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Revocable Transfer On Death Deed Texas

 Texas has a law called a revocable transfer on death deed or a beneficiary deed, which names a particular beneficiary who automatically receives ownership of real property after the original owner dies. The beneficiary is named by the property owner before the property owner dies.  It is meant to provide a simple and cheaper transfer of ownership of land to a beneficiary without the involvement of probate court. This means that it is a cheaper option for people that cannot afford the costs involved in the probate process. Remember the property of the deceased goes through probate court and is then passed on to heirs if the deceased had no will or Transfer on Death Deed.

Requirements For Revocable Transfer On Death Deed

The deed has to be in writing and must contain the legal description of the property being passed to the beneficiary. The name(s) and addresses or address of the beneficiary must be included in the deed, and the property owner must sign the deed in the presence of a Notary Public. The property owner must also state that the property will only pass to the beneficiary after the property owner is dead. The final requirement is that the deed must be recorded in the deed records of the county clerk’s office of the county where the property is located when the property owner or grantor is still alive.

Revocable Transfer on Death Deed Vs Will

Revocable Transfer On Death DeedThe main differences between a will and the transfer on death deed is that the will is more detailed about what happens to all property belonging to the property owner after they die. A revocable transfer deed does not show how other property belonging to the grantor should be handled. For example, a revocable transfer on death deed cannot be used to transfer personal property such as furniture, clothing, jewelry, china and more. 

It can only be used to transfer real property such as land, home, buildings, uncut timber, and mineral rights. Fortunately, you can prepare both a will and a revocable transfer on death deed. In fact, you can create a revocable transfer of death deed to pass certain property immediately to heirs to ensure that they are taken care of as the probate process for your will continues. Just make sure they do not contradict each other to avoid confusion for your beneficiaries when they come into effect.

Problems With Revocable Transfer On Death Deed

An experienced estate planning lawyer can help you create a revocable transfer of deed so that you can have an easier time navigating this recent law. The law only came to effect in 2015, which means there is still a lot of confusion. For example, the revised 2019 statute removes the form for the revocable transfer on death deed. Without a form for guidance you can easily make a mistake when creating a deed. Another issue is that a number of title companies do not like revocable transfer on death deeds and may not write title insurance for the transferred property for the two year period after the grantor’s death.

 

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