What are Transfer on Death Deeds?

In July 2024, New York State passed legislation authorizing a new type of deed to transfer real estate after death. This type of deed is known as a Transfer on Death Deed or a TOD Deed. A TOD Deed enables property owners to designate beneficiaries who will automatically receive the specified real estate upon the owner's death. Thus, eliminating the need for court proceedings or creating a living trust to facilitate ownership. 

Transfer on Death Deeds provide a simple way to pass real estate to beneficiaries. A TOD Deed does not have any effect until death and can be revoked at any time. TOD Deeds avoid the fees and time delays that may be involved in the probate process. Multiple beneficiaries can be listed, and if desired, contingent beneficiaries can be listed as well. Additionally, the beneficiary obtaining the property will receive a step-up in tax basis. Meaning, the tax basis will be equivalent to the value of the property at the time of the owner's death.

TOD Deeds need to be signed before a notary public and two witnesses. They also must be recorded in the County Clerk's Office where the property is located.