For those States that handle titled property like this (not all States provide this; I think ours got it with the 2007 legislative session), it's no different than passing through inheritance. It's a legal construct for titled/deeded property. It's the same concept as your IRA account can have a beneficiary, bypassing a will, a trust, and probate. Payable on Death and Transfer on Death are alternative ways to assign assets upon the death of the original owner.

Once it is his, he can do anything he wants with it.