Moving to Austin brings new routines, new licenses, and—if you are married—new rules about property. Texas is a community-property state, which means most assets you and your spouse acquire during marriage belong to both of you. With one short document, a Community-Property Survivorship Agreement, you can turn that shared ownership into a fast, probate-skipping transfer at the first spouse’s death. If you are a transplant from a common-law state, this tool may be the simplest upgrade you make to your estate plan.
What a Community-Property Survivorship Agreement Does
A survivorship agreement says that community property will pass to the surviving spouse by right of survivorship, similar to joint tenancy with right of survivorship in other states. When one spouse dies, the survivor owns the property outright without waiting for court orders. Title companies recognize the agreement, and your survivor can sell, refinance, or retitle without opening a full probate just to move a home or bank account.
The agreement applies to community property you already own and, if drafted correctly, to community property you acquire later. You can exclude certain assets if needed, but most couples keep it broad so everyday accounts, vehicles, and the residence all ride the fast lane.
Why Austin Transplants Benefit
If you recently moved from a separate-property state, your accounts may be titled in one name or set up to match old rules that do not give your spouse automatic survivorship in Texas. A survivorship agreement functions like a statewide upgrade. It works across your Austin life: the South Austin home you bought together, the car you just financed, and the checking account where both paychecks land.
Because Austin real estate moves quickly, the ability to retitle or sell without waiting for probate can be the difference between catching a favorable market and missing it. Your survivor will also avoid bond premiums and months of administration fees on assets the two of you intended to keep simple.
How It Fits With Wills and Trusts
A survivorship agreement does not replace your will or living trust; it complements them. Think of it as a lane for spouse-to-spouse transfers, while your will or trust handles everything else: separate property, bequests to children, guardianship provisions, charitable gifts, and backup plans if both spouses pass in close succession. If you already have a revocable trust, you can still use a survivorship agreement for certain community assets while titling others in the trust. The key is coordination so your tools do not conflict.
Community vs. Separate Property Still Matters
Texas presumes that assets acquired during marriage are community property, but separate property rules still apply to assets owned before marriage, inheritances, and gifts. A survivorship agreement should make clear that it covers community property only. For separate property, your will or trust dictates what happens. Many couples also execute a partition agreement to clarify what is separate, especially if they arrived in Austin with out-of-state investment accounts or premarital equity.
Dealing With Mortgages, Titles, and Beneficiary Forms
Lenders generally do not object to survivorship agreements, but you should keep copies with your loan documents. For vehicles, you can add “right of survivorship” language when you title or retitle at the county tax office. For bank and brokerage accounts, confirm beneficiary designations and transfer-on-death options so they match your plan. The agreement handles community ownership, while the designation handles the institution’s internal process. Align both and your survivor will not face mixed messages.
Tax Considerations You Should Know
Community property offers a powerful tax advantage: at the first death, both halves of community property usually receive a basis adjustment to fair market value. That can reduce future capital gains for your survivor if they sell soon after. A survivorship agreement does not eliminate that benefit; it preserves it while delivering easy title transfer. Keep appraisals and date-of-death statements so your CPA can document the basis step-up later.
When You Might Not Use One
If your family structure involves adult children from prior relationships and you want some assets to pass directly to them at the first death, you may choose to limit or skip survivorship on those assets. You could, for example, use a trust to benefit your spouse for life and preserve principal for children. Survivorship is about speed and simplicity; if your priority is control and long-term division, use trusts for those assets and survivorship for the rest.
Practical Steps to Put It in Place
First, sit down with current deeds, titles, and account statements. Second, meet with counsel to confirm which assets are community and whether any should be excluded. Third, sign and notarize the survivorship agreement and, for real property, record a memorandum in the county where the property sits. Fourth, adjust beneficiary forms and transfer-on-death registrations to match. Finally, store copies in the same folder as your powers of attorney and wills so your spouse can find everything on a hard day.
Keep It Current After Life Changes
Refinances, home purchases in Travis or Williamson County, and new brokerage relationships all warrant a quick check. Add a calendar reminder to review your agreement and beneficiary forms every two years or after major moves. Ten minutes of maintenance saves months of administration later.
If you want a clean, spouse-first path that honors Texas rules, this is it. To draft and record an Austin-ready Community-Property Survivorship Agreement—coordinated with your will, trust, and titles—call McCulloch & Miller, PLLC at (713) 936-9073 and keep your plan swift, simple, and aligned with Texas law.