A Transfer on Death Deed (TODD) is a simple, inexpensive way to transfer real estate to someone else upon your death. It does not involve going through probate court, which can be a lengthy and costly process. It works similarly to a life insurance policy or a payable on death account at a bank, because the real estate passes to your beneficiary upon your death outside the probate system.I can't tell you how many times the heirs I've worked with did not know what to do when their loved ones passed away. In many instances they did NOT PROBATE the will.
That means to transfer the title of the property to the new owner, we had to file what's called an AOH (Affidavit of Heirship). In a couple of instances it was not easy for them to find people who wanted to attest to what the affidavit asks. To avoid this complication I want to ask you to consider an inexpensive way to plan ahead if it fits your needs to transfer property upon death.
A TODD (Transfer Upon Death Deed) transfers real estate upon a persons passing. It is automatic and inexpensive. The property goes to the beneficiary and avoids the need for probate and/or an AOH (Affadavit of Heirship). The TODD must be recorded in order for it to be official.The TODD circumvents the costly admin fees to pass the deed to your beneficiary. Another perk is that the TODD means it excludes property from Medicaid estate recovery under the current law according to TexasLawhelp.com.
Further a TODD does not replace a will. Please do consult an attorney for a comprehensive estate plan and see if including a TODD is applicable for you and your loved ones.