As an adult, you want to ensure that your future will become stable and secure. This includes drafting a plan that elaborates how you want your property to be inherited after you pass away.
In Texas, a Transfer on Death Deeds (TODD) is a legal document that allows for a quick and efficient transfer of property to the grantor’s beneficiaries upon their death without probate court. To help provide more clarity on this topic, here are five commonly asked questions about a TODD:
How does a Transfer on Death Deed (TODD) work?
When a person passes away with a valid TODD, their property can be transferred to their chosen beneficiaries directly, without needing to go through probate and paying for expensive court costs and other fees.
A TODD also lets the grantor have full control and ownership rights to their property for as long as they are still alive. Upon death, the grantor’s TODD takes effect, and the property interest is passed on to the beneficiary or beneficiaries.
What happens if my beneficiary passes away?
If your beneficiary dies before you or survives less than five days after your passing, your TODD will become invalid and your property will undergo probate. To avoid any legal hurdles from arising, a good rule of thumb is to name an alternate beneficiary on your Transfer on Death Deed.
Can a TODD affect my property ownership while I am still alive?
Since a valid TODD only takes effect upon the grantor’s death, it will not affect your legal rights as the property owner. This means that your named beneficiary cannot rent, sell or control your property while you are still alive.
How can I update my TODD?
You can revise your written document by recording a new TODD with a different beneficiary and having it notarized. However, it is important to remember that your new TODD must be filed in the county where your property is located.
Does a TODD replace my will?
No, a TODD does not replace a will. While both documents are estate planning tools, a will discusses how you want your assets to be distributed, while a TODD discusses how you want your real estate property to be transferred.
For example, a TODD cannot legally distribute your personal belongings, such as paintings, cars, clothing, jewelry and furniture. On the other hand, it can legally distribute your houses, buildings and land.
By thinking ahead, you can safeguard your future
We all deserve to leave this world with peace and honor. By carefully planning your Transfer on Death Deeds and understanding the legal process involved, you can ensure that you will be able to leave your loved ones with the property that you wish for them to inherit.
