Three Misconceptions About Transfer on Death Deeds in Texas 

 Posted on February 12, 2024 in Estate Planning

Transfer on Death Deeds (TODD) have gained popularity as an efficient method for transferring property in Texas. However, several misconceptions surrounding TODD can lead to confusion and misunderstanding. If you are interested in learning more about whether a TODD could benefit your estate plan, consult with an experienced Texas estate planning attorney. They will ensure you are afforded the knowledge necessary to make the most informed estate planning decision possible

Misconception #1 – TODDs are Irrevocable 

One common misconception is that once a TODD is executed, it cannot be revoked or changed. However, TODDs are entirely revocable in Texas during the property owner’s lifetime. The property owner can modify or rescind the TODD at any time as long as they have the legal capacity to do so. This allows property owners to adapt to changing circumstances or relationships without being locked into a permanent decision.

Misconception #2 – TODDs Replace the Need for a Will

Another misconception is that once you have a TODD in place, it can entirely replace the need for a will. While TODDs can effectively transfer real estate, they do not cover all assets and situations. TODDs only apply to real property and do not address personal property like bank accounts, vehicles, or personal belongings. Additionally, TODDs do not provide for the distribution of property in the event of the property owner’s incapacity. To ensure a comprehensive estate plan, it is advisable to have both a TODD and a will, which can address all assets and provide for contingencies

Misconception #3 – TODDs Protect Property from Creditors

Many people believe that TODDs protect property from the claims of creditors. However, TODDs do not provide any creditor protection. If the property owner has outstanding debts, creditors may still have the ability to make claims against the property. It is important to understand that TODDs primarily focus on the transfer of property upon death and do not shield the property from potential creditor claims

Contact Our Dallas, TX Transfer on Death Deeds Attorney

TODDs can be a valuable estate planning tool, but having accurate information and dispelling common misconceptions is essential. Understanding that TODDs are revocable, do not replace the need for a will, and do not protect property from creditors is crucial for those considering this property transfer method. For astute legal guidance, contact the skilled Dallas, TX transfer on death deeds lawyer with Andrew Dunlap Attorneys, PLLC. Call 972-807-6357 for a private consultation.