The Heirs Property Protection and Deed Theft Prevention Act

The Heirs Property Protection and Deed Theft Prevention Act of 2024 is a new piece of litigation in New York State that allows property owners to transfer their property upon death using a Transfer on Death Deed (TODD). This act, effective on July 19, 2024, aims to make property transfer easier and prevent deed theft.

What is a Transfer on Death Deed (TODD)?

A Transfer on Death Deed (TODD) is a legal document that allows property owners in New York to name a beneficiary who will inherit their property upon their death without going through probate. This method is an alternative to creating a trust and can simplify the process of transferring property to one’s heirs.

What Are the Key Requirements of a TODD?

• Capacity to Execute a Will: The person making the TODD (the transferor) must be at least 18 years old and mentally competent.
• Essential Elements: The TODD must have all the elements of a properly recorded deed, except for delivery, acceptance, and consideration.
• Death Transfer Statement: The deed must clearly state that the transfer will take place upon the transferor’s death.
• Witnesses and Notary: The TODD must be signed and in the presence of two witnesses and acknowledged before a notary public.
• Recording: The TODD must be recorded in the county where the property is located before the transferor’s death.

Revoking a TODD

To revoke a TODD, one of the following documents has to be recorded:

1. A new TODD that expressly revokes the previous one.
2. An instrument of revocation.
3. An inter vivos deed that revokes the TODD.

The revocation must be acknowledged and recorded before the transferor's death to be effective.

Important Things to Consider

The transferor can’t use an agent under a power of attorney to execute a TODD. In addition, the witnesses and notary can't be beneficiaries named in the TODD. The TODD has to be recorded before the transferor’s death, or it won't be valid. The act of revoking the TODD must follow specific procedures that are outlined in the law. It is also important to note that a TODD made before July 19, 2024, is valid if the transferor dies on or after that date.

What Are the Benefits of Using a TODD?

• Avoids Probate: A TODD allows for property to be transferred without the need for probate, saving both time and money.
• Simplicity: Setting up a TODD is simpler and less expensive than creating a trust.
• Control: The transferor retains control of the property during their lifetime and can revoke the TODD if circumstances change.

The Heirs Property Protection and Deed Theft Prevention Act of 2024 provides a new and efficient way for New York State property owners to transfer their property upon death. By using a Transfer on Death Deed, individuals can ensure that their property is passed on to their chosen beneficiaries without the hassle of going through probate, offering a straightforward alternative to trusts.

For further questions or inquiries, feel free to reach out to estate planning attorney, Inna Fershteyn, at the Law Office of Inna Fershteyn or call (718) 333- 2394.