Property transferred by TOD will receive the same treatment as real property passing through probate; although it will avoid probate, it will be included in the grantor's estate for federal tax purposes. For most estates, there should be no federal estate tax consequences, due to the unified credit amount for 2015 (currently $5.43 million per person). Additionally, the beneficiary named in the TOD should get the "stepped-up basis" (date of death value) in the real property, a significant advantage for income tax purposes if the TOD beneficiary desires to sell the inherited real property.