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| [[Category:Featured Article]]<indicator name="featured">[[File:Featured_article_star.svg|25px]]</indicator>[[File:TRPTODA.jpg|150px|border|right|Senate Bill 462]]''Summary: Article, targeted to non-lawyers, provides general information regarding the Texas Transfer on Death Deed.''
| | [[File:TRPTODA.jpg|150px|border|right|Senate Bill 462]]''Summary: Article provides brief introduction to TRPTODA and links to other pages that contain text of and detailed analysis on each section.'' |
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| In 2015, Texas approved legislation authorizing a new method of transferring real property that is located within the state.
| | The TRPTODA authorizes a new method of transferring real property. It allows an owner to designate one or more beneficiaries to automatically receive the property at death. |
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| The [[Texas Real Property Transfer on Death Act]] (TRPTODA) allows an owner to name a beneficiary to receive the property. | | The property passes outside of probate by means of a transfer on death deed. Until death, the owner retains the right to transfer or encumber the property or revoke the deed. |
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| The property passes to the beneficiary outside the regular probate process by means of a transfer on death deed (TODD).
| | A transfer on death deed is useful, for example, to an owner who wants to modify the devolution provided by the Texas intestate statute and avoid the regular probate process. |
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| Until death, the owner retains the absolute right to revoke the deed or sell, mortgage or otherwise encumber the property.
| | On TLG, each section of the TRPTODA has its own page: |
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| This article, in question-answer format, addresses some of the various legal and practical issues raised by the TRPTODA.
| | * [[Estates Code:Section 114.001|Sec. 114.001. Short Title]] |
| | * [[Estates Code:Section 114.002|Sec. 114.002. Definitions]] |
| | * [[Estates Code:Section 114.003|Sec. 114.003. Applicability]] |
| | * [[Estates Code:Section 114.004|Sec. 114.004. Nonexclusivity]] |
| | * [[Estates Code:Section 114.005|Sec. 114.005. Uniformity of Application and Construction]] |
| | * [[Estates Code:Section 114.006|Sec. 114.006. Relation to Electronic Signatures in Global and National Commerce Act]] |
| | * [[Estates Code:Section 114.051|Sec. 114.051. Transfer on Death Deed Authorized]] |
| | * [[Estates Code:Section 114.052|Sec. 114.052. Transfer on Death Deed Revocable]] |
| | * [[Estates Code:Section 114.053|Sec. 114.053. Transfer on Death Deed Nontestamentary]] |
| | * [[Estates Code:Section 114.054|Sec. 114.054. Capacity of Transferor; Use of Power of Attorney]] |
| | * [[Estates Code:Section 114.055|Sec. 114.055. Requirements]] |
| | * [[Estates Code:Section 114.056|Sec. 114.056. Notice, Delivery, Acceptance, or Consideration Not Required]] |
| | * [[Estates Code:Section 114.057|Sec. 114.057. Revocation by Certain Instruments; Effect of Will or Marriage Dissolution]] |
| | * [[Estates Code:Section 114.101|Sec. 114.101. Effect of Transfer on Death Deed During Transferor's Life]] |
| | * [[Estates Code:Section 114.102|Sec. 114.102. Effect of Subsequent Conveyance on Transfer on Death Deed]] |
| | * [[Estates Code:Section 114.103|Sec. 114.103. Effect of Transfer on Death Deed at Transferor's Death]] |
| | * [[Estates Code:Section 114.104|Sec. 114.104. Transfer on Death Deed Property Subject to Liens and Encumbrances at Transferor's Death; Creditors' Claims]] |
| | * [[Estates Code:Section 114.105|Sec. 114.105. Disclaimer]] |
| | * [[Estates Code:Section 114.106|Sec. 114.106. Liability for Creditor Claims; Allowances in Lieu of Exempt Property and Family Allowances]] |
| | * [[Estates Code:Section 114.151|Sec. 114.151. Optional Form for Transfer on Death Deed]] |
| | * [[Estates Code:Section 114.152|Sec. 114.152. Optional Form of Revocation]] |
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| Its purpose is to assist non-lawyers investigating whether a Texas TODD is an appropriate estate planning device for them.
| | [[Category:TRPTODA| ]] |
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| The information is necessarily general and not a substitute for advice from an attorney concerning a particular fact situation.
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| —[[Attorney Directory:Steve Smith-Pflugerville|Steve Smith]]
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| ''<big>Why is a Texas TODD a popular estate planning device?</big>''
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| Because it is a statutorily authorized method of bypassing Texas probate. Avoiding probate saves legal fees and court costs.
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| A Texas TODD can also be useful for Medicaid. For example, it is disregarded for purposes of determining program eligibility.
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| But note that a transfer on death deed has a few serious limitations. For example, it often doesn't handle contingencies well.
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| ''<big>What is real property for purposes of the TRPTODA?</big>''
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| The "real property" that can be conveyed with a transfer on death deed includes land, buildings, fixtures, and mineral rights.
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| A Texas TODD cannot be used to transfer "personal property" such as household items, motor vehicles, or financial assets.
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| ''<big>Can I use a Texas TODD for property located in another state?</big>''
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| No. The TRPTODA applies only to Texas property. Note that non-residents may use a Texas TODD for land they own in Texas.
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| Texas residents who own real property in another state must research the law in that state to determine if it has a similar deed.
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| <big>''Can any individual or legal entity make a Texas TODD?''</big>
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| Only individuals (i.e., natural persons) can make a Texas TODD. Legal entities like corporations cannot use this will substitute.
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| An individual who owns real property jointly can make a Texas TODD. However, such deeds raise some additional legal issues.
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| <big>''What, in general terms, is the legal effect of a Texas TODD?''</big>
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| At the owner's death, a transfer on death deed conveys the real property subject to any mortgages, liens or other encumbrances.
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| It has no effect until the owner's death. The owner can revoke it for any reason. The owner is also free to encumber the property.
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| A fundamental feature of a Texas TODD is that, like a will, it has no effect during the owner's life on the legal rights of any person.
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| <big>''Does a Texas TODD affect the rights of unsecured creditors?''</big>
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| With one key exception, no. Under the TRPTODA, the property is secondarily liable for various claims against the owner's estate.
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| However, because the property is not deemed part of the estate, it is not liable for a [https://www.hhs.texas.gov/laws-regulations/legal-information/your-guide-medicaid-estate-recovery-program Medicaid Estate Recovery Program] claim.
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| <big>''What are the state and federal tax consequences of a Texas TODD?''</big>
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| A transfer on death deed has no legal effect during the owner's life so state ad valorem property tax exemptions are not affected.
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| Property conveyed by a Texas TODD is treated the same as probate property so beneficiaries receive a stepped-up federal basis.
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| ''<big>Is a statutory Texas TODD form available for the public?</big>''
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| No. The transfer on death deed form enacted in 2015 was completely repealed in 2019. See [[Estates Code:Section 114.151|Section 114.151]] for the details.
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| The legislation that repealed the statutory form also tasked the Texas Supreme Court with promulgating a new official form.
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| The matter was delegated to a forms committee but reliable sources report that limited progress has been made at this time.
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| A basic Texas TODD [https://texaslegalguide.com/images/Texas_TODD-free_transfer_form.pdf form] is available on this website. If you have questions or concerns about its use, [[Special:Contact/18685873|contact]] the author.
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| ''<big>What are the minimum requirements for a Texas TODD?</big>''
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| To be effective, a transfer on death deed must:
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| * contain a sufficient legal description of the real property;
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| * designate one or more beneficiaries to receive the property;
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| * state that the conveyance will occur at the owner's death;
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| * be in English and subscribed (i.e., signed) by the owner;
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| * be acknowledged before an authorized officer; and
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| * be recorded in the deed records before the owner's death.
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| ''<big>Do beneficiaries or witnesses have to sign a Texas TODD?</big>''
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| No. A transfer on death deed does not have to be signed by or delivered to beneficiaries and it does not require consideration.
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| Moreover, a Texas TODD does not require the execution formalities of a will or have to be filed and proven valid in probate court.
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| But because secrecy can create practical problems, it is recommended that the owner inform someone of the deed's existence.
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| <big>''What is the hardest step in completing a Texas TODD?''</big>
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| Obtaining the property description. This information is different from both the physical and the mailing address for the property.
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| Because it is usually incomplete, do not use the description of the subject real property listed on your county property tax bill.
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| A description is sufficient if it furnishes the means or data by which the real property may be identified with reasonable certainty.
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| The deed will fail if the description is insufficient. If you are not absolutely sure, do additional research and/or consult a lawyer.
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| ''<big>Where can I find the required legal description of the property?</big>''
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| This information would be on a deed of conveyance that you received when you became an owner of the subject real property.
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| If you did not receive such a deed or have misplaced it, the required legal description may be found in the county deed records.
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| ''<big>What types of real property description are common in Texas?</big>''
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| Urban property is usually described by "lot and block" (e.g., Lot 2, Block J, Section 1, of Westwood Ranch, a subdivision in ....).
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| For an example of how that type of property description appears on an actual Texas deed, see [[Media:Sample_L&B_Description_Deed.pdf|Sample L&B Description Deed]].
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| Rural property is usually described by "metes and bounds" (e.g., Being 5 acres of the Jim Fox Survey, Abstract No. 234, in ....).
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| For an example of how that type of property description appears on an actual Texas deed, see [[Media:Sample_M&B_Description_Deed.pdf|Sample M&B Description Deed]].
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| <big>''Who can be designated a beneficiary under a Texas TODD?''</big>
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| There is no legal restriction under the TRPTODA on who may be a beneficiary. You can designate any individual or legal entity.
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| But a conveyance to a minor (or other contractually incompetent person) or to multiple beneficiaries creates practical problems.
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| ''<big>Is a Lady Bird Deed the same thing as a Texas TODD?</big>''
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| No. A Lady Bird Deed (a.k.a. Enhanced Life Estate Deed) conveys the property interest immediately upon execution and delivery.
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| A transfer on death deed does not convey the property interest until the owner's death. See [[Estates Code:Section 114.004|Section 114.004]] for more information.
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| ''<big>Can I sign a Texas TODD for another person using a power of attorney?</big>''
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| No. The owner must sign. The TRPTODA prohibits the creation of a transfer on death deed "through use of a power of attorney."
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| The Act also provides that the capacity required to make a Texas TODD is the same as the capacity required to make a contract.
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| ''<big>How do I acknowledge a legal instrument like a Texas TODD?</big>''
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| To acknowledge a legal instrument, you appear before an authorized officer (e.g., a notary public) and state that you executed it.
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| Local financial institutions normally provide notary services. A notary public may or may not be available at the county courthouse.
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| ''<big>How do I record a Texas TODD in the deed records?</big>''
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| File the Texas TODD in the county clerk's office of each county in which any part of the property is located. There will be a filing fee.
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| After recording it, the county clerk's office will return the original to you. Retain it among your important papers for future reference.
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| The transfer on death deed must be recorded in the deed records before your death. If not properly recorded, it will be null and void.
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| ''<big>Does an inconsistent will prevail over a Texas TODD?</big>''
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| No. And the order is irrelevant. The TRPTODA expressly states that "[a] will may not revoke or supersede a transfer on death deed."
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| The Act provides several effective ways to revoke a Texas TODD. The most straightforward is to record an instrument of revocation.
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| ''<big>What happens if a beneficiary dies before or soon after the owner?</big>''
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| The answer depends on the complex interplay between the text of the Texas TODD, the TRPTODA, and general Texas probate law.
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| By default, the real property passes according to the Texas antilapse statute if a beneficiary fails to survive the owner by 120 hours.
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| Many of the numerous rules governing the effect of a transfer on death deed at the owner's death are subject to the text of the deed.
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| For example, the survival rule can be modified and alternate beneficiaries can be added. See [[Estates Code:Section 114.103|Section 114.103]] for more information.
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| ''<big>What paperwork must a beneficiary record after the owner's death?</big>''
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| As a legal matter, none. The conveyance is automatic. But it is recommended that the beneficiary record the owner's death certificate.
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| The beneficiary should also notify the county tax office. This will ensure that property tax statements are issued to the proper person.
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| Note that a beneficiary is not required to accept. For various reasons, the beneficiary may choose to execute and record a disclaimer.
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| ''<big>Do beneficiaries have to wait two years before their title is clear?</big>''
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| For two years after the owner's death, the property is liable for various claims against the estate to the extent the estate is insufficient.
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| Nevertheless, a beneficiary may be able to assemble information demonstrating that the estate has the assets to pay all valid claims.
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| In that circumstance, most Texas title companies have been willing to insure transactions occurring within the two-year liability period.
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| ''<big>Should I consult with a lawyer before using a Texas TODD?</big>''
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| There are a variety of estate planning devices, from a transfer on death deed to a will to a trust to a life estate or a survivorship estate.
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| Each has its own advantages and disadvantages. For example, a trust typically handles contingencies better but it is more expensive.
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| A Texas TODD may or may not be the best choice, so you should consult with a knowledgeable lawyer before making a final decision.
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| [[Category:TRPTODA]]
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| [[Category:Estates Code]] | | [[Category:Estates Code]] |
| [[Category:Probate Law]] | | [[Category:Probate Law]] |
| [[Category:Legal Self-Help]]
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| [[Category:By Steve Smith]] | | [[Category:By Steve Smith]] |
| [[Category:WikiSEO Extension]] | | [[Category:WikiSEO Extension]] |
| {{#seo: | | {{#seo: |
| |title=Featured Article: Texas Transfer on Death Deed | | |title=Texas Real Property Transfer on Death Act |
| |keywords=transfer on death deed, free Texas TODD form, avoid probate | | |keywords=transfer on death deed, Texas TODD, avoid probate |
| |description=The article's purpose is to assist non-lawyers investigating whether a Texas TODD is an appropriate choice for them. | | |description=Introduction to the TRPTODA and links to other pages that contain the text of and detailed analysis on each section. |
| |locale=en-US | | |locale=en-US |
| |site_name=TLG (texaslegalguide.com) | | |site_name=TLG (texaslegalguide.com) |