Think Your TOD Deed Avoids Probate? Not So Fast.

Dear New York Homeowner,

Transfer-on-Death deeds commonly called TOD Deeds have become an increasingly popular estate planning tool in New York. The appeal is obvious: name a beneficiary on your deed, and when you pass away, the property transfers to them automatically. No probate. No court. Simple, right?

Not exactly. What nobody tells you upfront is what happens after the homeowner dies and what title companies in New York are now requiring before that property can actually be sold, refinanced, or transferred. The process is more involved than most families expect, and the timeline can catch people off guard at the worst possible moment.

What Is a TOD Deed and Why Do People Use It?

A Transfer-on-Death deed allows a New York homeowner to name a beneficiary who will inherit the property upon their death, without the property having to go through probate. It sounds like a clean, cost-effective solution and in some situations, it can be. But like most "simple" estate planning shortcuts, the complications tend to show up later.

What New York Title Companies Are Requiring After the Owner Dies

Here's where families run into trouble. When the beneficiary of a TOD deed tries to sell or refinance the property after the owner passes, title companies don't just take their word for it. Before they'll insure the title, which is required for any sale or mortgage, they typically require a formal paper trail that can take significant time and effort to pull together.

This commonly includes the official death certificate, an affidavit of survivorship confirming the beneficiary's identity and relationship to the deceased, proof that there are no outstanding Medicaid claims or estate recovery liens against the property, documentation confirming no creditors have claims against the estate, and in many cases, a waiting period to allow any potential claims to surface before the title is cleared.

That last point is important. Even though a TOD deed is designed to bypass probate, title companies are still on the hook if a lien, a Medicaid recovery claim, or a creditor surfaces after the property transfers. So, they protect themselves, which means your family waits.

The Timeline Nobody Warns You About

The process of satisfying title company requirements after a TOD deed owner dies can stretch from several months to well over a year depending on the complexity of the estate, whether Medicaid was ever involved, and whether any disputes arise among family members or creditors. For a family counting on a quick sale or needing to access equity in the property, that timeline can create real financial hardship.

And if the deceased ever received Medicaid benefits, New York State has the right to file a recovery claim against the estate including property transferred through a TOD deed. That alone can bring the entire process to a halt while the claim is resolved.

Is a TOD Deed a Bad Idea?

Not necessarily, but it's not the foolproof shortcut it's often marketed as. For straightforward situations with no Medicaid history, no creditor issues, and a clear beneficiary, a TOD deed can work reasonably well. But for most New York families, a revocable living trust accomplishes the same goal: avoiding probate, transferring property seamlessly, with far fewer complications on the back end. A trust gives your beneficiaries a cleaner title, a faster process, and significantly less paperwork to navigate while they're grieving.

The goal of estate planning is to make things easier for the people you love. A TOD deed can sometimes do the opposite.

Don't Leave Your Family with a Title Problem

At Sammartino & Sultan Law Group, we help New York families choose the right tools for their estate plan - ones that actually work the way they're supposed to when the time comes. If you have a TOD deed in place or are considering one, let's make sure it's the right move for your situation.

Contact us today to schedule a consultation.

This article is for informational purposes only and does not constitute legal advice. Attorney advertising.

About the Author

Christina has been practicing law in New York State, for over 7 years. She is a Pace University School of Law graduate. After passing the New York and New Jersey Bar Exams, she went on to work for several law firms with primary practice areas in Real Estate, Estate Planning, Estate Administrations, Guardianship proceedings under Article 81 of the Mental Hygiene Law, and Article 17A, Medicaid planning and applications. Christina is also certified as a Guardian, Court Evaluator, and Attorney for the AIP under Part 36 of the Rules of the Chief Judge.