Texas Transfer on Death Deed

Introduction

Key Things to Know

1. 1

   In Texas a transfer on death deed is a deed you record while alive that names a beneficiary to receive your real property automatically at your death, without probate (Tex. Estates Code 114.001 and following).

2. 2

   During your life the deed has no effect on your ownership. You keep full control and can sell, mortgage, or revoke it, and the beneficiary has no interest in the property until you die (Tex. Estates Code 114.101).

3. 3

   To be valid the deed must contain the essential elements and formalities of a recordable deed, so you sign it and have your signature acknowledged before a notary, and it must say the transfer occurs at your death (Tex. Estates Code 114.055). Texas does not require witnesses.

4. 4

   The deed is not effective unless it is recorded before your death in the deed records in the county clerk's office of the county where the property is located (Tex. Estates Code 114.055). A deed recorded after you die does not work.

5. 5

   The deed is effective without notice to, delivery to, or acceptance by the beneficiary, and without consideration, so the beneficiary does not have to pay or agree to anything (Tex. Estates Code 114.056).

6. 6

   The deed is revocable during your life by recording an instrument of revocation, a later transfer on death deed, or a conveyance of the property. A will may not revoke or supersede a Texas transfer on death deed (Tex. Estates Code 114.057).

7. 7

   At your death the beneficiary takes the property subject to any mortgages and liens on it, and the property can still be reached to satisfy claims against your estate (Tex. Estates Code 114.104, 114.106).

Texas Requirements for Transfer on Death Deed

• Meet the Recordable Deed Requirements

  Texas does not provide a statutory fill-in form. The deed must contain the essential elements and formalities of a recordable deed and state that the transfer to the beneficiary occurs at the owner death (Tex. Estates Code 114.055).

• Legal Description of the Property

  The full legal description of the property from the current recorded deed, plus the street address and county. A street address alone is not enough to record the deed in the county deed records.

• Name the Beneficiary and an Alternate

  The full legal name of the beneficiary who will receive the property at the owner death, and an alternate beneficiary if the first does not survive the owner. Naming a backup keeps the property out of probate if the first beneficiary dies first.

• Notarize the Signature

  The owner must sign the deed and have the signature acknowledged before a notary, because a Texas transfer on death deed must have the formalities of a recordable deed. Texas does not require witnesses.

• Record Before the Owner Dies

  The deed is not effective unless it is recorded in the deed records in the county clerk office of the county where the property is located before the death of the owner (Tex. Estates Code 114.055). Record it promptly after signing.

• No Payment or Beneficiary Consent Needed

  The deed is effective without notice to, delivery to, or acceptance by the beneficiary, and without consideration (Tex. Estates Code 114.056). The beneficiary does not have to pay or agree to anything while the owner is alive.

• Revoke Only by Recorded Instrument

  The deed is revocable during the owner life by recording an instrument of revocation, a later transfer on death deed, or a conveyance, in each case before death (Tex. Estates Code 114.057). A will may not revoke or supersede a Texas transfer on death deed.

• Property Passes Subject to Debts

  At the owner death the beneficiary takes the property subject to mortgages and liens on it (Tex. Estates Code 114.104), and the property can still be reached to satisfy claims against the estate (Tex. Estates Code 114.106).