How to Avoid Probate: Transfer on Death Deeds; Pay on Death Accounts; Joint Accounts with Right of Survivorship 1 Dorcas “Dori” Grubaugh Adams, Lynch & Loftin, P.C

Transfer on Death Deeds Chapter 114 Texas Estates Code – Texas Real Property Transfer on Death Act Effective September 1, 2015 A Deed transferring ownership to one or more beneficiaries at the time of the transferor’s death. 2

Key Notes on the TOD Deed A TOD Deed is revocable regardless of whether the deed or any other instrument says it is not revocable. A TOD Deed may not be created through use of a power of attorney. A TOD Deed must be recorded in the county property records where the property is located before the transferor’s death to be valid. 3

Key Notes on the TOD Deed Property can still be sold, mortgaged, or otherwise transferred during lifetime. If property is sold during transferor’s lifetime, then the TOD Deed is invalid. Transferor can still qualify for the homestead exemption. Property will still be subject to creditor’s claims, liens, and mortgages existing at time of transferor’s death. Creditors have 2 years after the death of transferor to make claims. No warranty under this type of deed. Some uncertainty on Title Companies’ treatment of this type of deed. 4

Texas Statutory Form REVOCABLE TRANSFER ON DEATH DEED NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. IMPORTANT NOTICE TO OWNER: You should carefully read all the information included in the instructions to this form. You may want to consult a lawyer before using this form. MUST RECORD DEED: Before your death, this deed must be recorded with the county clerk where the property is located, or it will not be effective. MARRIED PERSONS: If you are married and want your spouse to own the property on your death, you must name your spouse as the primary beneficiary. If your spouse does not survive you, the property will transfer to any listed alternate beneficiary or beneficiaries on your death. 5

1. Owner (Transferor) Making this Deed: ___________________________ ____________________ Printed name Mailing address 2. Legal Description of the Property: ___________________________________________________ 3. Address of the Property (if any) (include county): ___________________________________________________ 4. Primary Beneficiary (Transferee) or Beneficiaries (Transferees) I designate the following beneficiary or beneficiaries, if the beneficiary survives me: ___________________________ ____________________ Printed name Mailing address 5. Alternate Beneficiary or Beneficiaries (Optional) If no primary beneficiary survives me, I designate the following alternate beneficiary or beneficiaries: ___________________________ ____________________ Printed name Mailing address 6

6. Transfer on Death At my death, I grant and convey to the primary beneficiary or beneficiaries my interest in the property, to have and hold forever. If at my death I am not survived by any primary beneficiary, I grant and convey to the alternate beneficiary or beneficiaries, if designated, my interest in the property, to have and hold forever. If the primary and alternate beneficiaries do not survive me, this transfer on death deed shall be deemed canceled by me. 7. Printed Name and Signature of Owner Making this Deed: ___________________________ ____________________ Printed Name Date ___________________________ Signature 7

BELOW LINE FOR NOTARY ONLY Acknowledgment STATE OF ____________________ COUNTY OF ___________________ This instrument was acknowledged before me on the ______ day of ______________, 20____, by ___________________. Notary Public, State of After recording, return to: (insert name and mailing address) ________________________________ ________________________________ 8

Revocation (Cancellation) of TOD Deed You can revoke a TOD Deed by: – Drafting another Transfer on Death Deed giving the property at your death to a different beneficiary and specifically revoking the prior TOD Deed – Drafting an Instrument of Revocation (also called Cancellation) – The revocation must be recorded BEFORE the transferor’s death to be effective. 9

Cancellation of TOD Deed (Statutory Form) CANCELLATION OF TRANSFER ON DEATH DEED IMPORTANT NOTICE TO OWNER: You should carefully read all the information included in the instructions to this form. You may want to consult a lawyer before using this form. MUST RECORD FORM: Before your death, this cancellation form must be recorded with the county clerk where the property is located, or it will not be effective. This cancellation is effective only as to the interests in the property of owners who sign this cancellation form. 1. Owner (Transferor) Making this Cancellation: ______________________ ________________________ Printed name Mailing address 2. Legal Description of the Property: ______________________________________________________ 3. Address of the Property (if any) (include county): ______________________________________________________ 4. Cancellation I cancel all my previous transfers of this property by transfer on death deed. 5. Printed Name and Signature of Owner (Transferor) Making this Cancellation: _________________________ ________________________ Printed Name Date _________________________ Signature 10

BELOW LINE FOR NOTARY ONLY ______________________________________________________________ Acknowledgment STATE OF __________________ COUNTY OF _________________ This instrument was acknowledged before me on the ___ day of __________, 20______, by ____________________________. _______________________________ Notary Public, State of ________ After recording, return to: (insert name and mailing address) _________________________________ _________________________________ 11

Additional Forms Available at 12

Pay on Death Accounts Set up through your bank / credit union. Your bank will have the paperwork you need to complete. Just tell them you want a Pay on Death or POD Account. Checking / Savings / Money Market / CDs and U.S. Savings Bonds can all be set up as POD Accounts. You designate the beneficiary(ies) you want to have the money in that account when you die. 13

Pay on Death Accounts When you die, the designated beneficiary will show the Bank your death certificate, and may have to sign some other paperwork required by the Bank. A POD beneficiary should have access to the money immediately after proving you have died, there is no probate process required. 14

Joint Account with Right of Survivorship Two or more people on one account. Each person has equal rights to deposit and withdraw from the account. If one person dies, the remaining person gets all the money and still has access to the funds. Warning: be sure you don’t set up accounts contrary to intent in your Will (if you have a Will) 15