Texas Transfer on Death Deeds
On September 1, 2015, Texas enacted legislation that allows residents to execute a Transfer on Death Deed (TOD Deed). The TOD Deed allows real estate owners in the State of Texas to transfer property to their heirs or other beneficiaries outside of the probate process.
What the Transfer on Death Deed DoesThe TOD Deed allows a real property owner to choose who will inherit his or her real property upon death, without the property having to go through a probate process to transfer title.
Requirements for the Transfer on Death DeedThe deed must meet the following requirements: (i) must be in writing; (ii) contain a legal description of the property; (iii) inlcude the name and address of the designated beneficiaries (primary and contingent); (iv) be signed and notarized by the property owner; (v) contain special language that the interest will not vest in the beneficiary until the grant's deed; and (vi) be recorded in the deed records of the relevant county clerk's office.
Benefits to Using the Transfer on Death DeedA great benefit to using a TOD Deed is it is revocable during the grantor's lifetime. So the owner can change beneficiaries or completely revoke the deed. It also a great solution for persons that want to avoid probate and the only assets is a home or real property.