Adding a TOD

A Simple Strategy To Avoid Probate

Friday, March 27, 2026

One of the most common frustrations families encounter after the death of a loved one is the probate process. Probate is the legal procedure through which a court validates a will, settles debts, and distributes assets to heirs. While probate has an important role, it can also be time-consuming, public, and sometimes expensive. For many families, thoughtful planning can help simplify this process. One of the most effective tools available is the Transfer on Death (TOD) designation.

A Transfer on Death designation allows certain assets to pass directly to a named beneficiary when the owner dies, without going through probate. In many ways, it functions similarly to beneficiary designations on retirement accounts or life insurance policies. The asset remains fully under the owner’s control during their lifetime, but upon death, ownership transfers automatically to the named beneficiary.

The primary advantage of TOD arrangements is efficiency. Probate can take months—and sometimes longer—depending on the complexity of the estate. Assets with TOD designations typically transfer much more quickly because the beneficiary only needs to present a death certificate and complete a few administrative steps with the institution holding the asset.

Another benefit is privacy. Probate proceedings become part of the public record, meaning anyone can potentially view the details of the estate. Transfers through TOD designations occur outside the probate court system, helping families maintain a greater level of confidentiality.

TOD designations are commonly used for financial accounts such as brokerage accounts, stocks, and certain investment accounts. Check with your financial professional to However, many people are surprised to learn that real estate can also transfer through a Transfer on Death deed in states that allow it, including Texas.

A Transfer on Death Deed (TODD) allows a property owner to name a beneficiary who will automatically inherit the property upon the owner’s death. During the owner’s lifetime, nothing about the ownership changes. The owner retains full control of the property and may sell it, refinance it, or even revoke the TOD deed if circumstances change.

When used properly, Transfer on Death designations can provide families with simplicity, speed and peace of mind during an already difficult time.

This flexibility is one of the major strengths of a TOD deed. Unlike some other estate planning tools, the beneficiary has no legal rights to the property while the owner is alive. The property simply transfers upon death without the delays associated with probate.

To establish a TOD Deed, the document must generally be properly prepared, signed, and recorded with the county clerk’s office before the owner’s death. If it is not recorded before death, it is not valid. Because of this requirement, many people choose to work with an attorney to ensure the document is properly executed.

Despite their advantages, TOD designations should be used thoughtfully as part of an overall estate plan. For example, naming multiple beneficiaries or coordinating TOD assets with the instructions in a will requires careful consideration to avoid unintended consequences. Additionally, TOD transfers do not eliminate outstanding debts or liens attached to property.

When used properly, however, Transfer on Death designations can provide families with simplicity, speed, and peace of mind during an already difficult time.

Good estate planning is not simply about distributing assets; it is about removing unnecessary burdens from the people we care about most. Tools like TOD designations and Transfer on Death deeds help ensure that what we have built in life passes smoothly and efficiently to the next generation.

Jim Pannell, Managing Principal

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  All performance referenced is historical and is no guarantee of future results. 

Riverfront Capital Strategies and RCS representatives do not provide tax or legal advice. All information is believed to be from reliable sources; however, Riverfront Capital Strategies makes no representation as to its completeness or accuracy. Content in this material is for general information purpose only.