Transfer on Death Deed

As part of your estate planning strategy, it's essential to consider how your assets will be transferred to your beneficiaries upon your passing. One new tool in estate planning is the Transfer on Death (TOD) Deed, which was recently approved by the New York State Legislature in   2024.

What is a Transfer on Death (TOD) Deed?

A Transfer on Death Deed, also known as a Beneficiary Deed, allows property owners to name one or more beneficiaries who will automatically receive the property upon the owner's death, without the need for probate.  Unlike a Deeded Life Estate the TOD Deed is revocable during the owner's lifetime, providing flexibility and control over the property until death.

Historical Context

While some other states have had TOD Deeds for some time this Deed is a new tool in New York and it is still unclear how it will impact other areas of planning, especially Medicaid. Prior to its introduction, transferring real property upon death required the issuance of letters from the Surrogates Court, a time-consuming process or the use of a Trust. The TOD Deed allows a direct transfer to the named beneficiary, avoiding probate altogether. However it is unclear at this time if it will avoid estate creditors. 

The key features of the TOD Deed included:

- Revocability: The owner could revoke or change the beneficiary designation at any time.

- No Immediate Interest: The beneficiary had no rights to the property until the owner's death.

- Avoidance of Probate: Direct transfer to the beneficiary, bypassing probate.

As always we are encouraging clients to review their existing Estate Plans to ensure that they are current and are maximized for efficiency. TOD Deeds are a new tool that may be able to provide some clients with a simpler way to transfer real property without the need for ta trust. 

If you have any questions or would like to discuss how these changes impact your estate planning, please do not hesitate to contact our office.

To get started today, click here to book your consultation with our team of experienced elder law attorneys.