When it comes to estate planning, most people have the same goal: to make things as stress-free and straightforward as possible for the people they love. That’s exactly what a Transfer on Death Deed (TODD) can help you do, especially if you own real estate in Texas.
At Massingill, our superpower is making the complex simple, and TODDs are a perfect example of that. If you’re considering one of these deeds or wondering whether it’s right for your estate plan, you’re in the right place.
Probate Can Be a Pain
Nobody enjoys talking about probate. It’s time-consuming, expensive, and stressful for the people left behind. In Texas, probate can drag on for months or even years, especially when property is involved. The last thing most people want is for their loved ones to be tied up in court when they should be focusing on healing.
In addition to the time it can take to complete the probate process, legal fees and court costs can quickly reduce the value of an estate, especially if disputes arise. This is exactly why many Texans are turning to alternative planning tools.
Meet the Transfer on Death Deed in Texas
A Transfer on Death Deed is a legal document that allows a person called the “grantor” to name a beneficiary who will automatically inherit real estate upon the grantor’s death, without the need for probate.
Unlike a will, the TODD allows real property to skip court entirely. Unlike joint tenancy, it doesn’t give anyone rights to your home while you’re alive. That means peace of mind and complete control until the very end.
How a TODD Works
Setting up a TODD is simpler than you think, especially with the right legal guidance. The Texas Estates Code governs how TODDs work and provides a detailed guide to establishing one. However, the basic process looks like this:
- Draft the deed using the correct statutory language and legal format;
- Sign it in front of a notary to make it official;
- Record the deed with the county clerk in the county where the property is located, before the grantor passes away; and
- If circumstances change, you can revoke or replace the TODD at any time by filing a new one or a revocation form.
Each of these steps plays a crucial role in ensuring the deed is legally valid when it matters most. Missing a step, such as forgetting to record the deed, can invalidate the entire document.
Common Misunderstandings About TODDs
Despite how straightforward TODDs can be, a few myths still confuse many people. Let’s clear those up.
Some assume that adding someone to the deed using a TODD immediately gives that person rights to the property. It doesn’t. A TODD is fully revocable and doesn’t give the beneficiary any control until the grantor dies.
Others think a TODD covers everything in the estate. It doesn’t—it only applies to real property. You’ll still need a comprehensive estate plan to address personal property, vehicles, bank accounts, and guardianships for minor children.
Here are a few things a TODD can’t do:
- It won’t avoid Medicaid estate recovery if the state is owed for long-term care expenses;
- It doesn’t help with estate taxes or provide asset protection; and
- It won’t work on out-of-state property since other states have their own laws and rules.
So while a TODD is a fantastic tool for passing real estate, it shouldn’t replace a full estate plan if your situation has multiple layers. At Massingill, we can help you understand and execute on the best ways to protect your assets and your family.
Is a Transfer on Death Deed Right for You?
The answer depends on your goals, but for many people, it is a clear yes. It’s a simple, cost-effective way to take one of your biggest assets off the probate checklist.
A TODD might be a good fit if you:
- Own real estate in Texas under your name only (not in a trust or business),
- Want a specific person to inherit that property after your death,
- Want to keep control while you’re alive and not give ownership early, and
- Wish to avoid probate for that asset and make things easier for your family.
If one or more of these apply to you, it’s worth a conversation with an estate planning attorney committed to ensuring your last wishes are fulfilled.
Take the Next Step
Still wondering, what is a transfer on death deed, and do you really need one? If so, you don’t have to figure it out alone. The team at Massingill is here to help you look at the full picture of your estate and decide what tools make the most sense.
Whether your estate feels simple or complex, you deserve a plan that gives your loved ones clarity, not chaos. A Transfer on Death Deed in Texas could be a smart piece of that puzzle, especially if you own property.
Let’s make your plan simple, thorough, and future-proof.
Schedule a consultation with Massingill today.
Joshua Massingill
Joshua Massingill is an attorney practicing in Austin, Texas. He serves on the Texas State Bar’s Law Practice Management Committee, the Leander Educational Excellence Foundation (LEEF) Board of Directors, and the Success-Werx Board of Advisors. He mentors young entrepreneurs in Leander ISD’s INCubatorEDU program and is active in his church.
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