Transfer Upon Death Deed

In Texas, a Transfer on Death Deed (TODD) is a legal document that allows a property owner to pass real estate to a beneficiary upon their death without going through probate. This type of deed is governed by the Texas Estates Code, Chapter 114, and is commonly used as an estate planning tool.

Key Features of a Transfer on Death Deed (TODD) in Texas:

1. Avoids Probate – The property automatically transfers to the named beneficiary upon the owner’s death, bypassing the probate process.
2. Retains Owner’s Control – The owner keeps full rights to the property during their lifetime, including the ability to sell, mortgage, or revoke the deed at any time.
3. Must Be Recorded – To be valid, the deed must be signed, notarized, and recorded with the county clerk in the county where the property is located before the owner’s death.
4. No Immediate Interest to Beneficiary – The named beneficiary has no rights to the property until the owner passes away.
5. Revocable – The owner can revoke or change the deed at any time as long as they are competent.
6. Supersedes a Will – If a will contradicts the TODD, the TODD takes precedence in property transfer.

Requirements for a Valid TODD in Texas:

• The deed must include the legal description of the property.
• It must clearly state that the transfer is to occur upon the owner’s death.
• The document must be signed, notarized, and recorded with the county clerk before the owner's death.

Limitations of a TODD:

• If the beneficiary dies before the owner and no alternative beneficiary is named, the property may go through probate.
• It does not provide asset protection from creditors during the owner’s lifetime.
• The beneficiary inherits the property subject to any existing liens or mortgages.

A Transfer on Death Deed is a simple, low-cost estate planning tool for Texans who want to ensure their real estate passes smoothly to their heirs without court involvement. However, consulting a real estate attorney or estate planner is recommended to ensure it aligns with an individual’s broader estate planning goals.