Contrary to popular belief, estate planning goes far beyond simply creating a Will. A Transfer-On-Death (TOD) Deed is one of the many estate planning tools that can be used to ensure that your wishes are carried out and your beneficiaries are protected. Please continue reading as we explore the benefits of creating a TOD Deed and why connecting with a knowledgeable Rockland County Estate Planning Attorney is in your best interest.
What is a Transfer-On-Death Deed?
As of 2024, Transfer-On-Death (TOD) Deeds have been legally recognized and permitted in the state of New York. A TOD Deed allows property owners to maintain complete control of their real estate during their lifetime while designating one or more beneficiaries to inherit the property directly upon their death, bypassing Probate. Essentially, it doesn’t affect ownership rights until after death, meaning it can always be revoked. This offers a more streamlined process for property owners to manage the transfer of their assets upon their death.
What Are the Benefits?
One of the primary advantages of establishing a TOD is that it avoids the often lengthy and costly process of Probate. This is a court-supervised procedure that is typically required to distribute a deceased person’s assets, including real estate. By using a TOD Deed, the property avoids Probate and is automatically transferred to the named beneficiaries, saving you time, money, and potential legal complications.
Once the TOD Deed is executed, the property can be transferred to the designated beneficiaries upon the owner’s death. This is a much faster process than Probate, which can span a few months to a year, depending on the complexity of the estate and any potential disputes. Alongside the benefits of a quick transfer, a TOD Deed offers flexibility. As mentioned above, you can retain full ownership and control of the property during your lifetime. You can revoke or change the terms of the TOD Deed at any point. This means you can choose who will inherit your property, ensuring that your wishes are properly carried out after your passing. Furthermore, the property remains shielded from credit claims during your lifetime, and as the transfer to beneficiaries takes place after death, it continues to be protected from creditors even after you pass away.
Although a TOD Deed offers a simple and effective way to transfer property upon death, it’s important to note that it may not be a suitable option for everyone. Those with complex estate planning needs to those who wish to impose conditions or restrictions on the transfer of their property may need to consider alternative routes, such as creating a trust. As such, it’s advisable to consult with a seasoned estate planning attorney from The Lauterbach Law Firm, who can help determine the best approach for your unique circumstances. Connect with our firm today to learn how we can assist you.
