There is a new law in Texas which is a tremendous benefit to low-and moderate-income people. It is called the Transfer on Death Deed. This Deed allows for the transfer of your home or land to someone, upon your death, without having to go through the very expensive process of a court proceeding (Probate Court). A sample of this Deed can be found here.
Another big advantage is that it does not have any effect on your property rights since it is only effective upon your death. You can still use your property as collateral, sell your property, mortgage your property, etc. One disadvantage, however, is that the new owner will have to deal with any creditors claims (if any) against the property because such claims do not go away upon the transfer.
This Deed must be recorded in the deed records in your county records office where the property is located and the person who is getting the land or home must outlive the property owner by at least 120 hours. For example, if the property owner and the person getting the property die at the same time, the person’s heirs will not be entitled to anything.
It is very important to note that this Deed does not replace a Will. If you transfer your home or land using this Deed, you still need a Will to handle how your other property, including your personal property, gets distributed. A Will will not revoke or supersede this Deed.
Learn more about the Importance of Having a Will.
If you are looking for low cost, flat-rate Wills or Estate Planning services, I’d be happy to assist you.