A transfer on death deed (TODD) allows you to name a beneficiary to inherit your Texas home without probate. It is free to create (or low cost with an attorney), revocable at any time, and only takes effect upon your death. You must sign the deed before a notary and record it with the county clerk before your death for it to be valid.
How a TODD Works
You prepare a deed that names one or more beneficiaries to receive the property upon your death. The deed must be signed, notarized, and recorded with the Bexar County Clerk (or the county where the property is located). You retain full ownership and control of the property while you are alive. You can sell, mortgage, or revoke the deed at any time.
Benefits of a TODD
A TODD avoids probate for the real estate it covers. It is revocable, so you can change your mind. It costs nothing but notarization and recording fees (typically less than $50). It does not affect your current ownership or your ability to get a mortgage. It does not trigger due-on-sale clauses or property tax reassessment.
Creating and Recording a TODD
Texas law requires specific language for a valid TODD. You can find forms online, but an attorney is recommended to ensure compliance. The deed must be recorded before your death. If it is not recorded, it is invalid. Name contingent beneficiaries in case your primary beneficiary predeceases you.