Are you worried about what will happen to your property when you pass away? Many people share this concern. It's hard to think about, but planning ahead can help ease the burden on loved ones.
I've been in your shoes too and wanted an easy solution for my family. Starting July 10, 2024, New York offers Transfer on Death (TOD) Deeds. This lets you transfer your home without a will or trust.
In this article, learn how TOD deeds work and their benefits. We'll also discuss if they are right for everyone. Keep reading to find out more!
The Transfer on Death (TOD) Deed will be usable by property owners in New York starting July 10, 2024, with the addition of Section 424 to New York State Real Property Law.
Other states already let people use Transfer on Death Deeds (also called Lady Bird Deeds), but this is a big change for estate planning in New York. Now, property owners can make it easier to transfer their real estate to beneficiaries without needing a will or trust and skipping the probate process. They can name a beneficiary or beneficiaries to receive their property when they die by recording a TOD deed.
The TOD Deed takes effect once the property owner dies if they signed it in front of two witnesses who also signed it. The deed must be recorded at the county clerk’s office where the property is located before the transferor dies. There is no effect on the owner's rights during their lifetime; they keep full control to transfer or encumber the property while alive. If there are liens or other interests on the property when the owner dies, these will pass along with the property to the beneficiary.
This transfer method offers flexibility because an owner can revoke it by recording a new deed. But it can't be revoked using a will. Also, if the named beneficiary dies before the owner, then this transfer fails, and the deed won’t decide who gets the property after death. A TOD Deed beneficiary doesn't need to be notified for it to work but they can refuse their interest just like they could if inheriting under a will.
The TOD Deed is an important and easy way for properties to change hands after an owner's death. Yet, for many New York property owners, this might not be their best estate planning tool.
For instance, someone with a disabled child receiving government benefits might prefer letting their property pass through a will into a supplemental needs trust instead of using a TOD deed. This would help avoid interrupting those benefits. Also, an older person should think about putting their property into an irrevocable trust for creditor protection and Medicaid planning.
When transferring property into an irrevocable trust, assets inside won't count for Medicaid eligibility and stay safe from Medicaid estate recovery. Plus, assets in a trust rather than given directly can be managed according to what terms and conditions are stated in that trust beyond an owner’s death. This protects beneficiaries from creditors, poor spending habits or ex-spouses.
A TOD Deed might help some people but speaking with an experienced estate planning attorney is always smart for finding out what best suits your family’s needs. Contacting Queens, NY probate attorneys at Roman Aminov's Law Offices at 347-766-2685 could help you plan your estate today.
This article aims solely at educating readers with general information rather than providing specific legal advice. Reading this does not create any attorney-client relationship and should not replace getting proper legal advice from licensed attorneys in your state.
Conclusion
Starting July 10, 2024, New Yorkers can use Transfer on Death Deeds to pass property without a will or trust. You must sign the deed with two witnesses and record it at the county clerk's office. This deed takes effect only upon your death.
During your lifetime, the deed gives you control of your property. You can easily revoke it by recording another one. However, some people might need other options like wills or trusts for special needs planning.
It's smart to seek help from an estate planning attorney. Roman Aminov’s Law Offices in Queens can assist (347-766-2685).
FAQs
1. What is a Transfer on Death Deed?
A Transfer on Death (TOD) deed lets you name someone to inherit your property when you die... without going through probate.
2. How does a TOD deed work in New York?
In New York, you sign the TOD deed and record it with the county clerk where your property is located. The property then transfers directly to the named beneficiary upon your death.
3. Can I change or revoke my TOD deed?
Yes, you can change or revoke your TOD deed at any time before you die by recording a new one or filing a revocation form with the county clerk.
4. Are there benefits to using a TOD deed?
Using a TOD deed helps avoid probate, saves time and money, and provides clear instructions for transferring property after death... making things easier for loved ones.
