Texas Transfer on Death Deed

A Transfer on Death Deed (also known as a “TOD Deed”) is a special kind of deed that allows the current owner to transfer Texas real estate to a new owner (called the beneficiary) upon the death of the current owner.

A Transfer on Death Deed allows the current owner to retain ownership and control of the real estate for as long as they live. Unless the TOD Deed is revoked or the current owner sells the property, the property will pass to the beneficiary(ies) listed the TOD Deed upon the current owner’s passing. The beneficiary can simply file an Affidavit of Death to complete the transfer rather than an expensive probate process.

Step 1. You'll need to submit some basic information about the property and the beneficiary via the secure Transfer on Death Deed order form. This should take you no more than 5 minutes.

Step 2: We will prepare the TOD Deed and email to you along with signing instructions. This is typically completed the same day that you submit your order, but could take longer if we have to locate the legal description of the property.

Step 3: Upon receiving the notarized TOD Deed back from you, we will forward the to the county clerk for recording. If the county where the property is located allows for e-recording the recording process can take as little as 1 day.  If the property is located in a small county that does not allow e-recording, we will need your original notarized signature and will have to mail the original TOD Deed (not a copy) which adds about 10 days to the total projected timeframe.

We charge a flat fee of $200 to prepare and file/record the TOD Deed. You will need to sign the TOD in front of a notary (who may charge you an additional $15-$30 to notarize your signature). Use this link to find a notary near you.

The Transfer on Death Deed is only effective if the property to-be-transfer is owned by a living individual. You cannot use a TOD Deed to transfer an interest in real estate that is owned by an LLC.

Yes. A TOD Deed can be revoked at any time by filing a simple revocation with the county clerk. If the property is sold before death, the TOD Deed is null and void.

A TOD Deed (like a will or trust) does not trigger a mortgage “due on sale” clause. Once the beneficiary receives the property (upon the death of the owner), the mortgage will need to be paid monthly or else the mortgage company can foreclose their lien (just like if the owner fails to pay the mortgage).

If you own real estate and pass away without a TOD Deed, an attorney will need to be hired to probate the decedent’s estate. The kind of probate process required will depend on whether or not you had a valid Last Will & Testament.

1. If you have a Last Will and Testament, the Will is filed with the probate court and after a hearing, the Will is admitted to probate. Probating a Will can takes months, costs thousands of dollars, and requires a substantial amount of effort.

2. If you do NOT have a Last Will and Testament, one of the decedent’s heirs will have to hire an attorney to either prepare and file an Affidavit of Heirship OR administer the decedent’s estate. The administration process takes months, costs thousands of dollars, and requires a substantial amount of effort.

Yes. As of September 1, 2015, Texas property owners can utilize Transfer on Death Deeds to transfer property to their beneficiaries.

Yes. The TOD Deed is not effective unless and until you pass away. At any time, the current owner can revoke or cancel a TOD Deed. As such, the current owner can sell or borrow against a property that is subject to a TOD Deed. Selling a property has the same effect as a revocation of the TOD Deed.

Yes. The current owner of Texas real estate can name multiple beneficiaries in a Transfer on Death Deed.

A beneficiary must outlive the grantor by five days (or specifically 120 hours) for the transfer to be effective. You are allowed to name an alternate beneficiary so that if the primary beneficiary does not outlive the property owner, the alternate beneficiary would receive the property.

If there are no living beneficiaries upon death, the Transfer on Death Deed is essentially invalid and the property will pass via the probate process (according to the property owner’s will) or, if there is no will, the property will pass to the property owner’s heir(s).

A TOD Deed must be filed with the county clerk’s office in the county where the property is located BEFORE the current owner dies.

As of September 2019, the District of Columbia and the following states allow some form of TOD deed: Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Illinois, Indiana, Kansas, Maine, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, TEXAS, Utah, Virginia, Washington, West Virginia, Wisconsin and Wyoming. Please note, we only handle Texas Transfer on Death Deeds.

Yes, a TOD Deed is superior to and supersedes a Will. In other words, if your Will states that the property should go to your child, but the TOD Deed states that the property should go to your spouse, your spouse will receive your interest in the property upon your death (unless you revoke the TOD Deed or get a divorce).

If you name your spouse as a TOD beneficiary and subsequently get a divorce, the divorce will invalidate your spouse as a beneficiary.

Most people that have an estate plan will utilize both a Will and the TOD Deed. A TOD Deed and a Will are separate documents and accomplish entirely different goals. A TOD Deed only affects the real estate listed therein and supersedes a Will which allows for the real estate to pass quickly and easily (outside of the probate process).

Texas has two categories of property (real and personal). A Transfer on Death Deed can be used to transfer real property upon one’s death. Real property is synonymous with real estate. A TOD Deed can be used to transfer your primary home, a rent house you own, mineral rights, etc. Personal property (cars, furniture, etc.) cannot be transferred with a Transfer on Death Deed.

Yes. Joint tenants owning Texas property with rights of survivorship can utilize the TOD Deed. Although owning property as a Joint Tenant with Rights of Survivorship is rare, the Texas Estates Code 114.103(b)states: If a transferor is a joint owner with right of survivorship who is survived by one or more other joint owners, the real property that is the subject of the transfer on death deed belongs to the surviving joint owner or owners. If a transferor is a joint owner with right of survivorship who is the last surviving joint owner, the transfer on death deed is effective. How can I tell if I own a property as a Joint Tenant with Rights of Survivorship? If you look at the vesting deed (the deed from when you originally acquired the property), it will list the grantees and after the grantees’ names it will say something like “as joint tenants with rights of survivorship”.

September 1, 2015

A TOD beneficiary must outlive the current owner by 120 hours.

A designated beneficiary may disclaim all or part of the designated beneficiary's interest as provided by the Texas Estates Code Section 122.002 .

Yes. In Texas, you can now use a Transfer on Death Deed to transfer your house to a new owner to be effective on the date of your death.

While the mortgage is not the responsibility of the beneficiary, failure to pay the mortgage will result in foreclosure of the lien. In other words, if the property has a lien on it, the lien will remain after the transfer.