Consider whether a Texas transfer-on-death deed is appropriate for transferring a real-property interest at death without relying on that deed for incapacity planning.
What a transfer-on-death deed does
A Texas transfer-on-death deed (TODD) can direct the transfer of a property interest to named beneficiaries at death. During the owner’s lifetime, the instrument is revocable and generally does not itself give the beneficiary present ownership.
Execution and recording are essential
A TODD is a statutory instrument with specific formalities and recording requirements. Mistakes in property descriptions, ownership, or recording timing can undermine its intended effect.
A TODD does not replace a complete estate plan
The deed concerns identified real property, not automatically bank accounts, healthcare decisions, or incapacity. Mortgages, creditor claims, taxes, and title concerns can remain relevant.
Compare a deed to a trust
For some simple ownership situations, a TODD may be appropriate. Families with multiple properties, complicated beneficiaries, ongoing management needs, or incapacity concerns may need a broader arrangement such as a trust.