A law recently took effect in Texas allowing property owners to record what is called a revocable transfer on death deed. This type of deed names a particular beneficiary, who will automatically own the property after the original owner dies.

How Does A Revocable Transfer On Death Deed Work?

A revocable transfer on death deed, also known as a beneficiary deed, is a deed that names a certain beneficiary, who will automatically obtain the title to the property upon the death of the original owner. The property will not have to go through probate court.

Does A Transfer On Death Deed Avoid Probate?

Some people refer to this kind of deed as a “poor man’s will.” For very simple estates, it is far easier and much less expensive to transfer real property by a revocable transfer on death deed than it is to set up a trust. Both will avoid probate court for that property.

Does A Transfer On Death Deed Replace A Will?

A revocable transfer on death deed will not erase the need for a will. A will is very important to your overall estate plan. Your will is necessary to outline how additional property, without a transfer on death deed, should be transferred. It also should instruct on what happens if your beneficiary predeceases you.

What Are The Requirements Of The Revocable Transfer On Death Deed?

In order for a beneficiary deed to be valid, you will need to include the legal description of the property. You will also need to list the full names and mailing addresses of your named beneficiaries. It must be signed by the owner of the property – it cannot be signed as an agent with power of attorney for the owner.

When Is A Transfer On Death Deed Effective?

A deed will not be effective unless it is recorded with the County Clerk in the county where the real property in question is located. This must be completed before the death of the grantor occurs.

What Rights Does A Revocable Transfer On Death Deed Give To A Beneficiary Before Death?

The beneficiary of a Revocable Transfer on Death Deed has absolutely no rights to the property until the person dies and then title transfers to that person only if the revocable transfer on death deed has not been revoked.

Can I Name More Than One Beneficiary In A Revocable Transfer On Death Deed?

You can name more than one beneficiary on your revocable transfer on death deed. You can also name an alternate beneficiary, which is highly recommended, in case of the first beneficiary predeceases you.

What Effect Does A Revocable Transfer On Death Deed Have On The Future Sale Of The Property?

A revocable transfer on death deed is absolutely ineffectual until after you have died. It can be revoked before you die for any reason. You can sell your property even if you have filed a Revocable Transfer on Death Deed. A revocable transfer on death deed is revoked by the sale of the property, the recording of a new revocable transfer on death deed that changes the beneficiaries for the same property, or by recording a revocation of the transfer on death deed.

For more information on Revocable Transfer On Death Deed In Texas, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (512) 288-3200 today.