Transfer on Death Deed in Texas: How It Works and What to Know
A transfer on death deed is one of the simplest ways to leave a house to someone in Texas without sending it through probate. It costs little to prepare, the owner keeps full control while alive, and the house passes to the person named in the deed when the owner dies. It also has limits that catch families off guard, especially around mortgages, creditors and what happens when the person named dies first. This guide explains how a transfer on death deed works under Texas law, what makes one valid, how to change or cancel it, and what the beneficiary has to do after the owner passes away. What Is a Transfer on Death Deed? A transfer on death deed (often shortened to TODD) is a deed that names one or more people who will receive real property when the owner dies. Texas adopted it in 2015 through the Real Property Transfer on Death Act, now Chapter 114 of the Texas Estates Code. It applies to deeds signed on or after September 1, 2015. Until the owner dies, nothing changes. The...