An Efficient Way to Pass on Your Home Without Probate
One of the most valuable assets in any estate is often a person’s home. For Texas residents, there’s a powerful estate planning tool that allows you to pass your real estate directly to a loved one without the need for probate: the Transfer on Death Deed (TODD).
At Haugen Law Firm, P.C., we help families across Denton, Collin, Cooke, Dallas, and Tarrant counties understand and utilize TODDs to simplify estate transfers and protect their homes. Here’s what you need to know.
What Is a Transfer on Death Deed?
A Transfer on Death Deed (TODD) is a legal document that allows you to name one or more beneficiaries who will automatically receive your real estate upon your death—without going through probate.
Think of it as naming a beneficiary for your home, just like you would for a bank account or life insurance policy.
Key Features:
- Applies only to real estate
- Becomes effective only upon your death
- Can be revoked or changed at any time while you're alive
- Keeps you in full control of your property during your lifetime
What Property Can Be Transferred?
A TODD can be used for any real property you own in Texas, including:
- Your primary residence
- Rental properties
- Undeveloped land
- Vacation homes
You must own the property outright or have the right to transfer it. If you own it jointly with someone else (e.g., a spouse), special rules may apply.
Advantages of a TODD in Texas
Using a TODD offers several benefits, especially for individuals looking to avoid the cost and delay of probate.
1. Avoid Probate
The biggest advantage of a TODD is that it allows real estate to pass directly to your beneficiary without the time and expense of probate court.
2. Maintain Control
You can sell, refinance, or change your beneficiary at any time. The TODD only takes effect after your death.
3. Keep It Private
Unlike a will, a TODD is not part of the public probate process, which helps maintain privacy.
4. Low Cost, High Value
Compared to setting up a trust, creating a TODD is a relatively simple and affordable way to protect your home and pass it on efficiently.
Potential Drawbacks and Considerations
While TODDs are a great tool in many situations, they may not be right for everyone.
1. They Don’t Avoid Creditors
Any debts or liens on your property (like a mortgage or tax bill) will transfer with the home. Your beneficiary must handle those obligations.
2. Can Cause Conflict If Not Coordinated
If your will, trust, and TODD contradict each other, it can lead to legal disputes. TODDs generally override instructions in your will regarding that specific property.
3. Beneficiary Coordination Matters
If you’re leaving the home to multiple beneficiaries, a TODD can lead to complications if they disagree about what to do with the property. Joint ownership may require them to sell or divide proceeds.
That’s why it’s essential to consult an experienced estate planning attorney before filing a TODD.
How to Create a TODD in Texas
The process is relatively straightforward, but legal accuracy is critical.
Work with an attorney to ensure your TODD is properly drafted and legally valid.
Name your beneficiaries clearly. You can name more than one person, and even include contingencies.
File the deed with the county clerk in the county where the property is located—just creating it isn’t enough.
Review it regularly—especially after life changes like marriage, divorce, or the death of a named beneficiary.
Should You Use a TODD or a Trust?
A revocable living trust can also keep property out of probate while offering more control over how and when assets are distributed. TODDs work well for simple estates.
Protect Your Home—and Your Legacy
At Haugen Law Firm, P.C., we know how important it is to keep your property in the right hands and out of probate court. Whether you’re considering a Transfer on Death Deed or want to explore other estate planning options, our experienced team is here to help you make the best choice for your family.
We’re proud to serve families and individuals across Denton, Collin, Cooke, Dallas, and Tarrant Counties with trusted legal guidance in family law, criminal defense, and estate planning. If you have questions about your legal rights or need personalized support, our dedicated team is here to help. Contact us today!