Can You Change or Revoke a Transfer-on-Death Instrument in Illinois?

 Posted on October 21, 2026 in Estate Planning

You can change or revoke a transfer-on-death instrument (TODI) in Illinois during your lifetime, as long as you are mentally able to understand the decision and its effects. However, you must follow specific requirements to make the change valid. Mistakes can cause your property to pass to someone you no longer want to inherit it.

If you want to update a TODI in 2026, our Country Club Hills, IL real estate lawyer can help you make the changes properly.

What Is a Transfer-on-Death Instrument in Illinois?

A TODI is a recorded document naming who receives your real estate when you die. It lets the property pass without probate, the court process for handling a deceased person’s estate. Illinois authorizes these through the Real Property Transfer on Death Instrument Act. The law originally applied only to residential property but was expanded in 2022 to cover other types of real estate. The document transfers nothing during your lifetime. You keep full ownership. You can sell or mortgage the property, and the beneficiary has no ownership rights while you are alive.

Under 755 ILCS 27/45, a TODI must be signed by the owner, witnessed by two credible witnesses, and notarized. The owner and witnesses must acknowledge their signatures before a notary. The document must also be recorded in the county where the property is located before the owner's death. Beneficiaries take the property subject to existing debts tied to it, including mortgages, liens, and unpaid taxes.

How Do You Revoke a Transfer-on-Death Instrument in Illinois?

Illinois recognizes two ways to revoke a TODI. You can record a new TODI that replaces or conflicts with the original. You can also record a separate document that clearly revokes the earlier TODI. Both options must follow the same signing, witnessing, and notarization requirements as the original. The new document must be signed, witnessed, and notarized on a later date than the original TODI. It must also be recorded before your death in each county where the original was recorded.

Simply destroying the original document does not revoke it. You also cannot cancel it by changing your will or telling the beneficiary that you changed your mind.

Jointly owned property has additional rules. If all joint owners signed the TODI, all living joint owners must revoke it together. The last surviving joint owner can revoke it alone. An agent acting under a power of attorney cannot create or revoke a TODI for you.

Does Selling Your Illinois Property Cancel a Transfer-on-Death Instrument?

Selling the property during your lifetime usually prevents the TODI from transferring it when you die. For example, if you record a TODI naming your daughter as beneficiary but later sell the home, she will not inherit that property through the TODI. You no longer own it.

Refinancing works differently. You keep ownership, so the TODI remains in effect, and the beneficiary takes the property subject to the new loan.

Transferring the property into a trust also removes it from the TODI's reach. That applies if you complete a valid transfer and no longer own the property individually. There is one important exception involving unfinished sales. If you sign a contract to sell the property but die before the sale closes, the TODI is not revoked. The beneficiary receives the property subject to the sale contract.

A real estate attorney can review your ownership records and determine whether a recorded TODI still affects your property.

What Happens if a TODI Beneficiary Dies Before You in Illinois?

If a beneficiary dies before you, who gets the property depends on your TODI and your relationship to that person. Under Illinois law, if your child or another descendant dies before you, their descendants usually inherit their share.

If you named several beneficiaries, the surviving beneficiaries usually share the deceased person's portion. However, different rules apply if that person was your descendant and left children or other descendants.

If no one is eligible to inherit, the property passes through your estate and could require probate. You can avoid confusion by naming backup beneficiaries. An attorney can help you decide who should inherit and how the property will be divided.

When Should You Update a Transfer-on-Death Instrument in Illinois?

Review your TODI when major changes affect your family or property, including:

• A beneficiary dies or develops serious health problems

• You divorce, remarry, or welcome a child or grandchild

• You create a trust or update your estate plan

• You refinance or add someone to your deed

• Your relationship with a beneficiary changes

If a beneficiary receives government benefits, inheriting property could affect their eligibility. A trust might be a better option. Your TODI only covers the property named in it.

Schedule a Free Consultation With Our Calumet City, IL Attorney for Transfer-on-Death Instruments

Attorney Constance R. Sherrod walks clients through each step of buying, selling, and transferring property. She explains what each document actually does rather than handing over paperwork. She also works with seniors and families who want to plan how their property will pass to loved ones.

If you need to change or revoke a TODI, our Country Club Hills, IL real estate lawyer can review your existing document and help ensure your wishes are properly recorded. Contact The Sherrod Law Firm, Ltd. at 312-321-6910 today.