What is a Transfer on Death Deed?
A Transfer on Death Deed (sometimes called a TODD) is a simple way to transfer real estate to someone else after you die. With a properly recorded Transfer on Death Deed, no probate is needed to transfer the real property. If you don’t have a will or a Transfer on Death Deed, your real estate must go through the probate court and your property will pass to your heirs according to Texas law. Probate can be lengthy and expensive, with attorney fees and court costs paid from your estate. With a Transfer on Death Deed, you can avoid probate and decide in advance who should inherit your real property interest.
How does a Transfer on Death Deed work?
A Transfer on Death Deed lets you keep all ownership rights to the property during your lifetime, so you can sell it or use is as collateral on a loan. When you die, your property interest passes to the person you named in the Transfer on Death Deed (the “beneficiary”) without any probate action. You can name more than one beneficiary, and you can change the beneficiary at any time by cancelling the Transfer on Death Deed or making a new one. You do not need to tell the beneficiary of the Transfer on Death Deed about any changes that you make to it.
If you are a joint owner, you can transfer your interest to another joint owner (your spouse, for example), or to non-owners (for example, your grandchildren) by naming them as Transfer on Death Deed beneficiaries. After you die, the beneficiary should file an Affidavit of Death in the deed records to ensure clear title.
If you’re interested in drafting a Transfer on Death Deed, contact Brandi Wolfe at Brandi Wolfe Law, PLLC.