New York State's Transfer on Death (“TOD”) Deed
On April 20, 2024, the New York State Legislation passed a law which streamlined the process of transferring real property upon death. Now, under New York State Real Property Law § 424, title to real property can be transferred using a Transfer on Death (“TOD”) Deed. TOD allows real property owners to name beneficiaries who will receive an ownership interest in the real property upon the owner’s death. This law took effect on July 19, 2024. To see New York’s TOD Deed law please see New York State Real Property Law § 424.
Generally, when using a TOD deed, the owner of the real property fills out the TOD form and executes it in front of witnesses and a notary. The executed deed is recorded with the County Clerk in the appropriate county. A benefit to the owner is that the owner retains full control of the property while he or she is alive. Having the right to revoke a TOD deed at any time before death ensures the owner retains ownership while ensuring the property is passed efficiently as possible. A benefit to previously designated beneficiaries is that the TOD deed bypasses the lengthy and expensive process of surrogate’s court.
Using a TOD Deed certainly has its advantages but is it right for everyone? The answer is a resounding no. TOD Deeds can be confusing and lead to litigation in a situation where there are multiple owners. For more updates on TOD or if you need help creating a TOD Deed, please call J. P. Robinson Law at (914) 265-3179 or email at Justin@jprobinsonlawllc.com.
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