A transfer on death deed lets you pass your home directly to a named beneficiary when you die, without probate and without a trust. It is one of the simplest probate-avoidance tools available to Texas homeowners. Here is how it works and when it is the right choice.
How a Transfer on Death Deed Works
Created by Texas Estates Code Chapter 114, a transfer on death deed names who receives your real property at your death. While you are alive nothing changes: you keep full ownership and control, and you can sell, mortgage, or revoke the deed at any time. The deed must be signed, notarized, and recorded in the county property records before your death to be effective.
The Two-Year Creditor Window
Texas law lets a personal representative or creditor reach a property transferred by a transfer on death deed for up to two years after death, if the estate cannot cover its debts. Because of this window, some title companies are cautious about insuring the property until the period passes. It is worth understanding before you choose this tool.
When to Use One
A transfer on death deed is well suited to a single home passing to a single beneficiary, when you want a clean statutory form with clear recording and revocation rules. If Medicaid planning is a concern, or you want a family member to be able to sign under a power of attorney, a Lady Bird deed may fit better. For larger or more complex estates, a revocable living trust may be the better path.
Frequently Asked Questions
Does a transfer on death deed avoid probate in Texas?
Yes. The property passes directly to your named beneficiary at death, as long as the deed was signed, notarized, and recorded before death.
Can I change or cancel a transfer on death deed?
Yes. It is revocable at any time during your life. You can revoke it or record a new one.
How is it different from a Lady Bird deed?
Both avoid probate. A transfer on death deed is statutory but carries a two-year creditor window. A Lady Bird deed has no statutory clawback and can be signed under a power of attorney.
Is a Transfer on Death Deed Right for You?
Let us help you compare your options. Call 713-955-6182 or contact The De Leon Law Firm.