A Transfer on Death Deed (TODD) is a useful tool for Texans planning their estates. These documents simplify estate planning and avoid probate proceedings. If you’re working on your estate plan, it is important to understand how a TODD can be a benefit to you and your loved ones.
What is a TODD?
With a TODD you can help your beneficiaries avoid probate. When the holder of a TODD dies, their property goes directly to the beneficiary without the long and costly probate process. At any time before their demise, the property owner can amend or revoke the deed and they maintain full control over the property during their lifetime. They’re also free to sell or mortgage it.
How to create a TODD
Creating a TODD involves several steps to ensure it is valid:
- Complete the Texas TODD form including the property description and beneficiary information.
- Sign and notarize the deed with a registered notary.
- File the completed deed with the applicable county clerk’s office to ensure the deed is legally sound.
Benefits of using a TODD
A TODD offers several benefits for estate planning in Texas. This cost-effective alternative to probate saves time and money for beneficiaries. Transferring property with a TODD means that your beneficiaries will not miss time from work to appear in probate court and face other inconveniences..
Simplifying estate planning
A Transfer on Death Deed is a great estate planning tool to simplify the process for beneficiaries after your passing. The bereaved don’t want to spend time tied up in probate hearings and other legal proceedings. Using a well-crafted TODD can save your loved ones from further expense and stress during their time of loss.