Colorado Transfer on Death Deed (Beneficiary Deed) Guide
Colorado's beneficiary deed under C.R.S. 15-15-401 names who gets your real property at death, skips probate, must be recorded before death, stays revocable.
Colorado lets you name who will receive your real estate when you die using a document called a beneficiary deed. Most people know it by the more common name: a transfer on death deed, or TOD deed. You sign and record it now, you keep full control of the property while you are alive, and the person you name takes title at your death without probate.
The Colorado General Assembly authorized these deeds in 2004. The rules live in the Colorado Revised Statutes at C.R.S. 15-15-401 through 15-15-415, the part titled "Transfer of Real Property Effective on Death."
This guide walks through what a beneficiary deed does, how to execute and record one, how to revoke it, and one Colorado-specific catch around Medicaid that you need to know before you sign.
What a Beneficiary Deed Does
A beneficiary deed is a deed you record during your lifetime that names a grantee-beneficiary to receive your real property when you die. C.R.S. 15-15-401 defines it as "a deed, subject to revocation by the owner, which conveys an interest in real property and which contains language that the conveyance is to be effective upon the death of the owner."
Here is the key point. The deed does nothing while you are alive. Under C.R.S. 15-15-402, "during the lifetime of the owner, the grantee-beneficiary shall have no right, title, or interest in or to the property." You stay the full owner. You can live in the home, rent it, sell it, mortgage it, or tear up the plan entirely. The beneficiary has no say.
Title passes only at your death. C.R.S. 15-15-407 states that title to the property "shall vest in the designated grantee-beneficiary only on the death of the owner." Because the property passes by the deed and not through your will, it skips probate for that property. The beneficiary does not need to open an estate or hire a lawyer to take the home.
A beneficiary deed can name a single person, more than one person, or an entity. You can also name a successor grantee-beneficiary who takes the property if your first choice dies before you do (C.R.S. 15-15-401).
How to Execute and Record One
Getting a beneficiary deed right comes down to two things: signing it correctly and recording it before you die. Miss either one and the deed fails.
The deed must use death-transfer language
Under C.R.S. 15-15-404, the deed must contain "the words 'conveys on death' or 'transfers on death' or otherwise indicates the transfer is to be effective on the death of the owner." This language is what tells the world the transfer happens at death, not now. A plain deed without it will not work as a beneficiary deed.
Sign the deed before a notary
A beneficiary deed is signed by the owner and, to be recordable, acknowledged before a notary public, the same way you would sign any deed you intend to record. C.R.S. 15-15-406 makes the deed subject to the recording requirement in section 38-35-109(2), which calls for the beneficiary's legal mailing address to appear on the deed, and it allows the deed to be acknowledged under section 38-35-101. Acknowledging the deed before a notary is what lets the county clerk and recorder accept it for recording.
The deed must be recorded before death
This is the rule people get wrong most often. The beneficiary deed must be recorded, before your death, in the office of the clerk and recorder in the county where the real property sits (C.R.S. 15-15-404). A deed you sign and tuck in a drawer has no legal effect. If you die before it is recorded, the deed does nothing, and the property passes through your will or under Colorado's intestacy rules instead.
So the workflow is simple:
| Step | What you do |
|---|---|
| 1. Draft | Prepare a deed with the full legal description and "transfers on death" or "conveys on death" language |
| 2. Name | Name your grantee-beneficiary, and a successor beneficiary if you want one |
| 3. Sign | Sign in front of a notary public |
| 4. Record | Record it with the county clerk and recorder where the property is located, before death |
Recording fees are set by each county clerk and recorder, so check with the office where your property sits for the current charge.
You Keep Full Control While You Are Alive
A beneficiary deed does not tie your hands. You remain the owner with all the rights you had before.
You can sell the property, and the sale wipes out the beneficiary's future interest because there is nothing left to pass. You can refinance or take out a new mortgage. You can lease it. You can give it away. None of this requires the beneficiary's signature, consent, or even their knowledge. C.R.S. 15-15-402 says the "joinder, signature, consent, or agreement of, or notice to, a grantee-beneficiary" is not required, and the deed "need not be supported by consideration."
This is what makes the beneficiary deed attractive. You get the probate-skipping result at death without giving up any control today.
How to Revoke or Change a Beneficiary Deed
You can change your mind at any time while you are alive. C.R.S. 15-15-405 lays out two ways to revoke.
- Record a revocation. Sign an instrument that describes the property and states that it revokes the deed, then record it with the county clerk and recorder before your death.
- Record a new beneficiary deed. A later beneficiary deed revokes all earlier grantee-beneficiary designations for that property, even if the new deed does not transfer your whole interest.
A revocation only counts if it is recorded before you die. The most recently executed deed or revocation that gets recorded before your death controls, regardless of the order in which documents were recorded. As with the original deed, you do not need the beneficiary's consent or notice to revoke.
One thing you cannot do: revoke a beneficiary deed through your will. C.R.S. 15-15-405 states that a beneficiary deed "may not be revoked, altered, or amended by the provisions of the will of the owner." If you want to undo the deed, you have to record a revocation or a new deed. Leaving the property to someone else in your will does not override a recorded beneficiary deed.
Creditors and the Medicaid Catch
A beneficiary deed avoids probate, but it does not erase debts, and Colorado attaches a Medicaid rule you should not overlook.
The property can still answer for your debts
Passing outside probate is not the same as passing free of claims. Under C.R.S. 15-15-103, a person who receives property through a nonprobate transfer, including a beneficiary deed, can be liable to your probate estate for allowed creditor claims and family allowances when the probate estate itself does not have enough to cover them. That liability is capped at the value of what the beneficiary received.
There is a time limit on this. C.R.S. 15-15-411 bars most creditor claims against the beneficiary one year after the owner's death. So creditors are not shut out by the deed, but they do face a deadline.
A beneficiary deed disqualifies you from Medicaid while it is in effect
This is the Colorado-specific catch, and it surprises people. C.R.S. 15-15-403, titled "Medicaid eligibility exclusion," says that a person who is an applicant for or recipient of medical assistance "shall not be entitled to such medical assistance if the person has in effect a beneficiary deed." In plain terms, as long as a beneficiary deed is on record, it can block your Medicaid eligibility for long-term care.
A beneficiary deed is also not a way around Medicaid estate recovery after death. Under C.R.S. 15-15-407(4), the grantee-beneficiary takes the property subject to the state's claim to recover medical-assistance payments, so the deed does not put the home beyond Medicaid's reach.
If Medicaid coverage for nursing home or long-term care is a real possibility for you, talk to an elder law attorney before recording a beneficiary deed. A revocable living trust or a different planning tool may fit your situation better. We cover the broader trade-offs in our Colorado revocable living trust guide.
Common Questions
Does my beneficiary need to know about the deed or sign it?
No. C.R.S. 15-15-402 says the joinder, signature, consent, or notice to the grantee-beneficiary is not required. You can record the deed, change it, or revoke it without telling the beneficiary.
What happens if my beneficiary dies before I do?
If you named a successor grantee-beneficiary, that person takes the property at your death (C.R.S. 15-15-401). If you did not name a successor and your beneficiary dies first, the deed has no one to pass the property to, and the property goes through your will or Colorado intestacy instead.
Can I name more than one beneficiary?
Yes. A beneficiary deed can name one or more persons or an entity capable of holding title (C.R.S. 15-15-401). Spell out the shares clearly so there is no question about how the property splits.
Does the property get a stepped-up basis?
Property passing by beneficiary deed is generally treated as passing at death, which can matter for the income tax basis your beneficiary inherits. Tax outcomes depend on your facts, so confirm the details with a tax professional.
What if I have a mortgage on the property?
Recording a beneficiary deed does not pay off your loan. Your beneficiary takes the property subject to any mortgage or lien still attached at your death, and they will need to handle the loan to keep the home.
How This Fits Into Your Estate Plan
A beneficiary deed is a focused tool. It moves one piece of real estate to one set of people at death. It is not a full plan on its own.
Here is how it sits alongside your other documents:
- It does not replace a will. The deed only handles the property it names. You still need a will for everything else, and for naming a guardian if you have minor children. Start with our Colorado estate planning basics guide.
- It is simpler than a trust, with trade-offs. A beneficiary deed is cheap and easy, but it only covers real estate and it carries the Medicaid issue above. A revocable living trust can hold many assets and add more control. The national will vs trust comparison breaks down when each makes sense.
- It works with probate, not against it. If a beneficiary deed fails because it was never recorded, or if the named beneficiary dies before you and no successor is named, the property falls back into probate. Knowing how that process works helps. See our Colorado probate guide.
For most people, a beneficiary deed is one part of a plan, used to keep a home out of probate, paired with a will and the right health and financial powers.
The Bottom Line
A Colorado beneficiary deed is a low-cost way to pass real estate to the people you choose without probate. Sign it before a notary, use "transfers on death" or "conveys on death" language, and record it with your county clerk and recorder before you die. You keep full control of the property while you are alive, and you can revoke or change the deed any time by recording a new document.
Two cautions before you sign. The property can still answer for your debts after death, and a recorded beneficiary deed can block your Medicaid eligibility while it is in effect. If long-term care planning is on your mind, get advice from an elder law attorney first.
When you are ready, a Colorado real estate or estate planning attorney can draft the deed with the correct legal description and confirm it fits the rest of your plan.
Official Sources
- "C.R.S. 15-15-401, Definitions," Colorado General Assembly, Colorado Revised Statutes, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-402, Real property - beneficiary deed," Colorado General Assembly, Colorado Revised Statutes, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-403, Medicaid eligibility exclusion," Colorado General Assembly, Colorado Revised Statutes, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-404, Form of beneficiary deed - recording," Colorado General Assembly, Colorado Revised Statutes, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-405, Revocation - change - revocation by will prohibited," Colorado General Assembly, Colorado Revised Statutes, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-407, Vesting of ownership in grantee-beneficiary," Colorado General Assembly, Colorado Revised Statutes, https://leg.colorado.gov/colorado-revised-statutes
Sources
- "C.R.S. 15-15-401, Definitions," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-402, Real property - beneficiary deed," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-403, Medicaid eligibility exclusion," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-404, Form of beneficiary deed - recording," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-405, Revocation - change - revocation by will prohibited," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-406, Acknowledgment," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-407, Vesting of ownership in grantee-beneficiary," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-103, Liability of nonprobate transferees for creditor claims and statutory allowances," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
- "C.R.S. 15-15-411, Limitations on actions and proceedings against grantee-beneficiaries," Colorado General Assembly, https://leg.colorado.gov/colorado-revised-statutes
This guide is general information, not legal advice. Consult a qualified attorney about your situation. It is not legal advice.
Related Colorado Resources
Colorado Revocable Living Trust Guide
Colorado revocable living trust explained under the Colorado Uniform Trust Code (C.R.S. 15-5-101): how it avoids probate, funding, the pour-over will, and TOD deeds.
Colorado Estate Planning Basics: Documents Every Adult Should Have
Colorado estate planning basics under the Colorado Probate Code (C.R.S. Title 15): the will, durable power of attorney, and health care directives you need.
Colorado Trust Administration: Successor Trustee Guide
Colorado successor trustee duties after a settlor's death under the Colorado Uniform Trust Code (C.R.S. 15-5-101): the 60-day notice, debts, taxes, and distribution.
Colorado Advance Directives and Medical Power of Attorney
How Colorado advance directives work: the living will, medical durable power of attorney, CPR directive, and MOST form, plus proxy rules when no document exists.