Indiana — Do You Need a Transfer-on-Death Deed or Payable-on-Death Designation if Your Will Leaves Everything to Your Daughter? | Indiana Probate

Detailed answer — How wills, transfer-on-death deeds, and payable-on-death designations interact under Indiana law

Short answer: Possibly — a will alone does not always accomplish an automatic, out-of-probate transfer of every asset. In Indiana, many common assets pass outside the will by operation of title or beneficiary designation (and other assets require probate to transfer). Using a transfer-on-death (TOD or beneficiary) deed for real estate or a payable-on-death (POD) designation for bank accounts can avoid probate and move those specific assets directly to the named beneficiary. Which tool you need depends on how each asset is titled and whether you want probate to be involved.

Why a will might not be enough

A will controls how the probate court distributes assets that are part of your probate estate. If property is owned in a way that already names a survivor or beneficiary, that transfer usually occurs outside probate and is governed by the title or beneficiary form — not by the will. Common examples:

Bank accounts with a POD beneficiary or payable-on-death clause usually transfer directly to the named beneficiary when the account owner dies.
Retirement accounts and life insurance pay the proceeds to the named beneficiary on the account or policy forms, regardless of what a will says.
Real estate titled as joint tenants with right of survivorship passes to the surviving joint owner automatically; it does not pass under the will.
Real estate that has a properly executed and recorded transfer-on-death (beneficiary) deed transfers to the named beneficiary at death, outside probate.

What a transfer-on-death deed does in Indiana

Indiana law recognizes mechanisms allowing a property owner to name a beneficiary who receives real estate at the owner’s death without probate (see Indiana property law and related provisions). A transfer-on-death or beneficiary deed must be properly executed and recorded while the owner is alive. If you execute and record a valid TOD (beneficiary) deed naming your daughter, the property typically passes directly to her at your death and will not need to be probated.

See Indiana property statutes for details about recording and validity: Indiana Code, Title 32 (Property) — review the provisions related to beneficiary deeds and real property transfers: https://iga.in.gov/legislative/laws/2024/ic/titles/032

What a POD designation does

POD (payable-on-death) or beneficiary designations on bank and brokerage accounts let the account owner name who receives the funds directly at death. Once you name a POD payee, the bank will generally pay the funds to that person upon presentation of a death certificate and required documentation. These transfers bypass probate and are controlled by the account’s beneficiary designation, not by your will.

Order of priority — what controls when instruments conflict

In most cases, an asset’s title or beneficiary designation controls. That means:

If an account or policy has a valid beneficiary named, that designation typically overrides the will as to that asset.
If real estate has a recorded TOD beneficiary deed or is owned jointly with rights of survivorship, those methods control the transfer of the land.
The will controls only assets that are part of your probate estate (assets with no other binding transfer mechanism).

Practical examples

Example A — Bank account and house:

You leave “everything” to your daughter in your will, but your checking account lists a POD beneficiary who is someone else. At your death the bank will pay that account to the named POD beneficiary; the will does not change that payoff.
Your house is titled solely in your name and you have not recorded a TOD deed. The house will typically be part of probate and pass according to your will (subject to estate administration). If you record a valid TOD deed naming your daughter, the house will transfer directly to her without probate.

Other important effects and issues

Creditors. Passing property by TOD or POD might bypass probate, but creditors can still have claims against the decedent’s estate. How those claims affect a particular asset can be complex.
Transfer requirements. A TOD deed must be properly executed and recorded during your lifetime to be effective. Similarly, banks and financial institutions require specific paperwork to add POD beneficiaries.
Mortgages and liens. Naming a beneficiary by TOD deed does not eliminate mortgages or liens; the mortgage remains attached to the property after transfer unless paid or refinanced.
Retirement and insurance accounts. Beneficiary designations on retirement plans and life insurance normally control distribution and will override a will’s directions for those accounts.
Version control. Make sure beneficiary forms and deeds reflect your current wishes. Conflicting beneficiary forms, outdated deeds, or joint accounts can produce unintended results.

What you should do next (step-by-step)

Inventory your assets. Make a list that shows how each item is titled and whether it has a named beneficiary (bank accounts, brokerage accounts, retirement plans, life insurance, vehicle titles, deeds).
Check beneficiary forms. Confirm who is listed on accounts and policies and update them if they don’t match your current wishes.
Decide whether you want probate. If you want to avoid probate for specific assets, consider POD or TOD instruments where available.
Record TOD deeds correctly. If you choose a beneficiary deed for real estate, have the deed prepared and recorded according to Indiana recording requirements while you’re alive.
Coordinate documents. Make sure your will, beneficiary designations, deeds, and any joint ownership arrangements reflect the same overall plan so they don’t conflict.
Consult counsel. For complex situations (large estates, creditor concerns, blended-family issues, tax questions), talk with an Indiana probate or estate planning attorney who can review your titles and documents and advise on the best tool for each asset.

For general statutory guidance on wills and probate in Indiana, see Indiana Code, Title 29 (Probate, Trusts, and Fiduciaries): https://iga.in.gov/legislative/laws/2024/ic/titles/029

Helpful hints — quick checklist to avoid surprises

Remember: beneficiary designations and title usually control over your will.
Use a TOD (beneficiary) deed for real property you want to pass outside probate; record it while you are alive.
Add POD or TOD beneficiaries for bank and investment accounts to transfer them outside probate.
Keep an up-to-date list of all accounts, deeds, and beneficiary designations and review them after major life events (marriage, divorce, births, deaths).
If you want the house to pass under your will, do not sign a TOD deed. If you want to avoid probate, sign and record the TOD deed correctly.
Updating a will does not automatically update beneficiary forms. Change both if your wishes change.
Record the deed and confirm with the financial institution that the POD designation is valid — institutions sometimes require their own forms.
Consider simple estate planning documents (durable power of attorney, health care directive) as part of a complete plan.
When in doubt, consult an Indiana attorney experienced with probate and estate planning to confirm state-specific formalities.

Disclaimer: This article explains general principles of Indiana law and is for informational purposes only. It is not legal advice, does not create an attorney–client relationship, and may not reflect recent changes in the law. For advice about your particular situation, please consult a licensed Indiana attorney.