New York Law Now Permits Transfer on Death Deed

Ever wonder if you can name a beneficiary for your home?

Now you can.

Owners of New York real property now have a new option for transferring their property upon death. New York law now permits a new type of deed called a "Transfer on Death" deed ("TOD Deed") where an owner of real property can name a beneficiary to receive the property upon his or her death.

These new deeds work the same way as any other paid-on-death account that transfers assets without the need for probate or any other type of judicial intervention.

Hopefully this new option will prevent owners from making the common mistake of adding a person to a deed as a co-owner, which can have unintended gift tax issues and cause other legal woes.

The TOD Deed will also preserve the step-up in basis for the beneficiary.