A few weeks ago, my neighbor knocked on my door. He knows my company, Haystack Land Company, buys land, and he knew my dad had recently passed away. He wanted to pick my brain about how to set up his own property so his kids wouldn’t have to deal with a mess later. Specifically, he asked me about something called a Transfer on Death Deed — a “TODD.”
I’ll be honest: I’d never heard of it.
I buy and sell land for a living. I’ve worked with inherited properties, probate situations, and title issues for years. But this particular tool was new to me. So I did what I always do…I went deep, very deep…too deep. I researched every option available under Texas law, talked to attorneys, read the statutes, and put together this guide so I’d never be caught flat-footed on the question again.
What I found is that Texas gives property owners six common ways to transfer real estate at death. Some skip probate entirely. Some cost a few hundred dollars; others run into the thousands. And if nobody plans at all, the state decides who gets the land, which can turn a family ranch into a legal headache that takes years to untangle.
This guide covers every option, with real cost estimates, timelines, and an honest look at the trade-offs. If you own one tract of vacant land, this will help. If you have a more complicated situation with properties in multiple counties, it will still help.
This guide covers two situations:
- Planning ahead? You own Texas land and want to make sure it transfers smoothly to your heirs. Start with the method comparison below.
- Already inherited land? You need to get title in your name — and you may be considering whether to keep, rent, or sell. Jump to the Inherited Land section, or see our dedicated inherited land in Texas guide for a step-by-step decision tree.
How to Avoid Probate on Texas Real Estate
Five of the six methods below let you transfer property outside of probate entirely, saving your heirs thousands of dollars, months of waiting, and the headache of court proceedings. The sixth method (a will) still requires probate, but Texas offers streamlined options like muniment of title that can wrap up in a single court hearing.
All 6 Methods at a Glance
| Factor | Transfer on Death Deed | Lady Bird Deed | Living Trust | Community Property Survivorship | Joint Tenancy (JTWROS) | Will + Probate |
|---|---|---|---|---|---|---|
| Avoids Probate | Yes | Yes | Yes (if funded) | Yes | Yes | No |
| Typical Cost | $350–$1,100 | $350–$900 | $1,500–$6,000+ | $350–$1,100 | $350–$900 | $1,850–$10,500+ |
| Transfer Timeline | Immediate | Immediate | Days–weeks | Immediate | Immediate* | 4–12+ months |
| Revocable | Yes | Yes | Yes | By agreement | Needs consent | N/A |
| Covers All Assets | Real property only | Real property only | Yes (if funded) | Community property | Titled property | Yes |
| Stepped-Up Basis | Yes | Yes | Yes | Yes (double) | Half only | Yes |
| Incapacity Plan | No | No | Yes | No | No | No |
| MERP Exposure | Generally avoids | Generally avoids | None (revocable) | Generally avoids | Generally avoids | Exposed |
| Married Only? | No | No | No | Yes | No | No |
Now let’s get into each one.
Transfer on Death Deed (TODD)
A Transfer on Death Deed (also called a Texas TOD deed or beneficiary deed) lets you name who gets your property when you die, without going through probate, without setting up a trust, and without giving up any control while you’re alive. Texas adopted this by enacting its version of the Uniform Real Property Transfer on Death Act (a model law from the Uniform Law Commission, 2009) and codified it in Chapter 114 of the Estates Code. TODDs have been available since 2015 and have become one of the go-to tools for straightforward property transfers in the state.
The Mechanics
You sign the TODD, get it notarized, and record it with the county clerk where the property sits. Nothing changes during your lifetime. You keep full ownership. You can sell the property, mortgage it, lease it, or change your mind entirely. The beneficiary gets zero rights until you die.
After your death, the beneficiary files an affidavit of death and a copy of the death certificate with the county clerk, and the property transfers with no court process.
One thing that trips people up: your beneficiary has to survive you by at least 120 hours (five days) under the TODD’s default survival rule (Tex. Estates Code § 114.103). If they don’t, the property passes under your will or by intestacy instead. So naming an alternate beneficiary is a smart move.
What a Valid TODD Requires
Texas is specific here. The deed needs to be titled “Transfer on Death Deed” or use similar language (§ 114.051). It needs the complete legal description from the current deed, not a street address or tax parcel ID. The beneficiary’s full legal name and address go in, along with language stating the transfer happens at death. There’s also a statutory notice warning that the deed is revocable, and that notice has to be in there. The whole thing gets signed, notarized, and recorded before the owner dies. An unrecorded TODD is void.
One more restriction: a power of attorney agent can’t create one (§ 114.054(b)). If the property owner is already incapacitated, a TODD is off the table.
What It Costs and Who Should Draft It
Recording fees run $26 to $60 depending on the county. Attorney fees to prepare and review the deed are typically $300 to $1,000. So all-in, you’re looking at $350 to $1,100.
You can do this yourself, but errors in the legal description or leaving out the statutory notice will invalidate the deed, and you won’t find out until it’s too late. For a document this important, attorney preparation is worth the cost.
Tax Treatment
Beneficiaries receive a stepped-up basis to fair market value at date of death. If your parents bought 100 acres for $50 an acre and it’s worth $3,000 an acre when they pass, your cost basis as the heir is $3,000, not $50. That eliminates decades of capital gains if you decide to sell. There are no transfer taxes in Texas, and the property is included in the owner’s federal estate (relevant only above the $15 million per individual exemption in 2026, made permanent by the One Big Beautiful Bill Act).
The main advantage here is simplicity: it avoids probate, it’s cheap, it’s fully revocable, and beneficiaries get the stepped-up basis. Your homestead exemption and property taxes stay untouched during your lifetime. As a nonprobate transfer, it generally isn’t subject to Texas MERP recovery.
The downsides? It only covers real property (not bank accounts, vehicles, or personal property). If the owner becomes incapacitated, you can’t create or revoke one. Errors in the deed send the property to probate anyway. And some title companies impose a two-year waiting period before insuring TODD-transferred properties, which can slow things down if heirs need to sell quickly.
Lady Bird Deed (Enhanced Life Estate Deed)
Named after the former First Lady (the story goes that President Johnson used one to transfer property to Lady Bird), this is a type of life estate deed with special powers. It has become a favorite among Texas estate planning attorneys, particularly for landowners concerned about Medicaid.
The big difference from a TODD: the Lady Bird deed isn’t governed by any specific Texas statute. It exists under common law, which means there’s no statutory form, no dedicated chapter. An attorney has to draft it from scratch every time, and getting the language wrong could accidentally create a standard (irrevocable) life estate. That would strip you of the ability to sell, mortgage, or revoke the deed while you’re alive.
How It Works
You deed the property to a “remainderman” (your chosen beneficiary) while keeping a life estate with enhanced powers. Those enhanced powers let you sell, mortgage, lease, or revoke the deed during your lifetime without the remainderman’s permission. When you die, the remainderman automatically receives the property. An affidavit of death and death certificate get recorded to clear the title.
Attorney fees for drafting run $300 to $800. Recording is $26 to $60. Total: $350 to $900. Since there’s no statutory form, an attorney absolutely needs to prepare this.
Why Medicaid Planning Attorneys Prefer It
Because the property passes outside probate, it generally isn’t subject to Texas Medicaid Estate Recovery Program (MERP) claims. Creating the deed also isn’t treated as a “transfer” for Medicaid eligibility purposes, so there’s no look-back penalty. Lady Bird deeds have decades of track record in this context, which is why elder law attorneys still reach for them first.
A TODD should provide similar MERP protection (it also passes property outside probate), but it’s only been around since 2015. Less case law, less certainty. For rural landowners whose acreage is their most valuable asset and who may eventually need long-term care, either tool can work, but an elder law attorney should weigh in on which fits best.
On the tax side, beneficiaries get a full stepped-up basis. Homestead and agricultural exemptions continue during the owner’s life. No transfer taxes apply.
The strengths of this deed go beyond Medicaid: the owner keeps complete control, it can be executed through a properly drafted durable power of attorney (unlike a TODD), and title companies are generally more familiar with Lady Bird deeds, which means fewer delays when heirs sell. The tradeoffs are the lack of codification (common law recognition creates some legal uncertainty), the requirement for custom attorney drafting, and the same limitation as a TODD: it only covers real property and doesn’t address incapacity planning.
Revocable Living Trust
A revocable living trust is the most comprehensive option on this list, but it’s also the most expensive and complex to set up. If you own multiple properties, have assets across state lines, or want built-in protection in case you become incapacitated, this is the tool that handles all of it.
You create a trust document naming yourself as trustee and beneficiary during your lifetime. Then you transfer property into the trust by deeding it from yourself individually to yourself as trustee. This step, called “funding,” is where most people drop the ball. If you sign the trust document but never deed the property into it, the property still goes through probate. The trust itself is a container. It only protects what you put inside.
When you die, a successor trustee (whom you named in the trust) distributes the property to your beneficiaries according to the trust terms. No court involvement. No public record. No waiting period.
Attorney fees for trust creation run $1,500 to $3,000 for individuals; $2,000 to $6,000 for couples or complex estates. Each property needs its own deed preparation and recording, which adds $50 to $200. Amendments for life changes cost $200 to $1,000 each. All-in upfront: $1,500 to $6,000+.
During your lifetime, a revocable trust is a “grantor trust,” meaning it’s invisible for tax purposes. Everything reports on your personal return. Beneficiaries receive a stepped-up basis at death, same as with any other method.
Where a trust earns its cost is breadth. It avoids probate for all funded assets, not just real property. It’s completely private (trust terms are never filed with any court). A successor trustee can manage property if you become incapacitated, without needing court-appointed guardianship. And if you own land in multiple states, it avoids ancillary probate in each one.
The catch? Every property you don’t deed into the trust still goes through probate. This is one of the most common and expensive mistakes in estate planning: people pay $3,000 or $5,000 for a trust, then never fund it. The trust sits there doing nothing while the estate goes through exactly the process they were trying to avoid. There’s also ongoing maintenance whenever assets change or life circumstances shift, and a revocable trust provides no Medicaid asset protection (the property is still counted as yours).
For more on how trusts work in the context of selling inherited property, see our guide on how a trust can help you sell inherited land fast.
Community Property Survivorship Agreement (CPSA)
This one’s exclusively for married couples. A CPSA is a written agreement between spouses that their community property (or a specific piece of it, like a ranch) will automatically pass to the surviving spouse when the first spouse dies. No probate required. Both spouses sign the agreement under Tex. Estates Code § 112.051. It needs clear survivorship language, must identify the specific property or state that it covers all community property, and both spouses must have a community property interest. On the first death, ownership vests automatically. An affidavit of death and death certificate clear the title.
Cost-wise, attorney fees run $300 to $1,000. Recording is $26 to $60, though it’s recommended rather than required for the agreement itself (a survivorship deed should be recorded). Total: $350 to $1,100. Simple and cheap.
The Double Step-Up Tax Advantage
This is the part that makes community property states like Texas different. When the first spouse dies, both halves of the community property receive a stepped-up basis to fair market value. Not just the deceased spouse’s half. Both. If a couple bought a ranch in 1990 for $200,000 and it’s worth $1.2 million at the first death, the surviving spouse’s basis jumps to $1.2 million. If they sell shortly after, there’s almost no capital gains tax. That’s a benefit you don’t get with joint tenancy, where only the deceased owner’s half steps up.
The limitations are real, though. A CPSA only works for community property, not separate property (anything owned before the marriage or received by gift or inheritance). It only transfers to the surviving spouse, so you can’t direct property to children or other heirs. And it solves the first death but not the second: the surviving spouse still needs their own plan. One other thing to watch for is that a CPSA generally overrides a will, which can surprise families who assumed the will controlled everything.
Joint Tenancy with Right of Survivorship (JTWROS)
Two or more people hold title together, and when one dies, their share passes automatically to the surviving owner(s). Siblings who co-own inherited land or unmarried partners are the most common users.
The deed has to contain explicit survivorship language. Texas never presumes survivorship in joint ownership (Tex. Estates Code § 112.051). Without that language, co-owners are treated as “tenants in common,” and a deceased owner’s share goes through their estate. Attorney and deed preparation fees run $300 to $800, plus $26 to $60 for recording. Total: $350 to $900.
On the tax side, only the deceased owner’s share gets a stepped-up basis. If two siblings own land 50/50 and one dies, only that sibling’s half steps up. Compared to community property, where both halves step up, that’s a meaningful disadvantage.
The main reason people choose JTWROS is simplicity: it avoids probate and gives the surviving owner immediate ownership (though the survivor will typically need to record an affidavit of death, and a title company may require additional paperwork to insure a resale). But it comes with strings. The property goes to the co-owner at death, with no option to redirect it to children or anyone else. Adding a co-owner counts as a current gift, with potential gift tax implications. And the co-owner has rights during your lifetime, including creditor exposure and partition rights. It’s not revocable without their consent.
Will with Probate
If none of the above tools are in place, the property will go through the Texas probate process. Probate isn’t always the nightmare people imagine. Texas is one of the most probate-friendly states in the country, and attorney marketing that quotes “$5,000 to $13,000” for simple probate is usually describing dependent administration, contested estates, or hourly-billed litigation. For a straightforward estate with a valid will and cooperative heirs (which is most of them), a clean probate runs closer to $2,500 to $5,000 and two to four months of active work. In my own experience, it’s been $2,000 to $3,000 and a couple months.
A few numbers that ground this: the court filing fee is $360 flat across Harris, Dallas, Travis, Tarrant, and Bexar counties (governed by Texas Local Government Code § 118.131). About 80% of Texas probate cases use independent administration, which keeps the court out of the executor’s day-to-day decisions. And the much-cited “5% executor commission” (Tex. Estates Code § 352.002) excludes bank accounts, investment accounts, CDs, money market accounts, and life insurance proceeds from the calculation. For most estates that’s the bulk of the assets, and family-member executors often waive the fee entirely. None of this shows up in the top-ranking cost articles because those are written by attorneys to sell attorney services.
It’s still slower, more expensive, and more public than any of the alternatives above. But it’s not the catastrophe Google wants you to think it is.
Texas offers several forms of probate, and which one applies depends on the circumstances:
Independent Administration
This is the standard path when there’s a will that names an independent executor. The will is filed with the county probate court within four years of death, the court holds a hearing to validate the will and appoint the executor, and then the executor handles everything (paying debts, distributing assets, executing deeds) with minimal court oversight. Independent executors can even sell real property without a separate court order (Tex. Estates Code § 402.002), which is a big reason Texas probate is cheaper than states where every action requires court approval.
Cost: $2,500 to $5,000 for an uncontested estate with a self-proved will; $7,000 to $10,500+ if contested or complex | Timeline: 2 to 4 months of active work; 4 to 8 months total calendar time (most of the extra time is waiting out the statutory creditor notice period, not active court proceedings)
Dependent Administration
Court-supervised probate where the administrator needs a judge’s approval for virtually every major action. This kicks in when there’s no will, the will doesn’t provide for independent administration, or heirs can’t agree.
Cost: $5,500 to $15,500+ | Timeline: 12 to 24 months or longer
Muniment of Title
The fastest and cheapest probate option, and one that’s essentially unique to Texas (Tex. Estates Code Ch. 257). The court admits the will to establish the chain of title. No executor is appointed, no bond is required, no inventory is filed, no creditor notice period applies, and there’s no ongoing court supervision. One hearing, one order, done. It works when there’s a valid will and no unpaid unsecured debts (mortgages secured by real property don’t disqualify you).
Cost: $1,850 to $4,200 total, including the $360 filing fee | Timeline: 4 to 8 weeks start to finish in most counties
Small Estate Affidavit
For intestate estates (no will) where the total value, excluding homestead and exempt property, is $75,000 or less and exceeds known liabilities (the estate must be solvent). This can transfer the decedent’s homestead to a surviving spouse or minor children without full probate administration. It does not apply to non-homestead real property.
Cost: $700 to $2,300 | Timeline: 1 to 2 months
Affidavit of Heirship
Not a probate proceeding, but it comes up constantly when families try to sell inherited land. When a property owner dies without a will and the family never opens probate, an affidavit of heirship, signed by two disinterested witnesses who knew the family, can be recorded in the county deed records to establish the chain of title. It doesn’t transfer ownership the way a court order does, but many title companies will accept it for properties under a certain value or after enough time has passed. We see this a lot with rural land that has passed informally through generations without any formal estate administration.
Texas Intestate Succession: Who Inherits the Land?
When there’s no will, Texas intestate succession law (Estates Code Chapter 201) controls everything. The rules depend on the type of property and the family structure:
Community property: If all of the deceased’s children are also children of the surviving spouse, the surviving spouse inherits all of the deceased’s community property share. If the deceased had children from a prior relationship, the surviving spouse keeps only their own half, and the deceased’s half passes to those children.
Separate real property: The surviving spouse receives a life estate in one-third of the deceased’s separate real property. The remainder (and the other two-thirds outright) passes to the children.
Unmarried owners: The line of inheritance runs to children, then parents, then siblings, then more distant relatives.
The practical problem: when multiple heirs inherit undivided interests in the same tract, you get “fractured ownership.” A voluntary sale requires agreement from all co-owners, but any single heir can file a partition lawsuit (Tex. Prop. Code Ch. 23; Ch. 23A provides additional protections for qualifying heirs’ property under the Uniform Partition of Heirs Property Act). This fractured ownership is one of the biggest sources of clouded title on rural Texas land.
The Four-Year Filing Deadline
Texas has a strict rule: a will must be filed for probate within four years of death (Tex. Estates Code § 256.003). Miss that deadline and the will generally can’t be admitted to full administration. The court won’t issue letters testamentary. There is a narrow exception: if the applicant can prove they were “not in default” for the delay (say the will was hidden or only recently discovered), muniment of title may still be available. But full independent or dependent administration is off the table after four years. The estate may be treated as if the owner died without a will, which can completely change who inherits the property under Texas intestate succession laws.
Weighing Probate
Probate provides a court-supervised, legally definitive transfer. It creates a chain of title that title companies accept without question. It addresses all debts and creditor claims. And it’s required when no other transfer method was set up in advance.
On the other hand, it’s the most expensive method (especially dependent administration), the slowest, and entirely public. The will and estate documents are accessible to anyone. It requires attorney involvement in practice. And it can be contested by disgruntled heirs, which adds cost and delay.
Which Method Is Right for You?
There’s no single best answer. It depends on your situation.
If you own a single tract of Texas land and want something simple, a Transfer on Death Deed or Lady Bird deed is your most cost-effective option. Both avoid probate-based MERP recovery, though Lady Bird deeds have a longer track record in Medicaid planning. Talk to an elder law attorney if Medicaid is a concern.
If you’re married and want your spouse to inherit automatically, a Community Property Survivorship Agreement is the simplest path. But remember: it only covers the first death. The surviving spouse still needs a plan for the second death.
For multiple properties or a complex estate, a revocable living trust gives you the most control and covers all asset types. The higher upfront cost pays for itself by avoiding probate across multiple properties and states.
If you co-own land with a sibling or partner, Joint Tenancy with Right of Survivorship keeps it out of probate, but you’re giving up control over where your share goes. It’s going to the co-owner, full stop.
When no planning was done and a loved one has passed, probate through muniment of title is often the fastest and least expensive route if there’s a will and no unsecured debts. Without a will, independent administration or a small estate affidavit may apply.
Many Texas estate planning attorneys recommend combining methods: a will as a safety net, a TODD or Lady Bird deed for the real property, and beneficiary designations on financial accounts. The goal is to keep as much as possible out of probate while making sure everything is covered.
If you’ve inherited Texas land and the situation feels complicated (multiple heirs, no will, clouded title), know that you have options. We put together a complete guide to inherited land in Texas covering taxes, title clearing, and your sell/keep/rent options. We work with landowners and heirs across Texas who are dealing with exactly these situations. Reach out for a no-obligation conversation about your property.
Common Mistakes to Avoid
These are the practical failure points I kept running into during my research, things that sound small but can completely undo an otherwise solid plan:
- An unrecorded TODD is void under Texas law. The deed has to be on file with the county clerk before the owner dies. This isn’t a technicality: if you sign a TODD but leave it in a filing cabinet, it’s worthless.
- Using a street address or tax ID instead of the full legal description from the current deed will invalidate a TODD or Lady Bird deed. The legal description is the only identifier that matters on a recorded instrument.
- If your named beneficiary doesn’t survive you by 120 hours (for a TODD) or predeceases you, the property falls back into your estate and goes through probate. Always name an alternate.
- Signing a trust document doesn’t accomplish anything by itself. The property has to be deeded into the trust. I mentioned this earlier, but it’s worth repeating because it’s the single most expensive mistake people make: paying thousands for a trust, then never funding it.
- In Texas, joint ownership does not automatically include survivorship rights. Without explicit survivorship language in the deed, a co-owner’s share goes through their estate at death. A lot of people assume the opposite, and it costs them.
What to Do After Inheriting Texas Land
If you’re on the other side of this, where a loved one has passed and you’re trying to figure out what happens next, here’s a practical checklist:
- Obtain multiple certified copies of the death certificate. You’ll need them for almost everything. Order at least 6 to 10 copies.
- Locate the deed, trust, CPSA, TODD, or will. Check the county deed records if you’re not sure what’s been recorded. The county clerk’s office can help.
- Confirm how title is held. This determines which path applies: nonprobate transfer, probate, or something else.
- Record an affidavit of death with the county clerk if the property transferred via TODD, Lady Bird deed, CPSA, or JTWROS. This clears the title.
- Check for liens, unpaid taxes, and potential MERP issues. Outstanding debts don’t disappear when the owner dies.
- Determine whether probate is still needed for any assets that weren’t covered by a nonprobate transfer tool.
- Contact a title company early. Even when probate is avoided, title companies may still require supporting paperwork (affidavits, death certificates, or other curative documents) before they’ll insure a sale. Don’t assume that skipping probate means skipping paperwork.
Heir Property: When Multiple Heirs Inherit the Same Land
This is one of the most common and frustrating situations we see. When a Texas landowner dies without a will and leaves behind multiple heirs, each heir receives an undivided fractional interest in the property. Nobody owns a specific piece of the land; everyone owns a percentage of the whole thing.
The practical consequences are serious:
- You can’t sell without all co-owners agreeing. One holdout can block a sale indefinitely.
- Any single co-owner can force a sale. Under Texas Property Code Chapter 23 (and Chapter 23A for qualifying heirs’ property under the UPHPA), any heir can file a partition lawsuit. The court may order the property sold at auction, often for less than market value.
- Lenders won’t finance heir property. Banks require clear title. Fractional, undivided interests don’t qualify for conventional mortgages or home equity loans.
- Property taxes keep accruing. The county doesn’t care who “really” owns the land. If nobody pays, the property heads toward tax sale, and one heir can end up paying taxes for everyone.
If you’re in this situation, getting ahead of it matters. The longer heir property sits without resolution, the more complicated it gets, especially as each generation adds more heirs to the mix. Your options are: negotiate a buyout among co-owners, file a partition action, or sell the entire property to a buyer who can work with multiple owners (that’s something we do regularly).
What Happens to Property Taxes When You Inherit Texas Land?
Property tax obligations don’t pause when someone dies. The county appraisal district will continue assessing the property, and tax bills will keep arriving. A few things to know:
- Delinquent taxes from the deceased: These become a lien against the property and are the responsibility of whoever inherits. They don’t go away, and if they accumulate long enough, the county can initiate a tax sale.
- Homestead exemption: If the property was the deceased’s homestead, the exemption typically lapses unless the surviving spouse or an heir moves into the property and applies for a new exemption in their name.
- Agricultural exemption (1-d-1): If the land had an ag exemption, the heir must continue the qualifying agricultural use or face a rollback tax on up to five years of the difference between the ag valuation and market value.
- If you’re planning to sell: Clear any delinquent taxes before listing or accepting an offer. A cash buyer like Haystack can often close even when back taxes are owed; we handle it at closing.
Once the title is clear, you’ll need to decide what to do with the property. For a full walkthrough of your options — including the tax picture, what to do with multiple heirs, and whether selling makes sense — see our inherited land in Texas guide. If you’re considering selling, start by understanding what the land is worth. Our land value estimator guide walks through how Texas land is appraised and valued. And if you want to move quickly without listing, here’s our step-by-step guide to selling land fast.
Inherited Texas Land and Not Sure What to Do?
We work with heirs across Texas dealing with multiple owners, unclear title, delinquent taxes, or the desire for a simple exit. We buy land directly, handle title issues, and can close in as little as two weeks.
No realtor fees. No repairs. No hassle.
Get a No-Obligation Offer or call (512) 650-8345
Lady Bird Deed vs. Transfer on Death Deed in Texas
This is the most common comparison question I encountered in my research, and it deserves more than a quick answer. Both the Lady Bird deed and the TODD avoid probate, preserve the stepped-up basis, and let you keep full control during your lifetime. But the practical differences matter:
| Factor | Transfer on Death Deed | Lady Bird Deed |
|---|---|---|
| Source of Law | Statute (Estates Code Ch. 114) | Common law (no statute) |
| Available Since | 2015 | Decades (common law) |
| Standard Form | Yes (statutory form) | No — requires custom drafting |
| POA Can Execute? | No (§ 114.054(b)) | Yes, with proper POA language |
| MERP Protection | Generally avoids (passes outside probate) | Generally avoids (longer track record) |
| Title Insurance | Some companies impose 2-year wait | Generally accepted immediately |
| Drafting Risk | Lower (statutory framework) | Higher (must get enhanced-powers language exactly right) |
| Typical Cost | $350–$1,100 | $350–$900 |
If you’re healthy, mentally competent, and want the simplest route, a TODD is hard to beat. If incapacity planning matters (you want a family member with power of attorney to be able to execute the deed on your behalf), or if you’re working with a Medicaid planning attorney, the Lady Bird deed is the better choice. Either way, both cost a fraction of what probate runs.
Frequently Asked Questions
What is the difference between a Lady Bird Deed and a Transfer on Death Deed in Texas?
Both avoid probate, and both can help protect property from Medicaid estate recovery since they pass property outside of probate. The practical differences come down to drafting and flexibility. TODDs have a standardized statutory framework under Chapter 114 of the Texas Estates Code, which makes them more straightforward. Lady Bird deeds require custom attorney drafting (no statutory form exists), but they have a longer track record in Medicaid planning and can be executed through a durable power of attorney. TODDs cannot. For a detailed side-by-side comparison, see the Lady Bird Deed vs. TODD section above.
How can I avoid probate on Texas real estate?
Five ways: Transfer on Death Deed, Lady Bird Deed, Revocable Living Trust, Community Property Survivorship Agreement (married couples only), and Joint Tenancy with Right of Survivorship. TODDs and Lady Bird deeds are the cheapest at $350 to $1,100. Trusts cost more ($1,500 to $6,000+) but cover all asset types.
How much does probate cost in Texas?
Depends on which type. Muniment of title: $1,850 to $4,200, done in four to eight weeks. Independent administration: $2,500 to $5,000 uncontested (up to $10,500+ if contested), two to four months of active work. Dependent administration (court-supervised): $5,500 to $15,500+, 12 to 24 months. Court filing fees are a flat $360 across Harris, Dallas, Travis, Tarrant, and Bexar counties (Tex. Loc. Gov. Code § 118.131). The big scary numbers online usually describe contested estates or hourly-billed attorney work, not the typical case.
What happens to land in Texas if you die without a will?
Texas intestate succession laws (Estates Code Chapter 201) determine who inherits. For married couples where all children are from the current marriage, the surviving spouse inherits all of the deceased’s community property. If there are children from a prior relationship, the surviving spouse keeps only their own half. For unmarried individuals, land goes to children first, then parents, then siblings. When multiple heirs inherit with no will, the result is often fractured co-ownership that makes the land almost impossible to sell or manage without legal action.
Does a Transfer on Death Deed affect my property taxes or homestead exemption?
No. A TODD doesn’t transfer any ownership during your lifetime. Your property taxes, homestead exemption, and agricultural exemption are all unaffected while you’re alive. After death, the beneficiary may need to apply for their own exemptions.
Do I need a lawyer to create a Transfer on Death Deed in Texas?
Legally, no. But I’d recommend it. The TODD needs the exact legal description, specific statutory notice language, and proper notarization and recording before death. Errors invalidate the deed and send the property to probate. For $300 to $1,000 in attorney fees, the risk of doing it yourself usually isn’t worth the savings.
Can I put Texas land into a revocable living trust?
Yes. You execute and record a deed from yourself individually to yourself as trustee. The critical part is following through: if you never deed the property in, the trust provides zero probate protection. Trusts are particularly useful when you own land in multiple counties or states, because they avoid probate in each jurisdiction.
What is an affidavit of heirship in Texas?
A sworn document signed by two disinterested witnesses who knew the deceased and their family. It identifies the legal heirs when someone dies without a will and gets recorded in county deed records to establish the chain of title. It doesn’t transfer ownership like a court order, but many title companies accept it for inherited property, especially rural land that has passed informally through generations.
What is heir property in Texas?
Real estate inherited by multiple family members (usually through intestate succession) where each heir holds an undivided fractional interest. Any co-owner can file a partition lawsuit to force a court-ordered sale, lenders won’t finance it, and selling requires unanimous agreement. Texas adopted the Uniform Partition of Heirs Property Act (Tex. Prop. Code Ch. 23A) to give heirs additional protections, including appraisal requirements and a right of first refusal before any court-ordered sale.
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Written by Andy Rouse, founder of Haystack Land Company. Andy has bought and sold land across Texas since 2020 and has worked with dozens of families navigating inherited property, probate, and title issues. This guide was last updated April 2026. This is not legal advice — always consult a licensed Texas attorney for your specific situation.