Summary: A transfer-on-death deed for a home in Texas lets you name a beneficiary to receive your house automatically at your death, with no court process. For new Austin homeowners, the transfer-on-death deed is one of the simplest and most powerful estate-planning tools available.
Key Takeaways
- A Texas transfer-on-death deed lets a homeowner name a beneficiary to receive real property at death
- The deed bypasses the court for the home, even when no other planning is in place
- Texas TODDs are revocable during the owner’s lifetime and take effect only at death
- TODDs work for sole owners and married couples in shared property situations
- Working with a Texas attorney protects the deed and the broader plan
The closing was last week. You signed every page, got the keys, and now the house is yours. Then a friend mentions probate, and you realize you have no idea what happens to this place if something happens to you.
According to the Central Texas Housing Report, about 6,186 homes closed in the Austin metro during the first quarter of 2026. Thousands of new homeowners are taking titles across Travis, Williamson, and Hays counties.
Every new property owner has a decision to make about what happens to the home at death. A transfer-on-death deed answers the question in two pages. The deed names the beneficiary you want to receive the house, files with the county, and bypasses the court process.
In this post, you’ll learn:
- What a transfer-on-death deed for a home does under Texas law
- How a TODD compares to a Lady Bird deed and a trust
- How the deed helps Austin homeowners avoid probate
- What a TODD does not cover, including bank accounts and Medicaid recovery
What Is a Transfer on Death Deed in Texas?
A transfer-on-death deed is a recorded document that names a beneficiary to receive your home upon the owner’s death. Texas authorized the form in 2015 under the Texas Real Property Transfer on Death Act, codified at Texas Estates Code Chapter 114.
The deed transfers nothing during your lifetime. The property owner keeps full ownership, full control, and the right to sell, refinance, or revoke the deed at any time. The property transfer happens only when the owner dies.
How a Transfer on Death Deed Works
You sign the deed, have it notarized in front of two witnesses if required, and record it with the county recorder where the property sits. In Travis County, that means filing with the Travis County Clerk’s office before the owner’s death.
The named beneficiary takes title automatically upon the owner’s death. The beneficiary files a death certificate with the county, and the property transfers to the new owner without a court proceeding.
Why a Home Transfer on Death Deed Matters for Austin Homeowners
For most Austin families, the home is the largest single asset they will ever hold. A home transfer-on-death deed makes sure that the asset passes to the person you choose without delay or court fees.
The deed works whether you have other planning in place or not. Many new owners use a TOD as a first step while they build out a more comprehensive plan through a will or trust.
TODD vs. Lady Bird Deed vs. Trust in Texas
Texas homeowners have three main ways to pass a home outside of the court process: a transfer-on-death deed, a Lady Bird deed, or transferring the real estate into a trust.
A deed transferring real estate into a trust by use of a warranty deed or transferring real estate to a beneficiary by transfer-on-death deed or lady bird deed are all recorded deed options. All options, transfer to a trust or transfer on death deed can help keep the home out of probate, and all are revocable during your lifetime and widely used in Texas planning.
The right choice depends on your goals around Medicaid, family flexibility, privacy, asset coordination, and how you want the home to fit into the rest of your estate plan.
Lady Bird Deed Basics
A Lady Bird deed, sometimes called an enhanced life estate deed, gives the current owner a life estate with the power to sell, mortgage, or revoke without the beneficiary’s permission. Texas recognizes the Lady Bird deed through common law and decades of court practice.
The deed has been used in Texas long before the statutory TODD existed. It is especially common in Medicaid planning, where the structure may offer some protection from recovery in specific cases.
How a Trust Handles Real Estate
A trust works differently. Instead of naming a beneficiary directly on the deed, the homeowner transfers the property into the trust, and the trust terms control what happens to the home after death.
This can be helpful for homeowners who want more detailed instructions, multiple beneficiaries, more privacy, or broader planning for multiple assets.
When a TODD Makes More Sense
A transfer-on-death deed is the cleaner, statutory option when there is a single beneficiary. The form, requirements, and revocation process are spelled out in the Texas Estates Code, which gives title companies more comfort when the property later sells.
For most new Austin homeowners without complex Medicaid concerns, a TODD is the simpler choice. The form is straightforward to draft, easy to revoke, and clearly recognized by Texas law.
Texas Deed Features: TODD vs. Lady Bird Deed vs. Trust
Texas homeowners often compare TODDs, Lady Bird deeds, and trusts when deciding how to keep real estate out of probate. Here is a simple overview:
| Feature | Transfer on Death Deed (TODD) | Lady Bird Deed | Trust |
|---|---|---|---|
| Authority | Texas Estates Code Ch. 114 | Common law / court-recognized | Texas trust law |
| Avoids probate | Yes | Yes | Yes, if the property is properly transferred into the trust |
| Revocable during life | Yes | Yes | Usually, if structured as a revocable trust and typically remains revocable after one spouse passes, if joint |
| The owner keeps full control | Yes | Yes | Usually, through the trust terms |
| Filing requirement | Recorded with the county before death | Recorded with the county | Deed transferring property to the trust must be recorded |
| Medicaid estate recovery | Yes | Yes | Depends on the trust structure and planning goals |
How a TODD Helps You Avoid Probate
The court process of probate transfers property from a deceased person to their heirs. The Texas version is faster than most states, but it still takes months, costs money, and creates a public record of the estate.
According to a 2025 Pew Research Center survey of 8,750 U.S. adults, only about half of Americans have completed any planning. The rest leave the question of what happens to their home and property to a state law they never chose.
What Avoid Probate Means in Practice
A transfer-on-death deed bypasses the court for one specific asset: the home. The beneficiary takes title directly through the county records. No court filing is needed for that property.
The result is a faster transfer and lower legal fees. Court filings are public, while a recorded TODD shows only the deed itself.
TODD for Married Couples in a Community Property State
Texas is a community property state. Most property acquired during marriage belongs equally to both spouses, including the family home. A TODD has to account for that property ownership structure to work correctly.
Regardless of which spouse’s name is on the deed, if purchased during the marriage it is owned as community property. What comes as a surprise to most couples is that their spouse’s interest does not necessarily pass to the surviving spouse when one passes away. The TODD can rectify this and do so without the need for court involvement.
Beneficiary Deed Structure and the Home
Most Austin homes bought during a marriage are owned by both spouses. Both spouses will typically sign the TODD, naming a beneficiary who takes after the second spouse dies. A surviving spouse keeps full ownership until their own death.
The right property ownership structure depends on family goals and the rest of the plan.
What a TODD Does Not Cover
A transfer-on-death deed handles one thing well: real property in Texas. The deed does not reach other assets, out-of-state property, or claims against the estate. Most new Austin homeowners need a TODD as one piece of a broader plan, not the whole plan.
Bank Account and Other Non-Real-Property Assets
A TODD does not cover:
- A bank account (use a payable-on-death designation or trust planning instead)
- Retirement plans and brokerage accounts (use named beneficiaries with the financial institution)
- Personal property inside the home (covered by a will or through trust planning)
- Mortgages on the home (mortgages follow the property to the new owner)
- Real property in other states (each state has its own deed rules)
Each asset type has its own court-avoidance tool. A complete plan uses several together. Mortgages and outstanding debts continue to attach to the home after the transferor’s death.
Why You Need a Texas Estate Planning Attorney for Your TODD
A transfer-on-death deed looks simple on paper. The real value of a Texas attorney is making sure the deed fits the rest of your plan and will accomplish your specific goals. They get the legal description right and make sure the deed works when the time comes and can identify any potential issues with using this planning technique.
A Texas estate planning attorney handling a TODD typically takes on:
- Drafting the deed with the correct legal description matching the county records
- Confirming property ownership structure for married couples
- Coordinating the TODD with your will, retirement accounts, and other estate planning tools
- Advising on Medicaid and creditor exposure before the deed is recorded
- Updating the deed when life changes, the beneficiary predeceases, or new property is acquired
The right attorney also helps you avoid the small mistakes that void a TODD. A misspelled name, a wrong legal description, or an unsigned notarization may leave your family in court anyway.
Protect Your Austin Home With the Right Plan
The home you just bought is likely the largest asset you will ever own. The transfer-on-death deed makes sure it goes to the person you choose, not to a judge or a creditor’s claim. A small deed, signed and recorded now, saves your family months of court process later.
Our experienced team at Hailey-Petty Law Firm helps Austin homeowners build estate plans that protect what matters. We draft TODDs, review existing deeds, and coordinate the deed with your will, retirement accounts, and broader planning.
If you are a new homeowner in Austin, contact our office today for a confidential consultation. The right deed takes one afternoon and protects your family for life. Your home deserves the same care you put into buying it.
Common Questions About the Transfer on Death Deed in Texas
What is a transfer-on-death deed in Texas?
A transfer-on-death deed is a recorded document that names a beneficiary to receive your home at death. Texas authorized transfer-on-death deeds in 2015 under Chapter 114. The deed bypasses the court and works alongside the rest of your plan.
How much does a TODD cost to file in Texas?
County recording fees in Texas typically run $25 to $50 for a TODD. Attorney drafting fees vary, but a properly prepared deed costs far less than the court process it avoids. Many Texas attorneys include a TODD as part of a broader package with a will and powers of attorney.
Can a TODD have more than one beneficiary?
Yes. A TODD allows naming one or more beneficiaries with an alternate beneficiary if the primary beneficiary fails. Multiple beneficiaries can take title as co-owners though this is typically not recommended because of the potential landmines this creates with co-owners.
Can I revoke or change my TODD?
Yes. You may revoke a TODD at any time during the owner’s lifetime by recording a new deed or a formal revocation with the county. Selling the property also cancels the deed for that home, since you no longer own what the deed transfers.
Does a TODD avoid probate for my home?
Yes, for the home only. Transfer-on-death deeds transfer real property directly to the named beneficiary at death, with no court involvement. Other assets, such as bank accounts and vehicles, pass through their own routes, often via a will.
What happens if my TODD beneficiary fails to survive me?
The TODD fails for that beneficiary. If you named an alternate beneficiary, the alternate takes the title under the same deed. If not, the home passes through your will or under Texas intestacy law. Recording a new transfer on a death deed after a beneficiary fails is the cleanest fix.
Do I need a TODD if I already have a will?
A will alone still requires the court process. A TODD bypasses the court, which often makes transfer-on-death deeds a useful addition to a will rather than a replacement. Most Texas attorneys recommend pairing the two so the home avoids court and the will handles everything else.
What will my beneficiary of the home need to do after I pass away?
They will need an Affidavit of Death signaling that you have passed away so that the TODD is “triggered.” That is what transfers ownership to the beneficiary. They will then have to update the county appraisal district and clerk so that they can stop any exemptions you had that are no longer valid and apply for their own.