New York State passed a new law last year and it took effect in July of the same year. The law, known as the “Transfer on Death Deed Law,” allows property owners to designate beneficiaries by signing a deed before their death. After the owner passes away, the property can be automatically transferred to the designated beneficiaries without going through the probate process. This new option could have a significant impact on many people, particularly the elderly.
Council Member Sandra Ung of the 20th District invited lawyers to provide information about this new law to seniors at a self-help center in Flushing on May 21. The seniors showed great interest in the new law, and the event was well-attended.
According to Rose Marie Cantanno, a lawyer from the New York Legal Assistance Group (NYLAG), New York State passed legislation on April 20, 2024, which came into effect on July 19 of the same year. Owners of single-family homes and condos can sign a “Transfer on Death Deed” (TOD deed) to automatically transfer their real estate to the chosen beneficiaries upon the owner’s death.
The deed must be signed by two witnesses present at the same time, acknowledged by a notary public, and recorded in the public records of the county clerk’s office.
The TOD deed can be used for transferring single-family homes and condos, but not for cooperative apartments (Co-ops). It allows the property to be automatically transferred to new owners after the owner’s death without the need for court involvement, facilitating the transfer of the property into the new owner’s name. Before the TOD deed, property inheritance had to go through probate court, which could take at least a year and incurred higher costs based on the property value. The TOD deed can save time and money.
While the owner is alive, the property remains theirs, and the beneficiary of the TOD deed has no legal rights to the property. The current property owner can cancel the deed at any time and enter into a new agreement.
The TOD deed is just a simple one-page document that needs to be registered with the county clerk’s office, and apart from Nassau County on Long Island, there are no fees for registering a TOD deed.
Although a simple document, it is recommended to fill out the TOD deed with the assistance of a lawyer to ensure compliance with legal requirements. The services provided by NYLAG lawyers, funded by the state government, are free.
Beneficiaries do not need to sign or be informed about the TOD deed unless there are special circumstances. However, it is still advisable to inform them for smoother execution.
If there is a will along with a TOD deed, the TOD deed takes precedence over the will regarding the property. The property will be transferred directly to the beneficiaries, excluding it from the distribution outlined in the will. In case of conflicting terms between the TOD deed and the will, it is recommended to revise the will.
Beneficiaries can be one or multiple individuals residing anywhere, not limited to the United States. The TOD deed only applies to the transfer of property and does not affect the handling of other assets specified in the will.
The New York Legal Assistance Group will conduct one-on-one consultations on May 30 at Council Member Sandra Ung’s office. Interested individuals should bring their ID and property documents. Date: Friday, May 30. Time: 11:00 AM to 4:00 PM. Location: 136-21 Latimer Place, Suite 1D, Flushing. Appointments are required, please call: 718-888-8747 (Council Member Sandra Ung’s office).