning tool for Southern Illinois families who own more than just a primary residence, such as a farm passed down through generations or a rental that funds retirement.
Do I need a lawyer to prepare a TODI?
You are not strictly required to use a lawyer, but a TODI fails entirely if the signing, witnessing, notarizing, or recording is done wrong, and that failure usually surfaces after death when it is too late to fix. A correctly prepared and recorded instrument is the whole point, which is why most people have an attorney handle it.
There is also the question of whether a TODI is even the right tool for your situation. We look at how the property is titled, who you want to receive it, and how it fits the rest of your plan before drafting, so the instrument does what you actually want it to do.
Ready to Set Up a Transfer on Death Instrument?
A TODI is a straightforward way to pass your Illinois real estate to the people you choose while keeping full control of it during your life. Olson & Reeves will confirm it is the right tool for you, draft it, and record it through Mt. Vernon Title Company, then handle the transfer for your family when the time comes.
Call us today at (618) 316-7322 or fill out the form below to get started.