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In this article, you’ll learn how Wisconsin homeowners can transfer their home outside of probate using a Transfer on Death (TOD) deed, how it compares to the Lady Bird Deed you may have read about online, how it affects Medicaid planning, and why a TOD deed is only one piece of a complete estate plan.
If you’ve researched estate planning online, you’ve probably come across something called a Lady Bird Deed. It’s often described as a simple way to transfer your home at death while avoiding probate and protecting it from Medicaid estate recovery.
The problem? Lady Bird Deeds are not recognized in Wisconsin. So, what is the alternative here?
In Wisconsin, the comparable tool is called a Transfer on Death (TOD) deed. And when used correctly, it can be an effective way to transfer your home to your chosen beneficiaries without going through probate.
But like any single document, it has limitations you need to understand before relying on it
What a Transfer on Death (TOD) Deed Does in Wisconsin
A Wisconsin Transfer on Death deed allows you to name one or more beneficiaries who will automatically receive your home when you die.
While you’re alive, you retain complete ownership and control. You can:
- Sell the home
- Refinance it
- Take out a mortgage
- Change or revoke the TOD designation
The beneficiary has no ownership interest during your lifetime. The transfer only takes effect at your death.
When you pass away, your beneficiary records a Termination of Decedent’s Interest (HT-110) with the Register of Deeds, and the property transfers without probate.
For many families, avoiding probate is a meaningful benefit. While Wisconsin probate is often more efficient than in other states, it still requires court filings, time, and administrative responsibilities.
A TOD deed allows your home to pass directly to your heirs.
How TOD Deeds Relate to Medicaid in Wisconsin
One of the main reasons people search for Lady Bird Deeds is Medicaid planning.
In Wisconsin, Medicaid (Medical Assistance) may seek reimbursement for certain long-term care expenses after death through estate recovery. In most state recovery only applies to assets that pass through probate. But under Wisconsin’s expanded estate recovery program, a TOD deed unfortunately is recoverable if you received Medicaid benefits while you were alive.
Furthermore, since you retain ownership while you are alive, the house may still be considered an available asset for eligibility purposes.
In other words, a TOD deed can be part of Medicaid planning, but it is not a complete Medicaid strategy.
The Advantages of a Wisconsin TOD Deed
When used in the right situation, a Wisconsin Transfer on Death deed can be a practical and efficient planning tool. Its primary benefit is that it allows your home to pass directly to your chosen beneficiary without going through probate. Even though Wisconsin probate is generally more streamlined than in some states, it still requires court filings, deadlines, and administrative steps that can feel burdensome to loved ones. A TOD deed simplifies that transition.
Another advantage is flexibility. While you are alive, you retain complete control of your property. You can sell it, refinance it, take out a mortgage, or revoke the TOD designation entirely. Your beneficiary has no ownership rights during your lifetime, which means you are not giving up control in order to plan ahead. That balance of control and simplicity makes the TOD deed appealing for many homeowners.
There can also be tax benefits. When your beneficiary inherits the property at your death, they generally receive what is called a step-up in basis. In simple terms, the home’s value for tax purposes resets to its fair market value at the time of your death. If your beneficiary later decides to sell the home, this adjustment may significantly reduce capital gains taxes.
The Limitations You Should Understand
While a TOD deed works well for transferring real estate, it does not address the rest of your financial assets. Bank accounts, investment accounts, vehicles, and personal belongings will still require their own planning. If those assets are not properly titled or coordinated, your family may still face probate even though the home transfers smoothly.
A TOD deed also offers no protection during your lifetime. If you become incapacitated due to illness, dementia, or an accident, the deed provides no authority for someone to manage your finances or make decisions on your behalf. Without durable powers of attorney in place, your loved ones may need to seek court involvement to help you.
Why Comprehensive Planning Matters
A Transfer on Death deed can be an effective tool in Wisconsin, but it is only one piece of a larger plan. Real protection for your family requires coordination. That may include a will or trust to address other assets, powers of attorney to protect you during incapacity, healthcare directives to express your wishes, and long-term care planning strategies tailored to your circumstances.
Avoiding probate for your home is valuable. Ensuring your loved ones have clarity, authority, and protection in every scenario is even more important.
When planning is approached thoughtfully and comprehensively, your family is not left guessing. They have guidance, structure, and support during one of the most difficult times in their lives.
How We Help Wisconsin Families Choose the Right Planning Strategy
Estate planning tools like Transfer on Death deeds, wills, and trusts are not interchangeable, and what works well for one family may create unintended consequences for another.
That’s why we begin with education.
When you come to Anchor Law, we don’t start by drafting documents. We start by understanding you. We look at your home, your other assets, your family dynamics, and your long-term care concerns. Then we explain what would actually happen under Wisconsin law if you became incapacitated or passed away today.
Want to better understand how to protect your family and your legacy? Register for one of our upcoming workshops to learn more.
https://myanchorlaw.submitrequests.com/workshop-a
This article is a service of Attorney John F. Koenig, Anchor Law, Life and Legacy Planning, LLC, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a comprehensive Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® Firms, a source believed to provide accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.