Skip Probate on Your Texas Home
Probate takes time, costs money, and puts your estate’s business into public records. For Texas homeowners who want their property to pass directly to a specific person at death — without the hassle — a transfer on death deed is one of the simplest tools available.
Texas adopted this relatively recently. The Real Property Transfer on Death Act took effect September 1, 2015, giving Texas property owners a straightforward way to transfer real property outside of probate. It doesn’t replace a will or an estate plan. But for the specific goal of getting your home to the right person without a court process, it does the job.
Table of Contents
▼How a Transfer on Death Deed Works
The concept is straightforward. You sign a deed naming a beneficiary. You record it with the county clerk. Nothing happens right now. You keep full ownership and control of the property. You can sell it, mortgage it, lease it, or do anything else you could normally do.
When you die, the property passes to the named beneficiary. They record an affidavit of death with the county clerk, along with a certified copy of your death certificate. That’s it. No probate filing, no court appearance, no waiting months for a judge to approve the transfer.
The beneficiary takes ownership subject to any existing liens — mortgage, home equity loan, property tax liens. The TODD transfers ownership of the property, not freedom from debt.
What You Keep During Your Lifetime
Everything. A TODD does not affect your rights as the property owner while you’re alive.
- You still own the property outright
- You can sell it without the beneficiary’s permission
- You can mortgage or refinance it
- You can lease it
- You can change or revoke the TODD at any time
- You keep all income from the property
- The beneficiary has no rights to the property while you’re alive
This is a critical distinction from other transfer methods. If you deed the property to someone while you’re alive — even if you keep living there — you’ve given up ownership. With a TODD, you’ve given up nothing. The beneficiary’s interest doesn’t vest until you die.
How to Set One Up
A transfer on death deed in Texas must meet specific requirements. This isn’t a document you eyeball based on a template you found online. Have an attorney prepare it.
The deed must:
- Be in writing
- Contain a legal description of the property
- Name the beneficiary or beneficiaries
- State that the transfer occurs at the owner’s death
- Be signed by the owner (grantor) before a notary
- Be recorded with the county clerk in the county where the property is located before the owner’s death
That last point is non-negotiable. If the TODD isn’t recorded before you die, it’s worthless. Your family finds it in a drawer after the funeral, and it does nothing. The property goes through your will — or intestate succession if you don’t have one — and into probate.
Record it now. It costs a small recording fee at the county clerk’s office.
Sell your home for just 1% commission.
Revoking or Changing a TODD
Changed your mind? Want to name a different beneficiary? No problem.
You can revoke a TODD at any time during your lifetime by recording a revocation instrument with the county clerk. Or you can record a new TODD for the same property — the most recently recorded instrument controls.
You can also effectively revoke it by selling the property. If you sell the house before you die, the TODD has nothing to transfer. The beneficiary gets nothing because you no longer own the property.
One thing you cannot do: revoke a TODD in your will. The deed operates outside of the probate process, and a will cannot override a recorded TODD. If you want to change the beneficiary, you need to record a new TODD or a revocation — not just update your will.
Advantages Over a Will
For real property specifically, a TODD has several practical advantages over relying on a will:
No probate. The property transfers directly to the beneficiary. No court filing, no executor appointment, no months of waiting. In Texas, probate can take 6-12 months or longer if contested. A TODD bypasses all of that.
Lower cost. Probate involves attorney fees, court costs, executor fees, and other expenses. A TODD costs a modest attorney fee to prepare and a small recording fee. That’s it.
Privacy. Probate is public. Anyone can look up your estate filings, see what you owned, and see who received what. A TODD transfer happens through recorded documents at the county clerk’s office — which are also public records — but there’s no court proceeding and no inventory of your entire estate exposed to scrutiny.
Speed. The beneficiary can record the affidavit and death certificate shortly after your death. They become the owner of record without waiting for a court to approve anything.
Limitations and Things to Watch For
A TODD is a useful tool, not a complete estate plan. Keep these in mind:
It only covers the specific property named. If you own multiple properties, you need a separate TODD for each one. And it only covers real property — not bank accounts, investments, vehicles, or personal property.
It doesn’t address what happens if the beneficiary dies first. If your named beneficiary predeceases you and you haven’t updated the TODD, the transfer may lapse depending on the terms of the deed. Some TODDs name alternate beneficiaries. Make sure yours addresses this.
Multiple beneficiaries can create complications. You can name more than one beneficiary, and they’ll own the property jointly. If they can’t agree on what to do with it — one wants to sell, the other wants to keep it — you’ve created a dispute your TODD won’t resolve.
Creditor and Medicaid issues. A TODD may not protect the property from your creditors after death. Medicaid estate recovery claims, for example, can potentially reach property transferred via TODD. This is a complex area — talk to an attorney who understands both estate planning and Medicaid rules.
Tax implications. The beneficiary receives the property with a stepped-up tax basis as of the date of death, which is favorable for capital gains purposes. But there may be other tax considerations depending on the property’s homestead status and the beneficiary’s plans. Get tax advice specific to your situation.
It doesn’t replace an estate plan. A TODD handles one property. An estate plan handles everything — other assets, minor children, healthcare directives, powers of attorney. If all you have is a house and you want it to go to one specific person, a TODD might be all you need. If your situation is more complex, you need more than a TODD.
Sell your home for just 1% commission.
How It Relates to Selling Your Home
If you have a TODD recorded on your property and you decide to sell, the TODD doesn’t complicate the sale. You sell the property using a standard general warranty deed at closing, and the TODD becomes irrelevant — there’s nothing left for it to transfer.
However, the title company may require you to record a revocation of the TODD as part of the closing process to keep the chain of title clean. This is a minor administrative step, not a hurdle.
If you’re selling your home in the Houston area, Creekstone Real Estate provides full-service listing at 1%. Whether you have a TODD, a trust, or a straightforward ownership situation, the listing process is the same. Learn how it works.
Bottom Line
A transfer on death deed is one of the simplest ways to get your Texas home to the right person without probate. It’s revocable, it doesn’t affect your rights during your lifetime, and it costs almost nothing to set up.
But it’s one tool, not the whole toolbox. If your estate is straightforward — one house, one clear beneficiary — a TODD might be all you need. If it’s more complicated, use the TODD as part of a broader estate plan that an attorney puts together for you.
For questions about TODDs or any other type of deed in Texas, talk to a real estate attorney. They can make sure the deed is drafted correctly, recorded properly, and aligned with your overall plan.
Related Guides
Frequently Asked Questions
What is a transfer on death deed in Texas?
A transfer on death deed (TODD) is a legal document that allows a property owner to name a beneficiary who will automatically receive the property when the owner dies — without going through probate. The owner retains full control of the property during their lifetime.
Can I change or revoke a transfer on death deed in Texas?
Yes. A TODD is revocable at any time during the owner's lifetime. You can revoke it by recording a revocation instrument with the county clerk, or by recording a new TODD that replaces the old one. The last recorded instrument controls.
Does a transfer on death deed affect my mortgage?
No. The TODD doesn't affect your mortgage during your lifetime. At death, the property transfers to the beneficiary subject to any existing liens, including the mortgage. The beneficiary inherits the property along with any debt secured against it.
When did Texas allow transfer on death deeds?
Texas enacted the Real Property Transfer on Death Act in 2015, effective September 1, 2015. It allows Texas property owners to use TODDs to transfer residential real property to named beneficiaries outside of probate.
Does a transfer on death deed override a will?
Yes. A properly executed and recorded TODD takes precedence over a will for the specific property named in the deed. The property passes directly to the TODD beneficiary regardless of what the will says. This is similar to how a beneficiary designation on a life insurance policy works.
