Effective September 1, 2015, Texas will join the growing number of states that allow owners of real estate to transfer property to their heirs outside the probate process by creating a Texas Transfer on Death Deed.
The deed works like a beneficiary designation on a bank account or an insurance policy. It allows you to name a primary and contingent beneficiary who will inherit your real property after you die.
This is good news for many Texans with modest estates whose only probate asset is their home.
Below are a few things you need to know about the Texas Transfer on Death Deed.
The Requirements of an Effective Transfer on Death Deed
To be effective, the deed must:
1. Contain the essential elements and formalities of a recordable deed in Texas;
2. State that the transfer of the Grantor’s interest to the designated beneficiary will not occur until the Grantor’s death; and
3. Be recorded before the Grantor’s death in the deed records in the county clerk’s office of the county where the real property is located.