Approximately 60 percent of Americans lack a will or an estate plan, and many who do have a will misunderstand a power of attorney’s authority—especially whether a POA can sign a transfer on death deed (TODD)—which can lead to daily family disputes. When acting as someone’s POA agent, it’s important—and often legally required—to know exactly what you are and are not authorized to sign.
What Is a Transfer on Death Deed (TODD) in Texas?
A transfer-on-death deed is a Texas instrument that lets a property owner name a beneficiary to receive the property at the owner’s death without probate, if statutory requirements are met. Consider it a beneficiary designation for your house.
The deed does not transfer anything while the owner is alive. They retain complete control of the property and can sell it, refinance it, or revoke the TODD at any time. The beneficiary receives the property only after the owner’s death.
This is what makes a TODD unique: it is a personal choice about what should happen when you die. The difference matters more than you might imagine, especially when someone else is signing papers on your behalf.
Can a POA Sign a TODD in Texas?
A clear answer for “Can a POA sign a TODD in Texas?” is No. An agent under a power of attorney cannot sign a transfer-on-death deed in Texas, even if the POA document grants broad property‑management authority.
Texas Estates Code requires the transferor to sign and acknowledge the TODD and record it before death, and an agent under a power of attorney may not create or revoke a TODD, as outlined in Texas Estates Code 114.055 and 114.056.
Why? Because signing a transfer on death deed (TODD) is a testamentary act, similar to creating a will. It takes effect only upon the owner’s death and must be personally executed by the property owner.
It expresses your personal wishes about inheritance, and that’s something you cannot delegate.
Even if your POA allows your agent to buy, sell, or manage property during your lifetime, those powers don’t extend to making decisions about who inherits after you’re gone. The law draws a clear line between managing property today and deciding who gets it tomorrow.
For example, if your mother names you as her POA and later wants to create a TODD leaving her home to your sister, you cannot sign that deed for her. She must sign it herself while she has the legal capacity to do so.
You may also like our post, “Will vs revocable trust in Texas” where we explain the key differences between testamentary documents and living trusts.
The Difference Between Signing as a POA and Making Estate Decisions
Understanding this distinction prevents serious legal problems down the road.
As a POA agent, you may manage property during the owner’s lifetime, such as signing a sales contract, negotiating a lease, paying taxes, or arranging repairs. These are lifetime management decisions, but you cannot make decisions about who inherits after death.
But estate planning decisions are different. They reflect personal values, family relationships, and individual wishes about the future. A will, a TODD, or beneficiary designations aren’t just paperwork—they’re deeply personal choices.
Think of it this way: a POA gives you the keys to manage the car while the owner is still driving. It doesn’t give you the right to decide who inherits that car after the owner passes away.
For those who want to create a power of attorney online, click here to get your attorney-drafted document delivered in minutes.
Can a POA Change Beneficiaries on Other Assets?
This is where things get more nuanced. While you cannot sign a TODD, you might be able to change beneficiaries on certain financial accounts—but only if your POA document explicitly grants this specific authority.
Understanding “Hot Powers” in Texas
Texas law treats beneficiary changes as “hot powers”—high‑risk authorities that require explicit language in the POA form. These aren’t assumed or implied. They must be clearly stated.
Hot powers can include changing beneficiaries on:
- Payable-on-death bank accounts
- Retirement accounts (401(k)s, IRAs)
- Life insurance policies
- Transfer-on-death securities accounts
An agent may change beneficiaries on certain accounts only if the power of attorney expressly grants that authority; otherwise, any beneficiary change you make as an agent could be invalid. Before making any beneficiary changes, carefully review the Estates Code provisions governing beneficiary designations under Texas law. 751.031(b)(4) and 751.033.
The Risks POA Agents Face When Acting Beyond Their Authority
Exceeding your authority as a POA agent isn’t just a paperwork problem—it can trigger serious personal and legal consequences.
Financial Liability
If you make unauthorized changes that cause financial loss, you could be held personally responsible for damages. That might mean paying back money out of your own pocket or facing a lawsuit from family members.
Family Disputes
Changing beneficiaries or attempting to sign estate documents without proper authority can trigger accusations of undue influence, elder abuse, or financial exploitation. These conflicts can damage family relationships and drag everyone through expensive litigation.
Long-Term Consequences
Even well-meaning decisions can come back to haunt you. Imagine thinking you’re helping by updating beneficiaries to reflect what you believe the owner would want—only to discover later that the owner had different intentions.
The solution? Always verify your authority before acting. Keep copies of the POA document handy and review it carefully.
2025 Estate Planning Considerations for Texas Property Owners
As we move through 2025, both property owners and POA agents should review their estate planning documents to ensure everything aligns with current laws and intentions.
For property owners, now is a good time to examine your existing TODD and POA documents.
For agents, understand that Texas continues to refine estate laws, and county recording requirements may vary. Keep organized files with copies of both the POA and any existing TODD. Know your limitations before someone asks you to sign something you don’t have the authority to handle.
Consider reviewing estate planning documents every few years, especially after major life changes like marriage, divorce, birth, or death in the family.
Wrapping Up…
A power of attorney cannot sign a transfer-on-death deed in Texas—that authority belongs exclusively to the property owner. While POA agents might change beneficiaries on other accounts, they can do so only if the POA document explicitly grants that power.
If you’re unsure about your authority or need to update your estate plan, consult an experienced Texas estate planning attorney or use our online estate planning forms to create your documents in minutes. Getting it right now helps prevent costly problems later.
