Transfer on Death Deed DC — How to Protect Your Parent's Home From Medicaid Recovery
What a Transfer on Death Deed Does in the District of Columbia
A Transfer on Death (TOD) deed lets a property owner name a beneficiary who automatically inherits the home when the owner dies — without going through probate. The owner keeps full control while alive: they can sell, refinance, or revoke the deed at any time.
DC authorized TOD deeds under D.C. Code §§ 19-604.01 through 19-604.19. The deed is revocable, requires no transfer of ownership during the grantor's lifetime, and does not give the beneficiary any current interest in the property.
This matters enormously for families navigating Medicaid long-term care in the District.
Why This Matters for Medicaid Estate Recovery
The District of Columbia is federally mandated to recover Medicaid payments from deceased beneficiaries who received EPD Waiver or skilled nursing facility services at age 55 or older. But DC's estate recovery program is limited to assets that pass through probate.
That's the critical detail. A TOD deed transfers the home outside probate — by operation of law, directly to the named beneficiary. Since DC's recovery authority under the Municipal Regulations only reaches probate assets, a properly recorded TOD deed removes the family home from the recovery pool entirely.
Compare this to the alternatives. An irrevocable trust can achieve the same result but costs $2,000 to $5,000 in attorney fees. A TOD deed costs only the recording fee at the DC Recorder of Deeds.
How to File a TOD Deed in DC
The process involves four steps:
Complete the deed form. Use DC's official Revocable Transfer-on-Death Deed form (ROD 39) from the Office of Tax and Revenue. The deed must include the property's square, suffix, and lot number — not just the street address. These identifiers appear on the current deed or the DC property tax assessment.
Sign before a notary. The grantor must sign in the presence of a notary public. No witnesses are required beyond the notary for the TOD deed itself, though the notary acknowledgment block must be properly completed.
Record with the Recorder of Deeds. File the executed deed at the DC Recorder of Deeds office on Capitol Hill or through their online submission system. Recording must happen during the grantor's lifetime — an unrecorded TOD deed has no legal effect.
Retain a copy. Keep the original recording receipt and a copy of the recorded deed with the family's essential documents.
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Common Questions About DC TOD Deeds and Medicaid
Does recording a TOD deed trigger Medicaid's five-year lookback penalty?
No. Because the owner retains full control and the transfer only happens at death, there is no gift or uncompensated transfer during the owner's lifetime. The five-year lookback (which reviews asset transfers made before the Medicaid application) does not apply to TOD deeds.
Can a TOD deed be revoked?
Yes. The grantor can revoke a TOD deed at any time by recording a revocation instrument with the Recorder of Deeds. They can also execute a new TOD deed naming a different beneficiary, which automatically supersedes the previous one.
What if the property has an existing mortgage?
A TOD deed does not affect any existing mortgage or lien. The beneficiary inherits the property subject to any outstanding encumbrances. If the parent has a reverse mortgage, the full balance becomes due at death regardless of the TOD deed.
When a TOD Deed Is Not Enough
A TOD deed protects the home from probate-based estate recovery, but it doesn't address other Medicaid planning needs. If your parent is approaching a hospital discharge and may need long-term home care through the EPD Waiver, you also need to understand the $4,000 countable asset limit, the $2,982 monthly income threshold, and the Medically Needy spend-down pathway.
The District of Columbia Hospital-to-Home Transition Toolkit covers the complete Medicaid eligibility process alongside TOD deed instructions, POA templates, and the interRAI assessment prep guide — everything needed to protect your parent's home while securing the care they need.
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