Update: Transfer on Death (TOD) Deeds Are Now Live in New York!

Big news for New Yorkers: as of July 19, 2024, Transfer on Death (TOD) deeds are officially here! If you’ve been wondering if there’s an easier way to leave your home to loved ones without court delays, this is a big win. At Sammartino & Sultan Law Group, we’re excited to break down how TOD deeds work, what makes them awesome, and reasons you might want to chat with an estate planning attorney before signing anything.

What’s Changed?

No more jumping through hoops just to keep your family out of probate court. Now, with a TOD deed, you can name who inherits your property in New York, the transfer kicks in automatically when you pass away, no will or probate required.

The Basics of a TOD Deed

• Easy Setup: Complete a TOD form, sign in front of two witnesses and a notary, then record it at your county clerk’s office before you die.

• Full Control (While You’re Alive): You can revoke or change your TOD deed anytime. The person you name won’t have any rights to your property while you’re living, it's 100% yours until you're gone.

• Multiple Beneficiaries: You can name more than one person, and you pick who gets what.

• No Gift Tax Headaches: Creating a TOD deed isn’t considered a “gift,” so there’s no tax hit for you or your future heirs.

• Avoids Probate: TOD deeds zoom property straight to your chosen beneficiary, skipping the time and cost of probate court.

Things to Watch Out For

TOD deeds make things easy, but there are some quirks:

• Record It, or It Doesn’t Count: If you don’t file the deed before you pass, the TOD is invalid, and your property will still go through probate.

• Creditors Still Get Priority: If your estate owes money, the property can still be pulled back to pay debts, even with a TOD deed.

• No Medicaid Shielding: TOD deeds don’t block Medicaid recovery and aren’t ideal if asset protection is a big concern for your family.

• Family Drama Possibilities: Multiple heirs? A TOD deed could lead to squabbles and title headaches if your heirs can’t agree on what to do with the property following your passing.

The Bottom Line

TOD deeds are a simple, cost-effective estate planning tool for a lot of folks in New York, but they’re not perfect for every situation. Especially if you need asset protection or have a complicated family or financial picture, a more traditional estate plan might still be your best bet.

Wondering If a TOD Deed Is Right for You?

Don’t guess ask us! The Sammartino & Sultan Law Group team is here and happy to help you figure it out. We’ll explain your best options, simplify the fine print, and help you protect your home, your wishes, and your legacy.

Give us a call or schedule a consultation with our team today and we’ll help you make the smart move!

About the Author

Leslie has been practicing law since 2009 and is the host of the estate planning podcast 'Legacy Purse'. She has a long history of representing family members struggling to inherit property and/or wealth from deceased family members through the Probate Courts. Knowing how time-consuming and expensive the probate process is, Leslie takes great pride in helping her clients learn how to plan and protect their families during their lives so they can avoid the probate court process and save their loved ones that additional grief (and expense).