Pass Your Property Without the Probate Hassle
If you own real estate and want to make sure it goes to the right people without tying your family up in probate court, a Transfer on Death Deed might be exactly what you need. It's one of the most straightforward ways to transfer property after you're gone.
We help families and individuals across El Paso, Texas and New Mexico use Transfer on Death Deeds to simplify inheritance and avoid unnecessary delays and expenses.
What You Need to Know
A Transfer on Death Deed lets you name who will receive your Texas real estate when you die, and that property usually passes outside probate if the deed is properly prepared and recorded before death. While you are alive, you keep full control of the property, including living in it, selling it, refinancing it, or revoking or changing the Transfer of Death Deed, and the beneficiary has no ownership rights until after you pass away.
After death, the beneficiary generally completes the transfer by recording an affidavit of death and related documents in the county real property records, which can avoid a court probate process for that property, though other assets may still require probate.
Why Families Use Them
Transfer on Death Deeds are popular because they're affordable and get the job done. They work well if you want to leave your home to your kids or spouse without complicating things. They're also useful for rental properties or investment real estate that you want transferred cleanly.
A lot of our El Paso clients use them when they don't need a full trust but still want to avoid probate and keep their affairs private. It's a practical middle ground.
Naming More Than One Person
You can name multiple beneficiaries and specify how the property gets divided between them. You can also name backup beneficiaries in case your first choice doesn't survive you. This flexibility makes Transfer on Death Deeds useful for families with several children or blended family situations where you want to be clear about who gets what.
What Happens to Mortgages and Debts
Here's something important to understand: all valid liens, mortgages, and judgments stay with the property. If there's still a mortgage when you pass away, your beneficiaries inherit that debt along with the house. Creditors can still make claims against the property too.
Also, some mortgages have "due on sale" clauses that could potentially be triggered by a Transfer on Death Deed. If you have a mortgage, we'll check with your lender to make sure the deed won't cause problems.
Tax Implications for Your Beneficiaries
Your beneficiaries receive the property with what's called a stepped-up tax basis. That means the property value is adjusted to its fair market value on the date of your death. If they decide to sell the property later, this can significantly reduce their capital gains taxes. That's a real advantage compared to gifting property while you're alive.
The Medicaid Question
Because Transfer on Death Deeds avoid probate, they may help protect property from Medicaid estate recovery under current Texas rules. However, the Texas Health and Human Services Commission might still be able to file claims against property transferred through a Transfer on Death Deed to recover Medicaid benefits.
This is an evolving area of law. If you've received or might need Medicaid benefits for long term care, we need to talk through your specific situation. A Lady Bird Deed might be a better option in those cases.
Transfer on Death Deed vs. Lady Bird Deed
Both tools avoid probate and both let you keep full control while you're alive. The main differences come down to Medicaid planning and flexibility during incapacity.
Unlike a Transfer on Death Deed, a Lady Bird Deed can be modified by someone acting under your power of attorney if you become incapacitated. With a Transfer on Death Deed, only you can change it while you're alive and mentally competent.
For Medicaid planning, Lady Bird Deeds generally offer more protection. But for straightforward property transfers without Medicaid concerns, Transfer on Death Deeds work just fine and cost less to set up.
We'll help you figure out which tool makes sense for your situation.
What a Transfer on Death Deed Can and Can't Do
A Transfer on Death Deed only covers real property like land, homes, buildings, and mineral rights. It can't transfer personal property like furniture, jewelry, or clothing. And it only applies to property in Texas. If you own real estate in another state, you'll need to look at that state's laws.
More importantly, a Transfer on Death Deed isn't a complete estate plan by itself. You still need a Will or Trust to cover everything else you own. You also need a Power of Attorney for finances, a Medical Power of Attorney, and an Advance Directive.
We make sure all of these documents work together and don't contradict each other.
Common Problems We Help You Avoid
Besides failing to record the deed, people run into trouble when their estate planning documents contradict each other. Maybe the Transfer on Death Deed says one thing but the Will says something different. That creates confusion and potential family disputes.
Title issues can also crop up if the legal description isn't correct or if there are existing liens that weren't addressed. And sometimes beneficiary structures don't account for what happens if someone dies before you do or if relationships change.
Working with an attorney helps you sidestep these problems before they become costly headaches for your family.
How We Work With You
We start by talking through what you're trying to accomplish and looking at the details of your property. We explain your options, including any tax implications or issues with existing mortgages. Then we prepare a customized Transfer on Death Deed that fits your situation.
Serving the Borderland
We work with families throughout El Paso County, Las Cruces, Doña Ana County, and the surrounding area. We understand the local property laws, probate procedures, and the unique challenges families face in our region.
Ready to Get Started?
A Transfer on Death Deed can be a smart, cost-effective way to make sure your property ends up in the right hands without putting your family through probate.