As of July 19, 2024, New York State has introduced Transfer on Death (TOD) deeds—a groundbreaking development for property owners. This new law allows property owners to transfer their real estate directly to beneficiaries upon death, bypassing the often lengthy and costly probate process. Here’s a breakdown of what you need to know.
Understanding the Legal Requirements
To be valid, TOD deeds in New York must comply with the specific requirements outlined in New York Real Property Law §424. It’s important to note that the County Clerk’s office does not provide a standard TOD deed form. Property owners or their attorneys must prepare the deed themselves, ensuring it meets all statutory requirements.
The Importance of Legal Assistance
While it’s possible to draft a TOD deed without legal assistance, consulting with an attorney is strongly recommended. Real estate laws can be complex, and an attorney will help ensure that the deed is correctly drafted and complies with all legal requirements. Professional guidance can prevent potential issues that could arise after the property owner’s death, providing peace of mind for both the owner and the beneficiaries.
Considering Alternatives
Although TOD deeds are a valuable tool, they may not be the best option for everyone. Alternatives include life estate deeds, living trusts, joint tenancy with the right of survivorship, and tenancy by the entirety. Each alternative has its own advantages and may be more suitable depending on individual circumstances.
Communicating with Beneficiaries
It’s considered best practice to inform the beneficiaries of their future interest in the property. This ensures that they are aware of the transfer and can plan accordingly. Clear communication is key to avoiding surprises and potential disputes after the property owner’s passing.
Lori Vella is an Estate Planning and Business Attorney. She works virtually throughout Florida and New York, but has her home office in Tampa, Florida. She is mom to a little boy which ignited the passion for helping other families. She and her son enjoy car rides, playgrounds and taking mini-adventures. They also have an organic garden that surprisingly yields vegetables. Lori considers herself well-versed in Seinfeld and welcomes any trivia!
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