Three main options: a will (goes through probate), a living trust (avoids probate), or a transfer on death deed (TODD, avoids probate). For most homeowners with real estate, a living trust or TODD is best because it avoids the time and expense of probate court. Consult an estate planning attorney to choose the right option.
Will vs Living Trust
A will is a legal document that specifies who inherits your property, but it must go through probate. Probate in Texas takes 4-9 months minimum and costs 3-7% of the estate value. A living trust holds the title to your home during your lifetime and transfers it to beneficiaries without probate. The trust is private, faster, and often cheaper in the long run.
Transfer on Death Deed (TODD)
Texas allows a transfer on death deed, which lets you name a beneficiary to receive your home upon your death without probate. It is revocable, costs nothing to create (besides attorney fees if you use one), and takes effect only upon your death. The beneficiary has no rights to the property while you are alive.
When to See an Attorney
Estate planning for real estate involves specific legal requirements. An experienced estate planning attorney can help you choose between a will, trust, TODD, or a combination. Factors include your family situation, the value of your estate, whether you have minor children, and your long-term care goals. DIY options exist but carry risk if done incorrectly.