Transfer on Death Deeds in The Empire State
One difficult yet critical question that needs to be asked once someone passes away is, what happens to their most prized assets?
In April of this year, New York State lawmakers adopted the “Transfer on Death Deed Law,” which will take effect in mid-July. This provision, codified in Section 424 of the New York Real Property Law, allows asset owners of real property - land and anything permanently attached to it - to designate beneficiaries who will inherit the asset once they pass away.
Some key stipulations regarding TOD deeds are as follows:
Except as otherwise stated, the deed must contain the essential elements and formalities of a properly recordable inter vivos deed.
The TOD deed must state that the transfer to the designated beneficiary is to occur at the transferor's death.
The paperwork shall be signed by two witnesses who were present at the same time and who witnessed the signing of the transfer on death deed.
Signatures must be acknowledged before a notary public.
TOD deeds shall be recorded before the transferor's death in the public records in the county clerk's office of the county where the property is located in the same manner as any other type of deed.
Additionally, transfer on death deeds allow individuals to:
Avoid probate by transferring ownership of the property directly to the intended beneficiary.
Have complete control over their property during their lives, and can sell it without permission from the selected beneficiary.
Undergo a quick and cheap process relative to starting up trusts.
Revoke the deed before they pass away at any time.
It is important to note that there are some drawbacks of undergoing the TOD deed process. Some negatives include: (1) the inability to transfer property to minors, (2) confusion if there are numerous selected beneficiaries, and (3) possible disputes between beneficiaries over selling the property due to little to no control over doing so after the property gets transferred.
As complex property laws continue to evolve, our team of experienced professionals here at the Law Office of Marc Scolnick, PC is ready to provide you with the support you need. Call us today at (718) 554-6445 to schedule a FREE consultation so we can assist you in your legal matters.
Sources:
Understanding New York's New Transfer on Death Deed | World Wide Land Transfer
Transfer on Death in New York: How it Works and What You Need to Know | Snug | Snug (getsnug.com)
NYS Open Legislation | NYSenate.gov
New York Real Property Law Chapter 50 Article 12 Section424 - Search (bing.com)
This blog post is intended to provide information generally and to identify general legal requirements. It is not intended as a form of, or as a substitute for legal advice. Such advice should always come from in-house or retained counsel. Moreover, if this post in any way seems to contradict the advice of counsel, counsel’s opinion should control over anything written herein. No attorney-client relationship is implied by this blog.