A new Texas state law allows real property owners to record a "Transfer on Death Deed" naming a beneficiary to own that real property after they die. Tex. Est. Code Chap. 114. New Mexico has allowed transfer on death deed since 2013. NM Stat. 45-6-405. With a properly recorded Transfer on Death Deed, no probate is needed to transfer the real property after your death. We don’t recommend this legal instrument for everyone.
You might consider a Transfer on Death Deed if you answer “yes” to the following questions:
1.) Do you own your home?
2.) Do you own real estate in addition to your home?
3.) Do you want to avoid probate?
4.) Do you want your estate planning to be simple for you to carry out?
Your situation is probably more complicated if you answer “yes” to any of the following questions:
1.) Do you want your estate planning to be simple for your beneficiaries to carry out?
2.) Do you want to keep the property in the family?
3.) Do you have children from a prior relationship?
4.) Does your spouse have children from a prior relationship?
5.) Are you worried that the assets you have accumulated might be used to enrich a replacement spouse?
6.) Would the beneficiaries of your property be good business partners?
7.) Are you planning for government benefits to pay for your long term assisted or nursing home care?
8.) Are any of your beneficiaries disabled, incapacitated, or receiving any means tested government benefit?
9.) Would your beneficiaries use your financial legacy for positive purposes or negative purposes (unhealthy
addictions to alcohol, drugs, gambling, or pornography)?
10.) Does the value of your family business, retirement fund, savings, and real estate equal or exceed $5.5 million?
***NOTHING IN THIS ARTICLE IS TO BE CONSIDERED AS THE RENDERING OF LEGAL ADVICE FOR SPECIFIC CASES, OR CREATING AN ATTORNEY-CLIENT RELATIONSHIP, AND READERS ARE RESPONSIBLE FOR OBTAINING SUCH ADVICE FROM THEIR OWN LEGAL COUNSEL. THIS ARTICLE IS INTENDED FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY, AND NO WARRANTY OR REPRESENTATION IS MADE AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN.***