Transfer on Death Deed

In 2015, the Texas Legislature realized that there is a silver wave of baby-boomers that is about to come crashing down upon the probate courts with great vengence and furious anger such that the courts would never be able to handle the sheer number of probates that are expected in the next 20 years. Though living trusts have been around for decades, they have had mixed results in actually avoiding probate. Something more had to be done.

Therefore, the Legislature passed Senate Bill 462, the Texas Real Property Transfer on Death Act. The purpose of the act was to codify the concept of a deed that would allow a real property owner to name a beneficiary to receive his or her property upon his or her death, without the necessity of probate. In Texas, that deed is called a "Transfer on Death Deed." The Duran Firm will prepare a Transfer on Death Deed as part of your estate plan.

A Transfer on Death Deed is revocable regardless of whether the deed or another instrument contains a contrary provision. A Transfer on Death Deed can be revoked or superceded by a subsequent Transfer on Death Deed that revokes the preceding Transfer on Death Deed or by an instrument of revocation that expressly revokes the Transfer on Death Deed.

During a transferor's life, a transfer on death deed does not:

1. affect an interest or right of the transferor or any other owner, including:
   (A) the right to transfer (sell) or encumber (mortgage) the real property that is the subject of the deed;
   (B) homestead rights in the real property, if applicable; and
   (C) ad valorem tax exemptions, including exemptions for residence homestead, persons 65 years of age or older, persons with disabilities, and veterans;
2. affect an interest or right of a transferee of the real property that is the subject of the deed, even if the transferee has actual or constructive notice of the deed;
3. affect an interest or right of a secured or unsecured creditor or future creditor of the transferor, even if the creditor has actual or constructive notice of the deed;
4. affect the transferor's or designated beneficiary's eligibility for any form of public assistance, subject to applicable federal law;
5. constitute a transfer triggering a "due on sale" or similar clause;
6. invoke statutory real estate notice or disclosure requirements;
7. create a legal or equitable interest in favor of the designated beneficiary; or
8. subject the real property to claims or process of a creditor of the designated beneficiary.."