{"id":12694,"date":"2023-03-26T05:00:16","date_gmt":"2023-03-26T10:00:16","guid":{"rendered":"https:\/\/legaltalktexas.hammerle.com\/?p=12694"},"modified":"2025-06-18T13:05:55","modified_gmt":"2025-06-18T18:05:55","slug":"bringing-down-house-opening-the-door-on-transfer-on-death-deed","status":"publish","type":"post","link":"https:\/\/hammerle.com\/legaltalk\/estate-planning\/bringing-down-house-opening-the-door-on-transfer-on-death-deed\/","title":{"rendered":"Bringing Down the House: Opening the Door on the Transfer on Death Deed"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Let\u2019s take a moment and look at a probate avoidance document called the Transfer on Death Deed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose Sally owns a house and wants her good friend Dave to have it when she dies. How does she make that happen?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sally could leave a will that specifically bequeaths the house to Dave. When she dies, the will is admitted to probate and the <\/span><a href=\"https:\/\/hammerle.com\/legaltalk\/probate\/some-executors-find-it-difficult-to-distribute-probate-estates\/\"><span style=\"font-weight: 400;\">executor signs an executor\u2019s deed<\/span><\/a><span style=\"font-weight: 400;\"> that conveys the house to Dave. That is the traditional method.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Or Sally could sign and record a Transfer on Death Deed that <\/span><a href=\"https:\/\/hammerle.com\/legaltalk\/estate-planning\/4-common-mistakes-beneficiary-designations\/\"><span style=\"font-weight: 400;\">designates Dave as the beneficiary.<\/span><\/a><span style=\"font-weight: 400;\"> When she dies, Dave automatically receives the title to the house. He signs an affidavit and records it in the deed records to give public notice that he is now the owner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That last method, the <\/span><a href=\"https:\/\/hammerle.com\/legaltalk\/probate\/what-is-a-transfer-on-death-deed-todd-in-texas\/\"><span style=\"font-weight: 400;\">Transfer on Death Deed<\/span><\/a><span style=\"font-weight: 400;\"> (\u201cTOD deed\u201d), seems mighty attractive, doesn\u2019t it? Simple, less cost, less time, less\u2026 everything. So let\u2019s look at it more closely and see if it is indeed the best solution for Sally and Dave.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Does My Transfer on Death Deed Need to be Documented?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A TOD deed must be in writing. Sally cannot just tell Dave and his friends that he will get the house when she dies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While Sally is living, the TOD deed must be recorded in the deed records in the county where the house is located. If it is not recorded, then it is worthless. Recording the TOD deed after Sally dies does not fix that problem.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sally can revoke the TOD deed at any time. The revocation must be in writing and recorded before she dies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sally can also revoke the TOD deed by simply conveying the house during her lifetime to someone else, if that deed is also recorded before Sally dies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If Sally doesn\u2019t revoke it, then what does the TOD deed give Dave once she dies? The house, together with all its conveyances, encumbrances, assignments, contracts, mortgages, liens, other interests, termites, and skunks. He gets not an iota more or less than what Sally had.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What About The Exceptions to Transfer on Death Deeds?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Except \u2013 and this is a big except- for that pesky warranty of title and <\/span><a href=\"https:\/\/hammerle.com\/legaltalk\/probate\/the-art-of-the-claim-arduous-probate-process-unfriendly-for-creditors\/\"><span style=\"font-weight: 400;\">creditor\u2019s claims<\/span><\/a><span style=\"font-weight: 400;\">. A TOD deed goes without a covenant of warranty of title. Dave is not guaranteed that he has a good title to the house.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The other big exception is creditor\u2019s claims. If Sally\u2019s <\/span><a href=\"https:\/\/hammerle.com\/legaltalk\/wills-trusts\/probate-and-its-process-explained\/\"><span style=\"font-weight: 400;\">probate estate<\/span><\/a><span style=\"font-weight: 400;\"> is not big enough to cover the expenses of administration, claims against her estate, estate tax, and any family allowance, then the executor of her estate can seize the house she left to Dave and sell it so that those liabilities can be paid.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What? The house that Dave received through a TOD deed isn\u2019t protected? Not one little bit. After receiving a demand for payment, the executor has 90 days to act. After that, the door flings open for a whole slew of other people to go after the house: creditors, distributees of the estate, Sally\u2019s surviving spouse, a guardian on behalf of Sally\u2019s minor or incapacitated children, or any taxing authority.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How long must Dave look over his shoulder? For 2 long years from the date of Sally\u2019s death. That claw-back period could make it difficult for Dave to sell or lease the house for those 2 years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our Sally and Dave scenario is a simple one. The story becomes more complex if Sally is married or co-owns the house. We also have not discussed alternative ways to leave the house to Dave, such as a trust or <\/span><a href=\"https:\/\/hammerle.com\/legaltalk\/estate-planning\/lady-bird-deed-a-handy-tool-for-estate-planning\/\"><span style=\"font-weight: 400;\">ladybird deed<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A Transfer on Death Deed is a tool. It may not be the right one for you.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Hammerle Morris Can Help With Your Estate Planning Needs\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Looking for estate planning assistance for you or your family? <\/span><a href=\"https:\/\/hammerle.com\/lewisville-attorney\/#form\"><span style=\"font-weight: 400;\">Schedule a consultation<\/span><\/a><span style=\"font-weight: 400;\"> with one of the experienced <\/span><a href=\"https:\/\/hammerle.com\/lawyers\/\"><span style=\"font-weight: 400;\">attorneys<\/span><\/a><span style=\"font-weight: 400;\"> at Hammerle Morris to discuss your options.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Attorney <\/span><\/i><a href=\"https:\/\/hammerle.com\/lawyers\/virginia-hammerle\/\"><i><span style=\"font-weight: 400;\">Virginia Hammerle<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> has practiced litigation and estate planning for 40 years. She is founder and managing attorney for <\/span><\/i><a href=\"https:\/\/hammerle.com\/\"><i><span style=\"font-weight: 400;\">Hammerle Morris Law Firm<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">. <\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Let\u2019s take a moment and look at a probate avoidance document called the Transfer on Death Deed. Suppose Sally owns a house and wants her good friend Dave to have it when she dies. How does she make that happen? Sally could leave a will that specifically bequeaths the house to Dave. When she dies, [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":12695,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1224,1225],"tags":[],"class_list":{"0":"post-12694","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-estate-planning","8":"category-probate"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Opening the Door on the Transfer on Death Deed | Hammerle Morris Law Firm<\/title>\n<meta name=\"description\" content=\"Transferring assets after death doesn&#039;t have to be tricky! 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