Texas Homeowners: Lady Bird Deed vs. Transfer on Death Deed vs. Will vs. Living Trust. What Happens to Your House When You Die?

Updated: September 2026

You’ve owned your Fort Worth home for years. Maybe you still have a mortgage. Maybe it’s paid off. You know who you want to receive the house someday.

But if something happens to you, what actually happens to the house?

For Texas homeowners, there are several ways real estate may pass after death. Four commonly discussed estate-planning tools are a Lady Bird deed, Transfer on Death Deed (TODD), will, and revocable living trust.

They do not work the same way.

One of the biggest misunderstandings I hear is: “My children are named in my will, so the house will automatically become theirs.”

A will can determine who should receive property, but property passing under a will generally still requires the will to go through the Texas probate process. By contrast, properly structured non-probate transfers such as a Transfer on Death Deed can transfer qualifying real estate outside probate.

This article is for education only. I’m a Fort Worth real estate professional not an attorney, CPA, or estate planner. Your deed, marital status, mortgage, family structure, Medicaid history, other assets, and goals can change which estate-planning strategy makes sense.

Quick Answer: How Can a Texas Home Pass After Death?

A Texas homeowner may use several different estate-planning methods.

A Lady Bird deed, also called an enhanced life estate deed, can allow an owner to retain broad control during life while providing for the property to pass at death.

A Transfer on Death Deed, or TODD, is specifically authorized by Chapter 114 of the Texas Estates Code. It allows an owner to designate one or more beneficiaries who receive the owner's interest at death while giving the beneficiary no ownership interest during the owner's lifetime.

A will states how property should be distributed after death, but it generally does not by itself make the house a non-probate asset.

A revocable living trust can hold title to real estate and potentially keep trust-owned property out of probate, but the property actually has to be transferred or “funded” into the trust for that strategy to work as intended.

There is no single option that is right for every Texas homeowner.

1. What Is a Lady Bird Deed in Texas?

A Lady Bird deed, commonly called an enhanced life estate deed, is a deed-planning technique used in Texas.

The homeowner retains extensive control over the property during life. TexasLawHelp explains that an owner using a Lady Bird deed can generally continue living in the property, sell it, or change or cancel the arrangement during the owner's lifetime. If the owner still owns the property at death, the deed identifies who receives it.

Does a Lady Bird deed avoid probate?

A properly prepared Lady Bird deed may allow the covered real estate to pass outside probate.

That does not mean the homeowner no longer needs an overall estate plan. A house is only one part of an estate.

Does the homeowner keep control?

Generally, yes. This is one of the major differences between an enhanced life estate deed and a traditional life estate deed.

With a traditional life estate deed, the remainder beneficiary receives an interest during the owner's lifetime, which can restrict what the owner can do without the beneficiary's involvement. TexasLawHelp distinguishes a Lady Bird deed because the owner retains substantially more control.

Lady Bird deed advantages

Potential benefits include:

• Retaining broad control of the property during life

• Potentially transferring the house outside probate

• Ability to change the plan during life

• Possible usefulness in certain Medicaid estate-recovery planning situations

Lady Bird deed disadvantages

Potential concerns include:

• Drafting mistakes can create serious title problems.

• It must coordinate correctly with the existing deed and ownership structure.

• Mortgage provisions need to be reviewed.

• Family circumstances can make a seemingly simple transfer complicated.

• TexasLawHelp notes differences between Lady Bird deeds and statutory TODDs involving beneficiaries, powers of attorney, mortgage provisions, and creditor issues.

Unlike a TODD, which is expressly governed by Chapter 114 of the Texas Estates Code, a Lady Bird deed is a deed-planning technique rather than the statutory TODD form.

This is one I would strongly recommend having a qualified Texas estate-planning or real-estate attorney prepare or review.

2. What Is a Transfer on Death Deed in Texas?

A Transfer on Death Deed (TODD) allows a Texas property owner to designate one or more beneficiaries who will receive the owner's real-property interest when the owner dies.

Texas adopted the Texas Real Property Transfer on Death Act, now found in Chapter 114 of the Texas Estates Code.

Does the beneficiary own part of my house while I'm alive?

No.

During the owner's lifetime, a TODD does not create a legal or equitable interest in the beneficiary.

The homeowner can generally continue to sell, mortgage, or otherwise deal with the property. The TODD also does not affect applicable homestead rights or certain property-tax exemptions merely because it has been recorded.

That distinction is important.

Naming your adult child as a TODD beneficiary does not make that child your current co-owner.

What makes a Texas TODD valid?

Under Texas Estates Code §114.055, the TODD must satisfy the essential elements and formalities of a recordable deed, state that the transfer occurs at the owner's death, and be recorded before the owner's death in the deed records of the county where the property is located.

TexasLawHelp further explains that the TODD should include the property's legal description and beneficiary information and must be signed, notarized, and properly recorded.

Signing a TODD and putting it in a drawer is not enough.

Can I change a TODD?

Yes.

Texas law expressly makes TODDs revocable. Revocation generally requires an appropriate later instrument that is acknowledged and recorded before the owner's death. Importantly, a will does not revoke or supersede a TODD.

Can my power of attorney create a TODD for me?

No.

Texas Estates Code §114.054 specifically states that a TODD may not be created through use of a power of attorney.

That is an important difference from some other estate-planning transactions.

What happens to the mortgage or liens?

A TODD does not erase them.

The beneficiary receives the property subject to conveyances, mortgages, liens, encumbrances, contracts, and other interests affecting the property at the owner's death.

In other words:

You inherit the property not magically a debt-free version of the property.

Texas law also provides procedures under which certain estate liabilities can potentially be enforced against TODD property when the probate estate is insufficient. Proceedings under §114.106 generally must be commenced no later than the second anniversary of the transferor's death, subject to statutory exceptions.

That can matter when heirs want to sell the property soon after death, so involving an attorney and title company early can be valuable.

TODD advantages

• Owner retains control during life

• Beneficiary receives no present ownership interest

• Can potentially avoid probate for the covered property

• Can be revoked

• More than one beneficiary may be designated

• Statutory framework exists under Texas law

TODD disadvantages

• Must be correctly drafted and recorded during the owner's lifetime

• Does not eliminate mortgages, liens, or creditor issues

• Joint ownership and community-property situations can complicate the analysis

• Beneficiary and backup-beneficiary choices require care

• A power of attorney cannot create it for the owner

• It addresses real estate not the homeowner's entire estate

3. Does a Texas Will Keep Your House Out of Probate?

Not necessarily.

A will tells the court how you want your probate property distributed and can address much more than a single piece of real estate.

But a will is not the same thing as a non-probate transfer.

TexasLawHelp explains that property passing through a will generally requires probate, while TODDs and properly structured Lady Bird deeds can transfer covered real estate outside probate.

What makes a Texas will valid?

For a typical attested Texas will, Texas Estates Code §251.051 generally requires the will to be in writing, signed by the testator or another person under specified circumstances and witnessed by at least two credible witnesses who meet the statutory requirements.

Texas also recognizes holographic wills that are wholly in the testator's handwriting under separate rules.

Notarization relates importantly to self-proving procedures, but homeowners should not reduce Texas will execution to simply “get it notarized.” Proper execution requirements matter, and an estate-planning attorney can make sure the will is structured and executed correctly.

Advantages of a will

A will can:

• Address much more than the house

• Name beneficiaries

• Name an executor

• Coordinate the distribution of multiple assets

• Address backup plans if beneficiaries die first

• Work alongside other estate-planning documents

Disadvantages

• A will generally does not eliminate probate simply because one exists.

• Improper execution can create problems.

• A will may conflict with beneficiary designations or non-probate transfers.

• Probate documents generally become part of a court proceeding.

Even homeowners using a TODD, Lady Bird deed, or trust should ask an estate-planning attorney whether they still need a will as part of the overall plan.

4. What Is a Revocable Living Trust?

A revocable living trust is an estate-planning arrangement created during the owner's lifetime.

Texas law allows trusts to hold property, and a settlor can generally retain substantial powers in a revocable trust, including the power to revoke or modify it depending on the trust's terms and applicable law.

For homeowners, one critical issue is often overlooked:

Creating the trust document is not the same thing as transferring the house into the trust.

If the goal is for the trust to own the home, the property generally needs to be properly transferred into the trust structure.

The State Bar of Texas has specifically warned that assets that are never transferred into a living trust may remain subject to probate.

Why would a homeowner consider a trust?

A properly funded revocable living trust can potentially:

• Keep trust-owned assets outside probate

• Provide continuity of management

• Offer greater privacy than a probated will

• Coordinate multiple properties or assets

• Help with more complicated family or ownership situations

• Be useful when someone owns real estate in multiple states

The State Bar has discussed probate reduction, privacy, management continuity, and out-of-state real estate as potential reasons attorneys may recommend revocable trusts.

Disadvantages

• More setup and administration

• Typically higher initial legal cost than a simple deed strategy

• Property must actually be funded into the trust

• Requires ongoing attention as assets change

• Not every Texas homeowner needs one

A trust is not automatically “better” simply because it sounds more sophisticated.

Lady Bird Deed vs. TODD vs. Will vs. Living Trust

Question	Lady Bird Deed	TODD	Will	Revocable Living Trust
Owner generally keeps control during life?	Yes	Yes	Yes	Generally yes when structured as revocable
Can potentially avoid probate for the house?	Yes	Yes	Generally no by itself	Yes, if property is properly held/funded in trust
Real-property document generally recorded?	Yes	Yes—before death	No deed recording simply to create the will	A deed may be needed to transfer real estate into trust
Can plan generally be changed?	Generally yes	Yes	Yes while legally able	Generally yes while revocable
Beneficiary owns house during owner's life?	Not like a traditional remainder beneficiary	No present interest under TODD statute	No	Depends on trust terms; trustee holds trust property
Complexity	Moderate	Low–moderate, but facts matter	Moderate	Higher
Attorney involvement advisable?	Strongly	Recommended	Recommended	Strongly
Often discussed for	A specific Texas property and certain estate/Medicaid planning situations	Relatively straightforward transfer of Texas real property	Overall estate instructions	More comprehensive or complex planning

This table is educational, not a recommendation of one strategy over another.

What About Texas Medicaid Estate Recovery?

This deserves special attention because it is easy to oversimplify.

Texas's Medicaid Estate Recovery Program (MERP) may seek reimbursement from the estate of certain Medicaid recipients who received specified long-term-care services, generally involving people age 55 or older who meet the program requirements. Texas HHSC administers the program.

TexasLawHelp states that property transferred through a Lady Bird deed or TODD can fall outside the probate estate in ways relevant to Medicaid estate recovery.

But Medicaid eligibility, MERP, federal law, exemptions, hardship rules, timing, and the homeowner's other circumstances can be complicated.

Do not choose or change a deed solely because someone told you it “protects the house from Medicaid.”

Talk with a Texas attorney experienced in estate planning and Medicaid issues.

Who Do I Actually Call to Get This Done?

Texas Estate-Planning or Real-Estate Attorney

This is the professional who should evaluate your ownership, family circumstances, existing deed, estate plan, and goals.

The attorney can determine whether a Lady Bird deed, TODD, will, trust, or another strategy is appropriate and prepare or review the documents.

Notary

A notary verifies acknowledgments/signatures where required.

A notary does not replace legal advice and should not be relied upon to determine which estate-planning strategy you need.

County Clerk

The county clerk records eligible real-property documents.

Texas Property Code §12.001 establishes recording requirements for instruments concerning real property.

For a Fort Worth property in Tarrant County, the Tarrant County Clerk handles real-property recording. As of September 2026, the county lists most recordings at $20 for the first page and $4 for each additional page. Always verify current fees before filing.

Title Company

A title company does not replace your estate-planning attorney.

However, title professionals can become especially important when inherited property is eventually sold or refinanced, or when there are questions involving deceased owners, recorded deeds, liens, affidavits, probate, or other title requirements.

TexasLawHelp notes, for example, that TODD beneficiaries may need documentation such as a death certificate or other acceptable evidence when dealing with a title company in a later sale or financing transaction.

CPA or Tax Professional

Questions involving income taxes, capital-gain basis, estate or gift tax consequences, or other tax effects belong with a qualified tax professional working with the estate-planning attorney when appropriate.

Questions to Ask Your Attorney Before Changing Your Deed

Take these questions with you:

• How is my property currently titled?

• Who is actually listed on my current deed?

• How does my mortgage affect the plan?

• Are there liens or other title issues?

• Will my homestead rights or exemptions be affected?

• Does it matter whether I am married or single?

• Is this community or separate property?

• What happens if I have children from a previous relationship?

• What if I want several beneficiaries?

• What if one beneficiary dies before me?

• What if a beneficiary is a minor?

• What if a beneficiary has creditor, disability, or financial-management issues?

• Could Medicaid Estate Recovery affect my situation?

• What if I own property in another state?

• Would a trust solve a problem that a deed alone would not?

• How do I change or revoke the plan later?

• What happens to my mortgage after death?

• What documentation will my beneficiaries need to sell the house?

• Do my deed, will, beneficiary designations, powers of attorney, and trust all work together?

The Real Question Isn't “Which Document Is Best?”

The better question is:

“How do I want my home and other assets handled, and does my current estate plan actually accomplish that?”

For one homeowner, a TODD might be something to discuss with an attorney.

Another homeowner may need a Lady Bird deed.

Someone with multiple properties, property in several states, a blended family, minor beneficiaries, or more complicated planning goals may need to discuss a trust.

And regardless of how the house transfers, a will and other estate-planning documents may still have important jobs to do.

Your home is often one of your family's largest assets. A little planning now can prevent confusion later.

Want the Homeowner Checklist?

Download my Texas Homeowner Estate Planning Guide comparing Lady Bird deeds, Transfer on Death Deeds, wills, and living trusts, plus a checklist of questions to take to your attorney.

And if you're dealing with an inherited property, probate property, longtime family home, downsizing decision, or preparing a property for a future sale in Fort Worth or Dallas-Fort Worth, I can help you understand the real-estate side of the decision.

Dina Morales | Selling Fort Worth
Fort Worth / Dallas-Fort Worth Real Estate
817.881.3474
RealtorDina.com

Dina Morales is a real estate professional, not an attorney, CPA, tax adviser, or estate planner. This article provides general educational information and is not legal or tax advice. Texas law and individual circumstances can change the appropriate strategy. Consult qualified Texas legal and tax professionals regarding your situation.