Transfer-on-death deed

A transfer-on-death deed (TOD deed, sometimes called a beneficiary deed) lets a property owner name one or more beneficiaries who receive the property automatically when the owner dies, without probate. The deed must be signed and recorded during the owner's lifetime, and the owner can still sell, mortgage or revoke it at any time before death.

TOD deeds are allowed in a number of states, many of them based on the Uniform Real Property Transfer on Death Act, and not allowed in others. After the owner dies, the beneficiary usually records a death certificate or an affidavit to complete the transfer. For an investor, this means some inherited houses never appear in probate court. The new owner shows up in the deed records instead, often while the deceased owner's name is still on the tax bill. Look for recorded TOD deeds and death affidavits when you research an estate property. Rules vary by state; confirm with a local real estate attorney.

Source: uniformlaws.org