Transfer on Death Deed in Texas — Avoid Probate on Your Home

A Transfer on Death Deed (TODD) lets Texas homeowners pass real property directly to named beneficiaries at death — completely bypassing the probate process — without giving up any ownership rights during their lifetime. Governed by Texas Estates Code §§ 114.001–114.106, the TODD is one of the most powerful and underutilized estate planning tools available to Texas property owners.

What Is a Texas Transfer on Death Deed and Who Qualifies?

Under Texas Estates Code § 114.004, any owner of real property in Texas — whether a single individual, spouses holding community property, or joint tenants — may execute a Transfer on Death Deed. The deed takes effect only at the owner’s death; until then, the owner retains full control to sell, mortgage, lease, or revoke the deed entirely. Key eligibility facts:

• Texas law requires the TODD to be signed, notarized, and recorded in the county where the property is located before the owner’s death
• The deed is completely revocable at any time before death — just record a revocation or a new TODD in the same county
• Beneficiaries receive no present interest and cannot block a sale, refinance, or lease during the owner’s lifetime
• Texas allows alternate beneficiaries — if a primary beneficiary dies first, the property passes to your named alternate instead of lapsing
• Roughly 30 states now recognize the TODD or a similar deed; Texas’s version is among the most flexible in the country

Learn how a TODD fits into a complete estate plan on our estate planning attorney page.

TX Estates Code § 114.055 — How a TODD Avoids Probate Entirely

Probate in Texas typically takes 6–12 months and costs 3–5% of the estate’s gross value in attorney fees, court costs, and executor compensation. A properly recorded TODD eliminates that cost and delay for your home entirely:

• No probate required — the beneficiary records an affidavit of survivorship and a certified death certificate; the deed transfers automatically
• No court supervision — the county clerk handles the recording; no judge, no inventory, no creditor notice period for the property itself
• Stepped-up tax basis — beneficiaries inherit at the fair market value at date of death, which can eliminate capital gains tax on appreciation during the owner’s lifetime
• Medicaid claw-back risk — Texas Medicaid may still assert a claim against the property after death if the owner received benefits; an attorney review is essential if this applies

Recording Requirements Under TX Estates Code § 114.057 — Errors That Void the Deed

Texas Estates Code § 114.057 imposes strict execution and recording requirements. A TODD that fails any of these is void and the property will pass through probate as if the deed never existed:

• Must be in writing — oral promises or informal notes have no legal effect
• Must be signed by the transferor — no proxy or power-of-attorney signatures
• Must be acknowledged before a notary public — two-witness alternatives do not satisfy the Texas statute
• Must be recorded in the real property records of the county where the property is located before the transferor’s death — a signed-but-unrecorded TODD is completely ineffective
• Must contain the statutory language required by § 114.051 — generic “transfer on death” language in a standard deed does not qualify

TODD vs. Will vs. Living Trust — Which Is Right for Your Home?

Each transfer method has distinct costs, timelines, and protections. Here is how they compare for a Texas home:

• Transfer on Death Deed — Cost: $300–$600 attorney fee + recording fee (~$25); Timeline: immediate at death; Probate: none; Revocability: fully revocable
• Will — Cost: $500–$2,000 drafting + 3–5% of estate in probate fees; Timeline: 6–12 months court process; Probate: required; Revocability: fully revocable
• Revocable Living Trust — Cost: $1,500–$5,000 setup; Timeline: immediate at death; Probate: none; Revocability: fully revocable; added benefit of incapacity planning
• Joint Tenancy with Right of Survivorship — Cost: low; Timeline: immediate; Probate: none; but co-owner gets present ownership rights, which can complicate sales and create gift-tax issues

For most Texas homeowners with one or two properties and named adult beneficiaries, the TODD is the simplest and least expensive probate-avoidance tool available. Homeowners with complex family situations, minor children, or multiple properties often benefit from a revocable living trust instead.

5 Steps to Create a Valid Texas Transfer on Death Deed

1. Obtain the current legal description — Pull your deed from the county property records to get the exact legal description; a street address alone is insufficient
2. Draft the deed using statutory language — Use the form prescribed by Texas Estates Code § 114.051 or have an attorney draft it; errors in language can void the deed
3. Sign before a notary — Both spouses must sign if the property is community property or held jointly
4. Record in the county real property records — File with the county clerk where the property is located; recording fees typically run $25–$50
5. Store copies and notify your beneficiaries — Keep a certified copy with your estate documents and tell your beneficiaries where to find it; they will need it to claim the property