The New York State Real Property Law has been amended by the addition of new section 424. Section 424 introduces the use of a Transfer on Death Deed (TOD) and will take effect on 7/19/24.
The main benefit of the TOD deed is that property does not have to pass through the probate process to transfer to its beneficiaries.
Several key factors to New Section 424
An individual may transfer their property to one or more beneficiaries with the recording of a TOD deed. The transfer to the designated beneficiary becomes effective at the time of the transferor’s death.
A TOD deed must be signed by 2 witnesses who were present and witnessed the execution of the deed.
A TOD deed is revocable and can be revoked by the recording of new document executed by the transferor. A TOD deed CANNOT be revoked by will.
A TOD deed must be recorded in the county clerk’s office where the property in question is located prior to the death of the transferor.
A TOD deed shall be effective without the notice or delivery to or acceptance by a designated beneficiary.
After the recording of a TOD deed, a transferor retains their right to transfer or encumber the property in question as they see fit during their lifetime.
If a designated beneficiary does not survive the transferor, the transfer lapses.
A beneficiary takes the property subject to all liens, encumbrances and other interests which the property is subject to upon the death of the transferor.
A beneficiary may renounce all or part of their interest in the same manner as if the interest was transferred in a will.