New Texas Estate Planning Tool: The Transfer on Death (“TOD”) Deed
SB 462, was enacted during the most recent session of the Texas legislature and has been codified in Chapter 114 of the Texas Estates Code.
The Texas TOD deed is merely an extension of the concept of allowing owners of real property to automatically transfer by deed, upon their death, their interest in a property to co-owners of the same property. Most states refer to this concept as holding title to property as “Joint Tenants, with the Right of Survivorship,” or simply as “Joint Tenants.”
The Texas TOD deed extends an owner’s ability to automatically transfer upon the owner’s death an interest in real property to any person; no longer is an owner’s ability to automatically transfer property by deed and upon death limited to transfers to co-owners of the property (e.g., transfers to the surviving joint tenant(s)).
Unlike joint tenants, transferees who are designated to receive title to real property by way of a TOD deed do not have any legal or equitable interest in the subject property prior to the death of the transferor.
A TOD deed may be revoked at any time before the grantor’s death; however, the method for revocation must be one which is set forth in the statute. A TOD deed may not be revoked by an ordinary Will.
For more information on Texas estate planning in general, or on Transfer on Death Deeds in particular, please contact Lapin Law Offices today.