How to Avoid Probate with a Transfer on Death Deed, Lady Bird Deed, or Warranty Deed to a Living Trust in Texas

🏡 How to Avoid Probate with a Transfer on Death Deed, Lady Bird Deed, or Warranty Deed to a Living Trust in Texas

When you pass away in Texas, your assets don’t automatically go to your loved ones. Without proper planning, your estate—especially your home—could get stuck in probate, a costly and time-consuming court process. But here’s the good news: Texans have unique legal tools to avoid probate while still keeping control during life.

In this article, we’ll break down the three most effective deed options for avoiding probate in Texas:

1. Transfer on Death Deed (TODD)

2. Lady Bird Deed (Enhanced Life Estate Deed)

3. General Warranty Deed to a Living Trust

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⚖️ Why Avoid Probate?

Probate in Texas may be more streamlined than in other states, but it’s still:

• Public (your estate becomes a court record)

• Expensive (attorney and court fees)

• Slow (can take months or longer)

• Stressful for grieving family members

Your goal? Pass your home automatically and privately to your heirs. These deeds can help.

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📜 1. Transfer on Death Deed (TODD)

What It Is:
A legal deed that allows you to name one or more beneficiaries who will automatically inherit your home upon your death—without probate.

Key Features:

• You retain full control during your life (you can sell, refinance, or revoke it).

• No gift tax consequences since it only takes effect at death.

• No need to change your mortgage or title insurance.

Best For:
Homeowners with straightforward plans who want to pass their home to a spouse or child without going through probate.

Some Pros:

✅ Avoids probate
✅ Keeps homestead protections
✅ Inexpensive to set up

✅ Medicaid-friendly (in most Texas cases)

Some Cons:

⚠️ Can create title issues if multiple beneficiaries inherit equally
⚠️ Limited estate planning flexibility
⚠️ Some title companies can be fussy about them post death

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🏠 2. Lady Bird Deed (Enhanced Life Estate Deed)

What It Is:
A Lady Bird Deed allows you to deed your home to your beneficiaries while reserving a life estate and additional powers—like the right to sell or mortgage the property.

Why It’s Powerful:
It avoids probate and prevents Medicaid from placing a lien on your home after death (in most cases). That’s a big win if you might need long-term care.

Best For:
People who want probate avoidance with Medicaid protection.

Some Pros:

✅ Avoids probate
✅ Keeps homestead protections
✅ Medicaid-friendly (in most Texas cases)
✅ Easy to revoke or change

Some Cons:

⚠️ Not every title company likes them
⚠️ May not be the best tool for multiple or blended family heirs
⚠️ Not commonly used outside Texas and a few other states

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📄 3. General Warranty Deed to a Living Trust

What It Is:
You create a revocable living trust and deed your home to that trust. The trust contains detailed instructions about who gets the home and how.

How It Works:
Upon your death, the successor trustee takes over and distributes the home (or its sale proceeds) to your beneficiaries—without court involvement.

Best For:
Homeowners with larger estates, blended families, special needs beneficiaries, or multiple properties across states.

Pros:

✅ Avoids probate
✅ Highly flexible and customizable
✅ Integrates with broader estate plan
✅ Maintains homestead protections
✅ May reduce future costs (esp. if trust is already in place)

Cons:

⚠️ Sometimes more costly or time consuming than TODD or Lady Bird
⚠️ Requires trust maintenance and correct titling of assets

⚠️ Requires home insurance updates

⚠️ You should discuss with your Title Company re coverage of the lapse it could cause

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🧠 Which One Should You Choose?

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💡 Pro Tip: You Can Use More Than One

Example: You might use a TODD for your personal residence, a living trust for your bank and brokerage accounts, and a Lady Bird Deed for your vacation home.

The right combo depends on your family structure, your assets, and your long-term goals. An experienced estate planning attorney can help you build the right mix.

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👨‍⚖️ What Happens If You Do Nothing?

If you don’t plan:

• Your home may go through probate.

• Heirs may argue over who gets what.

• Your property may be subject to creditors, court delays, and stress for your family.

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📍 Texas-Specific Considerations

Texas is one of the few states that recognizes:

• TODDs

• Lady Bird Deeds

• Special trust-based probate alternatives

That means you have more flexibility than most Americans—if you act now.

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✅ Need Help Setting Up the Right Deed?

At Mike Massey Law, we help Texans create powerful, probate-avoiding plans using trusts, TODDs, and Lady Bird Deeds. We offer:

• Flat-fee estate plans

• 3-day turnaround

• 500+ five-star reviews

• Free consultations

📆 Book a Consultation Now
📺 Watch Our Living Trust Webinar
🌐 Explore Your Options

This blog is for informational purposes only and does not constitute legal advice. Reading this blog does not create an attorney-client relationship. For personalized legal guidance, please contact a licensed attorney in your jurisdiction.  By no means is this an exhaustive study, and there are dozens of pros and cons to be considered, many of which are not listed or not discussed in enough depth to make a decision for personal situations.