For many Texas families, the home is the most valuable thing they own. It is also often the asset that sends a family into probate court after a loved one passes. One simple tool, the Transfer on Death Deed (TODD), can help your home pass directly to the people you choose.
What Is a Transfer on Death Deed?
A Transfer on Death Deed is a document that names one or more beneficiaries to receive your real estate when you die. Texas has allowed these deeds since 2015 under the Texas Estates Code.
While you are alive, nothing changes:
- You keep full ownership and control of your property.
- You can sell, refinance, or mortgage it without the beneficiary’s permission.
- You can change or revoke the deed at any time.
- The beneficiary has no rights to the property until your death.
How Does It Work?
To be valid, the deed must be signed, notarized, and recorded in the county property records before your death. A deed that is signed but never recorded will not work. After your death, the beneficiary generally files an affidavit of death and related documents, and the property passes to them without a full probate administration.
Benefits of a Transfer on Death Deed
- Can avoid probate for the home. This saves your family time and court costs.
- Affordable. It is typically much less expensive than setting up a trust.
- Flexible. You stay in complete control during your lifetime.
- Private and simple. It is a straightforward process for your loved ones.
Things to Keep in Mind
A TODD is a useful tool, but it is not a complete estate plan.
- It covers only real estate. Bank accounts, vehicles, and other assets need their own planning.
- Debts and liens remain. The beneficiary takes the property subject to any mortgage or lien.
- Plan for “what ifs.” What happens if a beneficiary dies before you? A well-drafted deed names alternate beneficiaries.
- Community property matters. Married couples in Texas should plan together, since each spouse generally owns a half interest in community property.
- Medicaid and other benefits. If long-term care planning is a concern, get advice before relying on a TODD.
Is a Transfer on Death Deed Right for You?
For many homeowners, a TODD combined with a will and powers of attorney creates a simple, cost-effective plan. For others, a trust or another approach may work better. The right choice depends on your family, your property, and your goals.
The Mattis Law Firm PLLC helps Houston-area homeowners prepare and record Transfer on Death Deeds as part of a complete estate plan. Schedule a consultation or call (713) 936-9632.
This article is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Please consult an attorney about your specific situation.
