Guiding You
To The Other Side Of Family Law Matters
  1. Home
  2.  » 
  3. Estate Planning
  4.  » Things to know regarding Revocable Transfer on Death Deed

Things to know regarding Revocable Transfer on Death Deed

On Behalf of | Feb 24, 2024 | Estate Planning |

When a Texas estate owner wants to give a property inheritance without it having to pass through probate, there are several types of planning tools that can help accomplish the goal. Most people automatically think of a last will and testament as the means to pass assets or property to beneficiaries. However, there are other valuable estate planning tools as well, such as a Revocable Transfer on Death Deed (RTDD). If you want your loved ones to be able to avoid probate, this document might be the key.

You must adhere to state estate planning laws if you wish to incorporate an RTDD into your estate plan. This helps to ensure the validity of your documents and makes them legally enforceable. Regarding an RTDD, you’ll want to make sure to address several issues in detail.

An RTDD may not be valid if these elements do not exist

To ensure validity of an RTDD, remember to check each issue shown in the following list:

  • Your name (as the grantor) listed as the property owner.
  • You have listed the names of the beneficiaries you wish to inherit the property.
  • You have included a legal description of the property.
  • You’ve added in writing that the transfer of ownership of the property is only to take place upon your death.

It’s always best to ask a Notary Public to witness your signature. After you have notarized the document, you must file it at the county clerk’s office. If you do not carry out each of these tasks, then your RTDD will not be valid.

Transfer on Death Deeds are revocable

An RTDD is a revocable document. This means that you can change its instructions at any time, provided you are of sound mind when you sign the update. In other words, if you wish to add or remove a beneficiary, you can do so. Another benefit to using an RTDD to transfer property is that the beneficiary’s creditors cannot place a lien against the property until it becomes effective, which occurs when you die.

Executing an RTDD is typically a less expensive estate planning tool than initiating a trust or a last will and testament. It is also less time consuming, especially if you wish to transfer property that you own in another state. In Texas, you may transfer property through an RTDD even if you still owe a mortgage. However, you’ll want to make sure that you continue to make mortgage payments on time throughout your life and that the beneficiary understands that he or she will become responsible for the debt when the RTDD takes effect.