Transference of Death Deed
In Texas, a Transfer on Death Deed (TODD), also known as a Transfer on Death Instrument (TODI), allows an individual to designate beneficiaries who will inherit their real property upon their death, without the need for probate. This legal instrument is governed by Chapter 114 of the Texas Estates Code.
Here's how it works:
1. Ownership The property owner retains full ownership and control of the property during their lifetime.
2. Beneficiary Designation The property owner names one or more beneficiaries who will receive the property upon the owner's death.
3. Execution The TODD must be executed and recorded in the county where the property is located before the owner's death.
4. Revocability The TODD is revocable during the owner's lifetime, meaning they can change or revoke it at any time, as long as they have the capacity to do so.
5. Transfer on Death Upon the owner's death, the property automatically transfers to the designated beneficiaries outside of probate. The beneficiaries will need to file an Affidavit of Death and a certified copy of the owner's death certificate with the county clerk to transfer the title.
6. Debts and Liens It's important to note that any debts or liens against the property at the owner's death will still need to be settled, but the property will not be subject to the probate process.
TODDs are a useful estate planning tool for individuals who want to avoid probate and simplify the transfer of real property to their chosen beneficiaries. However, it's crucial to consult with a qualified estate planning attorney to ensure that a TODD aligns with your overall estate planning goals and that it is properly executed according to Texas law.
