Transfer on Death Deed in Texas: How TODDs Work & Pitfalls

Losing a parent or spouse is hard enough without sorting through deeds, court orders, and title questions a few weeks later. If your loved one signed a transfer on death deed (TODD) before passing, the good news is that the house may transfer to you without opening a full probate case — but you still have a handful of steps to handle before you can sell or refinance.

What Is a Transfer on Death Deed in Texas?

A transfer on death deed is a recorded document that names a beneficiary to receive Texas real estate the moment the owner dies. The owner keeps full control during life — they can sell, mortgage, or revoke the deed at any time — and the property passes to the named beneficiary outside probate.

TODDs are authorized by the Texas Real Property Transfer on Death Act, Texas Estates Code §§ 114.051–114.151. The law took effect in 2015 and was updated in 2019 to clarify recording and revocation rules.

The deed is sometimes called a beneficiary deed. Both terms mean the same thing in Texas.

Why People Use a TODD

A TODD is a popular tool because it does three things at once:

• Keeps the home out of probate
• Preserves the owner’s full control during life
• Costs much less than a living trust

For a homeowner whose main asset is a single house, a TODD often replaces the need for a trust entirely. The beneficiary inherits the property directly, and the title transfer is documented through the county deed records — not a courtroom.

TODD Requirements Under Texas Law

To be valid, a Texas TODD must:

1. Identify the owner and the beneficiary by name
2. Describe the property with the same legal description used in the current deed
3. State that the transfer takes effect at the owner’s death
4. Be signed by the owner in front of a notary
5. Be recorded in the county deed records where the property sits — before the owner dies

The recording deadline is the part that trips families up. A TODD signed but never recorded is not effective. If the owner signs the deed but the document sits in a drawer until after death, the property goes through probate like any other asset.

How to Revoke a TODD

The owner can revoke a TODD any time before death. Texas allows three methods:

A will cannot revoke a TODD. This surprises a lot of families. If your father signed a TODD in 2018 leaving the house to your sister and later wrote a will leaving “all my property” to you, the TODD still controls the house. The will only governs assets the TODD did not transfer.

What Happens at the Owner’s Death

When the owner dies, the property passes automatically to the named beneficiary — but title companies and lenders need paperwork before they will treat the beneficiary as the new owner. You typically need to:

1. Order a certified death certificate from Texas Vital Statistics
2. File an Affidavit of Death in the county deed records, attaching the death certificate
3. Confirm the recorded TODD is still in place and was not revoked
4. Update tax records with the county appraisal district

Once those filings are recorded, the beneficiary owns the home with insurable title and can list it, refinance it, or move in.

Selling the Property After a TODD

Selling after a TODD is one of the smoother paths to a closed transaction. A title company will usually need:

• A recorded copy of the original TODD
• An Affidavit of Death recorded after the owner passed
• A certified death certificate
• ID for the beneficiary signing the new deed

The beneficiary signs the warranty deed at closing as the current owner. No executor, no probate court order, no creditor notice period.

If the property had a mortgage, the loan is paid off at closing from the sale proceeds, just like a normal sale. If there are multiple beneficiaries named on the TODD, all of them must sign the deed — and all of them must agree on the sale price and terms.

If you inherited a Texas house through a TODD and you’re trying to figure out the next move, that’s exactly what our free consultation covers. We work with beneficiaries to confirm title is clear, line up a realistic price, and connect with buyers who can close fast. Reach out through our contact form and we’ll respond within one business day.

Common TODD Pitfalls

TODDs are simple in theory, but a few patterns cause real problems for beneficiaries:

1. The deed was signed but never recorded

This is the single most common issue. The signed TODD sits in a safe-deposit box or filing cabinet, and the family finds it after the funeral. An unrecorded TODD is not effective — the house goes through probate.

2. Joint tenants with right of survivorship

If the deceased owned the home with a spouse as joint tenants with right of survivorship, the survivorship rule takes priority. The home passes to the surviving co-owner first, and the TODD never takes effect. The TODD only matters if both joint owners die at the same time or if the survivor never re-titled the home.

3. The mortgage’s due-on-sale clause

Most home loans contain a due-on-sale clause that lets the lender call the loan when ownership changes. For a TODD beneficiary who is a relative of the deceased, the Garn-St. Germain Depository Institutions Act blocks the lender from triggering that clause. For a non-relative beneficiary — say, a long-time friend or a stepchild who was never legally adopted — the lender may demand payoff. Plan ahead if your TODD beneficiary is not immediate family.

4. Medicaid estate recovery

If the owner received long-term Medicaid benefits, the Texas Medicaid Estate Recovery Program can place a claim against the estate after death. TODDs do not always shield real estate from this claim. Families inheriting through a TODD from a Medicaid recipient should expect the state to file a claim before title clears.

5. The beneficiary died before the owner

If the named TODD beneficiary dies before the owner and no contingent beneficiary is listed, the TODD lapses. The home then passes through the owner’s will — or, if there is no will, through Texas intestate succession.

6. Disputes among heirs

A TODD that leaves the home to one child can create real friction with the other children, who may believe the parent intended an equal split. TODDs are private documents until recorded, so siblings often learn the contents only after the funeral. Talk it through before signing, not after.

TODD vs. Muniment of Title vs. Lady Bird Deed

Texas families have three main tools for transferring a home outside full probate. Each works in a different situation.

If the owner did not record a TODD or Lady Bird Deed before death and there is a valid will, muniment of title is usually the fastest path. If there is no will and no recorded deed, the family typically needs an Affidavit of Heirship or full probate.

When a TODD Is the Right Choice

A TODD makes the most sense when:

• The home is the owner’s main asset
• There is one clear, agreed-upon beneficiary
• The owner wants to keep full control during life
• The family wants to avoid probate court entirely
• The beneficiary is a relative (to avoid due-on-sale issues)

It is less ideal when there are multiple intended beneficiaries, blended-family dynamics, Medicaid involvement, or a non-relative recipient. Those cases often call for a will plus muniment of title, or a small family trust.

For more on probate-avoidance strategies that go beyond TODDs, see our guide on avoiding probate in Texas and our Travis County probate guide for local recording details.

Bottom Line

A Texas transfer on death deed is a strong, low-cost way to pass a home outside probate — but only if it is recorded before death, kept current, and paired with the right paperwork after the owner passes. If you are a beneficiary trying to figure out where you stand, gather the recorded TODD, the death certificate, and any mortgage statements, then talk through the sale options before you list.