A transfer on death deed, often called a TODD, is one of the simplest ways to pass a Texas home to someone without probate. It is also one of the most misunderstood.
This guide explains how a TODD works, where it helps and where it can cause problems. It is general education, not legal advice for your situation.
What a transfer on death deed is
A TODD is a deed that names who receives your real estate when you die. Texas allows it under Chapter 114 of the Texas Estates Code, also known as the Texas Real Property Transfer on Death Act.
While you are alive, nothing changes. You still own the property, live in it, sell it or borrow against it. At your death, ownership passes to the beneficiary you named.
Why the formalities matter
A TODD is a real estate document, and Texas sets strict formalities for it. It must meet the requirements of a recordable deed and be recorded in the county deed records before the owner dies. An agent acting under a power of attorney cannot sign one for the owner.
Families often learn too late that a deed was signed but never recorded, that a revocation was never filed, or that the legal description was wrong. Those mistakes usually surface only after death, when they can no longer be fixed. That is why we handle the drafting, signing and recording as one coordinated step, as part of a plan that fits the rest of your estate.
It can be revoked, and the beneficiary has no rights yet
A TODD is always revocable. You can record a later document that revokes it, or record a new TODD that replaces it. Selling or giving away the property during your life generally defeats the transfer as well.
The beneficiary has no ownership interest while you are alive. They cannot stop you from selling, cannot block a loan and do not have to be told about the deed. After your death, the beneficiary typically records proof of the owner's death, such as a certified death certificate or an affidavit, so the public record reflects the new owner.
What a TODD does not do
A TODD moves one asset. It does not solve everything people hope it will. Keep these points in mind:
- Creditors. A TODD does not by itself shield property from the owner's creditors. If the probate estate cannot cover valid claims and expenses, the property can be reached.
- Mortgages. The loan generally stays with the property. A beneficiary who inherits a home with a mortgage inherits the obligation to deal with it.
- Medicaid. Rules on long-term care benefits and estate recovery can affect how a TODD works in practice. Talk to an attorney before relying on a deed for benefits planning.
- Homestead. A TODD can sit alongside homestead protections, but it does not replace thoughtful planning around them.
Questions to answer before you sign
Who is the backup? If your named beneficiary dies before you, the property may not pass the way you expect. A beneficiary must generally outlive you by a short period, and a share that fails is handled under default rules that may not match your wishes. A well-drafted deed addresses contingent beneficiaries and what happens if a beneficiary does not survive you.
Is the property community property? For married couples, ownership and the surviving spouse's needs matter. A deed that sends a community property home to a child at your death may not match what you want for your spouse.
What if the beneficiary is a minor, has creditors or is in a fragile situation? A deed hands over the property with no management and no protection. Everything depends on the beneficiary.
Does it conflict with your will or trust? If a valid recorded TODD and a will cover the same property, the deed generally controls, because a will cannot revoke a TODD. Many families do not realize their will says one thing while a recorded deed says another.
Why a TODD is not a full estate plan
A TODD works only at death, and only for the real estate it describes. It does not:
- Plan for incapacity. If you cannot manage your affairs, a TODD gives no one authority to act.
- Provide for minor children or name guardians.
- Manage how and when a beneficiary receives value.
- Coordinate your accounts, business interests and personal property.
- Fix a plan that is already out of sync, such as a will that contradicts the deed.
A deed can be a useful piece of a plan. It is rarely the whole plan.
TODD vs. living trust
Both can move a home to your family without probate. They do it differently.
A TODD is simple in concept, but it is narrow and gives you little control. A funded living trust takes more work, and it lets you plan for incapacity, stage distributions, protect a surviving spouse and keep the arrangement private.
Neither is always better. Texas probate is often manageable, and some owners are well served by a simple deed. For a closer comparison, see our guide on will or living trust in Texas, and our overview of Collin and Denton County probate.
A word about DIY forms
Online TODD forms are easy to find. They are also easy to get wrong. Common errors include a faulty legal description, a missing acknowledgment, no contingent beneficiary and failure to record before death.
Mistakes in a deed often do not show up until the family needs it, when they are hard or impossible to fix. A short review with an attorney costs far less than a title dispute.
Next step
We don't sell documents; we design strategy. In your Alers Legacy Strategy Session, we look at your home, your family and your goals, and then recommend whether a TODD, a trust or another structure fits. Learn more about our estate planning work.
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Not sure where to start? Schedule a free 15-minute discovery call with our team.
FAQs
Does a transfer on death deed avoid probate in Texas?
For the real estate it covers, generally yes, if the deed is valid and recorded before death. Other assets may still need probate.
Can I change or cancel a TODD?
Yes. A TODD is revocable. You can record a revocation or a new deed, and the beneficiary has no right to object while you are alive.
Does the beneficiary have to sign or accept it?
No. The beneficiary does not need to sign, receive or even know about the deed. They can decline the property after your death through a formal disclaimer.
Can a TODD protect my home from creditors or Medicaid?
Not by itself. A TODD does not shield property from the owner's creditors, and benefits rules can affect how it works. Get advice for your facts.
What happens if my beneficiary dies before I do?
It depends on how the deed is written and on the facts. A well-drafted deed names contingent beneficiaries and addresses this directly, so your wishes do not depend on default rules.