On September 1, 2015 a new Texas state law allows real property owners (not personal property) to record a “Transfer on Death ” naming a to own that real property after they die. With a properly recorded Transfer on Death Deed, no is needed to transfer the real property.
The deed must be signed, notarized and recorded in the county where the property is located. It must also contain the legal description of the property and the name and address of one or more of the beneficiaries.
Whether you have a will or not, your property will still have to go through the probate court system. A Transfer on Death Deed conveys property outside of probate. Not having to go through probate allows you to avoid incurring court costs and administrative costs to deed the property to your beneficiary. It also excludes the real property from Medicaid estate recovery.
If you are considering establishing a transfer on death deed you should consult your financial planner, CPA, or attorney.