Transfer on Death Deed Texas: How to Skip Probate on Your Home

A Texas homeowner who dies without a probate-bypass strategy forces their family into court — even when the estate qualifies for independent administration, the simplest path in the state. A Transfer on Death Deed (TODD) sidesteps that entirely by naming a beneficiary who receives the property automatically at death, no probate filing required.

Texas authorized TODDs under the Texas Estates Code (effective September 2015), joining more than half of U.S. states that now recognize some form of beneficiary deed. The mechanism is straightforward, but the execution details matter — a defective TODD provides zero protection and your family ends up in probate court anyway.

How a Texas Transfer on Death Deed Works

A TODD is a real property deed that transfers ownership to a named beneficiary only upon the owner's death. During your lifetime, the deed has no effect: you retain full ownership, can sell the property, refinance it, or revoke the deed at any time. The beneficiary has no legal interest in the property until you die.

To be valid under Texas law, a TODD must:

• Be signed by the property owner (the transferor) while they have legal capacity
• Include the legal description of the property (lot and block or metes and bounds — not just the street address)
• Name at least one beneficiary
• Be notarized
• Be recorded in the county clerk's office of the county where the property is located before the owner's death

That last requirement trips people up. A TODD sitting in a desk drawer is worthless. It must be filed with the county clerk while you're alive.

TODD vs. Lady Bird Deed: Which One Works Better

Texas is one of the few states that recognizes both Transfer on Death Deeds and Lady Bird Deeds (Enhanced Life Estate Deeds). They accomplish similar goals — both bypass probate and both allow you to keep full control during your lifetime — but they work differently.

Transfer on Death Deed: A standalone document you record with the county. Revocable anytime by recording a revocation instrument. Does not change your current ownership or title. The beneficiary receives a new deed at death.

Lady Bird Deed: Modifies your existing deed by granting a "remainder interest" to a beneficiary while reserving an enhanced life estate for yourself. You retain the right to sell, mortgage, or revoke without the beneficiary's consent.

The practical difference: a Lady Bird Deed is harder to revoke because it requires recording a new deed, while a TODD revocation is a simple one-page form. But Lady Bird Deeds have a longer track record in Texas courts and are more widely recognized by title companies.

Both deeds protect the homestead from Medicaid Estate Recovery (MERP) because the property passes outside probate. MERP in Texas can only pursue assets that flow through the probate estate — a properly executed TODD or Lady Bird Deed keeps the home out of that reach entirely.

Who Should Use a TODD

A TODD works best when:

• You own a single property (your homestead) and want it to pass to one or two beneficiaries
• You want the simplest possible revocation process
• You don't need the property to fund a trust or complex estate plan
• You want to avoid the cost of an attorney drafting a Lady Bird Deed (though an attorney is still recommended for a TODD)

A TODD does not work for:

• Multiple properties with different beneficiaries (you'd need a separate TODD for each)
• Situations where you want the beneficiary to have a present interest (use a joint tenancy or trust instead)
• Community property where both spouses need to sign — both owners must execute the TODD

The MERP Protection Angle

For Texas residents who received Medicaid long-term care benefits after age 55, estate recovery is a real threat. The Texas MERP program files claims against the probate estate to recoup nursing facility and STAR+PLUS waiver costs. If your homestead passes through a will or intestacy, MERP can claim against it.

Critically, a MERP claim is classified as an unsecured debt — which means its mere existence disqualifies your estate from using Texas's streamlined Muniment of Title probate process. Your family gets pushed into full dependent administration, which costs thousands more and takes months longer.

A TODD eliminates this problem. The property transfers to the beneficiary at death outside the probate estate. MERP has no legal basis to pursue it.

How to Revoke a Texas TODD

Revoking a TODD is simpler than revoking a Lady Bird Deed. You record a revocation instrument with the same county clerk's office where the original TODD was filed. The revocation must:

• Reference the original TODD (recording information)
• Be signed and notarized
• Be recorded before your death

You can also revoke a TODD by recording a new TODD for the same property — the later deed supersedes the earlier one. Selling the property effectively revokes the TODD as well, since you no longer own the property described in the deed.

Filing and Costs

Recording a TODD with a Texas county clerk typically costs between $26 and $50, depending on the county and page count. If you use an attorney to draft the deed, expect to pay $200 to $500. Online legal services offer template TODDs for less, but Texas real property law is unforgiving about legal descriptions and execution formalities — a defective deed provides no protection.

Connect Your TODD to Your Advance Directive Plan

A Transfer on Death Deed handles what happens to your property. But it doesn't address what happens to you during a medical crisis. Texas advance directives — including your Directive to Physicians, Medical Power of Attorney, and Out-of-Hospital DNR — ensure your healthcare wishes are honored while you're alive but unable to communicate them.

The Texas Advance Directive & Living Will Kit walks you through executing all four statutory documents with witness validation checklists, a hospital intake coversheet, and a physician cover letter — so your medical and property plans work together.

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