Made effective in Texas in 2016, a Transfer on Death Deed (TODD) applies to property. It is a deed signed in writing by the owner of a property, recorded in the county of which the property is located, and names who the property will pass on to upon the death of the property owner. Having a Transfer on Death Deed can help avoid the probate process and streamline the transfer of property upon one’s death.

A Transfer on Death Deed (TODD) allows the property owner to continue to keep all ownership rights to their property during their lifetime. Once the property owner dies, the person(s) stated on the TODD will receive the property. More than one person can be named, and changes of the beneficiaries can be made at any time without their involvement. 

Transfer on Death Deeds includes land, homes, buildings, uncut timber, and mineral rights. They must be signed, notarized, and recorded in the county where the property is located before the owner dies. A beneficiary may be a person, organization, institution, charity, trust, etc.  Property need not be paid off to be transferred to a beneficiary. However, all liens, mortgages, and judgments, as well as claims of other creditors, may be applied against the property. Mortgages, liens, and notes follow the property and will become the responsibility of the new owner. 

For a Transfer of Death Deed to be enforceable, it must:

• Be in writing;
• Have the legal description of the property;
• Include the names and addresses of the beneficiary(s) (this must be specific and not general, such as “all of my children”);
• Explicitly state that the transfer of property will not occur until the owner’s death; and
• Be done during the lifetime of the owner and recorded in the county where the property is located.

It is recommended to have a Transfer of Death Deed, even if you have a will, as part of your estate planning. In the event that one’s will and Transfer of Death Deed do not list the same beneficiary, the Transfer of Death Deed will be enforced rather than the will and the property will go on to the person listed on the deed. A Transfer of Death Deed trumps a will. 

Once the owner of the property has passed, the beneficiary of the property listed on the Transfer of Death Deed must present an ‘Affidavit of Death’ form for the title of the property to be transferred. After the Affidavit of Death is filed, proof of death of the property owner must be provided by either a death certificate or obituary to the title company before the property can be sold, used as collateral, or get property tax exceptions.  Importantly, a Transfer of Death Deed  must be filed in the county of record where the property is located before the owner's death.