New York State to Allow Transfer on Death Deeds (TOD Deeds) to Avoid Probate

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Starting July 19, 2024, New Yorkers have a new way to transfer property after they die - Transfer on Death Deeds (TOD Deeds). This is great news because it lets you avoid the probate process, which can be time-consuming and expensive.

Here's how TOD Deeds work:

  • Name one or more people (beneficiaries) to inherit your property upon your death.
  • The TOD Deed is recorded in the county where the property is located.
  • Important: The TOD Deed doesn't take effect until you die, and you can change your mind and revoke it at any time during your lifetime.

Benefits of TOD Deeds:

  • Saves time and money by avoiding probate court.
  • You can still sell, give away, or mortgage the property while you're alive.

How to make a TOD Deed:

  • Have the TOD Deed signed by two witnesses who see you sign it.
  • Record the TOD Deed in the county where the property is located.

Things to Keep in Mind:

  • Beneficiaries inherit the property "as is," meaning they are responsible for any outstanding debts or liens on it.
  • If a beneficiary dies before you, their share of the property won't pass to their heirs.
  • TOD Deeds are relatively new, so there may be some unanswered questions, like what happens if the estate can't pay its debts after a TOD Deed is used.

Overall, a TOD Deed offers a convenient way to avoid probate for certain property transfers in New York. If you're interested in learning more, talk to Pete Weinman.

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