It remains revocable and does not make a present gift
A Washington TOD deed is revocable even if an instrument says otherwise. It is effective without notice, delivery, beneficiary acceptance, or consideration during the transferor’s life (Washington Uniform Real Property Transfer on Death Act).
Most importantly for Medicaid-planning discussions, the statute says a TOD deed does not affect the transferor’s rights, the right to transfer or encumber, creditors’ rights, public-assistance eligibility, or create a legal or equitable interest for the designated beneficiary during the transferor’s life (Washington Uniform Real Property Transfer on Death Act). That language does not turn the deed into a tested Medicaid shelter; it describes its effect while the owner lives.
Death transfer does not erase liens or recovery
At death, the property transfers to the surviving designated beneficiary under the deed, subject to the statute’s rules. The beneficiary takes subject to conveyances, liens, mortgages, and other interests affecting the property at death, including liens recorded within 24 months after death under the cited Washington Medicaid-recovery laws (Washington Uniform Real Property Transfer on Death Act).
Washington’s recovery statute seeks recovery from an estate and nonprobate assets for specified assistance received at age 55 or older, and permits enforcement against a decedent’s life-estate or joint-tenancy interest. A TOD deed can avoid ordinary probate without guaranteeing that property is outside Washington Medicaid recovery (RCW 43.20B.080).
Deed planning still needs a full review
The Medicaid transfer rule supplies a date rule for real property: the transfer date is the day the grantor signs a recorded deed, or the day a signed deed is delivered to the grantee. A TOD deed has its own statutory nonpresent-transfer effect, so its Medicaid treatment should not be assumed from a conventional life-estate or outright deed (WAC 182-513-1363; Washington Uniform Real Property Transfer on Death Act).
A Washington real-estate and elder-law attorney should review title, community-property facts, beneficiary designations, creditor issues, transfer rules, taxes, and recovery before a TOD deed is signed or relied upon.
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