fbpx

TEXAS TRANSFER ON DEATH DEED ACT SIGNED BY GOVERNOR

contract-signingOn June 17, 2015, Governor Abbott approved the bill authorizing a revocable deed on the death of the transferor. The law becomes effective September 1, 2015. Similar to bank accounts that are “paid on death”, this law allows the transfer of real estate on the death of the transferor without passing through probate. The Transfer on Death Deed is revoked if there is a subsequent transfer of death deed or if there is a subsequent instrument of revocation filed and recorded in the county clerk’s office where the property is located. A will may not revoke or supersede a transfer on death deed. If a marriage between the transferor and the designated beneficiary is dissolved, then the transfer on death deed is revoked.

A transfer on death deed made by joint owners with right of survivorship is revoked only if all joint owners revoke. However if one of the joint owners dies, the survivor may revoke the deed.

This type of deed does not affect the transferor’s (a) homestead rights, (b) the right to transfer or encumber the property or (c) ad valorem tax exemptions.  This type of deed doesn’t disqualify the transferor’s or designated beneficiary’s eligibility for public assistance (although similar, this deed is not the same as a Ladybird Deed) or affect any rights of a creditor of the transferor. It also does not trigger a “due on sale” clause in a deed of trust.

For more information on Death Deed Act and avoiding Probate please call our Dallas office at (214)-720-0102.

No Comments

Sorry, the comment form is closed at this time.