For most Texans, the family home is the single biggest asset, and the one they most want to pass on smoothly. A transfer on death deed does exactly that. It lets you name who inherits your real estate, keeps the property fully in your control while you are alive, and passes it to your beneficiary automatically at death, with no probate.
Texas adopted the transfer on death deed in 2015, and the rules live in Chapter 114 of the Estates Code.1 This guide explains how it works, how to create and record one, how to revoke it, and how it stacks up against a living trust.
- Names a beneficiary who receives your real estate when you die.
- Leaves you in full control for life: you can sell, mortgage, or change your mind anytime.
- Passes the property outside probate.
- Must be signed, notarized, and recorded before your death to be valid.2
How the deed works
A transfer on death deed looks like an ordinary deed, but it carries an express statement that the transfer happens only at your death.1 Until then, nothing changes: you remain the full owner, you keep the homestead exemption and any tax benefits, and the named beneficiary has no rights and no say. They cannot stop you from selling and cannot claim the property while you live.
Because the beneficiary's interest only springs into being at your death, a transfer on death deed also carries no gift-tax consequence when you sign it, and it does not expose the home to the beneficiary's creditors during your lifetime.
How to create and record one
- Prepare the deed. It must meet the formalities of a recordable Texas deed: in writing, with a legal description of the property, and it must state that the transfer occurs at your death. Texas provides an optional statutory form in the Estates Code.3
- Name your beneficiary clearly. Use full legal names. You can name more than one beneficiary and an alternate in case your first choice dies before you.
- Sign before a notary. Like any deed, it must be acknowledged before a notary public.
- Record it before death. This is the step people miss. The deed must be recorded in the deed records of the county where the property sits, before you die. An unrecorded transfer on death deed is void, no matter how properly it was signed.2
How to revoke it
A transfer on death deed is fully revocable, and you do not need the beneficiary's permission. You can revoke it by recording a new transfer on death deed that changes or cancels the gift, or by recording a separate instrument of revocation, in each case before your death and in the same county records.4 Importantly, you cannot revoke it through your will. A later will that tries to redirect the property does not override a recorded transfer on death deed, so the revocation has to be done by a recorded deed or revocation instrument. Selling the property during your life also defeats the deed, because there is nothing left to pass.
Transfer on death deed vs. living trust
| Feature | Transfer on death deed | Revocable living trust |
|---|---|---|
| What it covers | Real estate only | Any asset you fund into it |
| Cost and effort | Low, a single recorded deed | Higher, drafting plus funding |
| Avoids probate | Yes, for that property | Yes, for funded assets |
| Handles incapacity | No | Yes, successor trustee can act |
| Control during life | Full | Full |
For a single Texas home, a transfer on death deed is often the simpler and cheaper choice. A trust makes more sense when you have several properties, want incapacity planning, or own real estate in more than one state. Our guide on the living trust vs. will in Texas compares them in depth, and how to avoid probate in Texas covers the full toolkit.
Pair it with a will
A transfer on death deed is a precision tool for one asset, not a substitute for a full plan. Everything the deed does not cover, other property, personal belongings, an executor, a guardian for minor children, still needs a will. Use the deed to keep your home out of probate, and a will to handle the rest. To draft yours, see our Texas will template or create your Texas will here.
Sources
- 1Texas Estates Code Chapter 114, Transfer on Death Deed (statutes.capitol.texas.gov)
- 2Texas Estates Code Sec. 114.052, Deed Must Be Recorded Before Death (statutes.capitol.texas.gov)
- 3Texas Estates Code Sec. 114.151, Optional Form of Transfer on Death Deed (statutes.capitol.texas.gov)
- 4Texas Estates Code Sec. 114.057, Revocation by Certain Instruments (statutes.capitol.texas.gov)
Frequently Asked Questions
Does a transfer on death deed avoid probate in Texas? Yes. The property passes directly to your named beneficiary at death, outside probate, as long as the deed was recorded before you died.
Can I change or cancel a transfer on death deed? Yes, anytime while you have capacity. Record a new deed or a revocation instrument. You cannot revoke it through your will.
Does the beneficiary get any rights while I am alive? No. You keep full control and can sell or mortgage the property. The beneficiary gets nothing until your death.
Do I still need a will if I have a transfer on death deed? Yes. The deed only covers the real estate named in it. A will handles everything else and names an executor and guardian.
About the author
Max Kuch
Max Kuch writes about estate planning, wills and inheritance for Texas Will Template. He gathers the rules from the Texas statutes and the leading public data, then explains them in plain, accessible language so anyone can put their wishes in writing.