New York Transfer-on-Death Deed

At a glance

How the deed works

New York only recently began allowing transfer-on-death deeds. Real Property Law § 424, added in 2024 and effective July 19, 2024, lets an owner name a beneficiary who receives the real property automatically at the owner's death, keeping it out of probate. The beneficiary gets no control or claim during the owner's life, and the owner keeps full ownership. Because the statute is new, confirming current practice with the county clerk or recording office is especially worthwhile.

New York's execution requirements are stricter than most TOD-deed states. Under § 424 the transferor must sign in the presence of two witnesses who witness the signing at the same time, and the deed must be acknowledged before a notary public. The transferor must have the same capacity required to make a will. The deed must be recorded, before the transferor's death, in the public records of the county clerk's office where the property is located.

The beneficiary need not be notified or accept while the owner is alive. This is educational information, not legal advice; anyone considering a New York TOD deed should consult an attorney licensed in New York or the county clerk's office to confirm the requirements.

Recording & execution requirements

A transfer-on-death deed only works if it is executed and recorded correctly. In New York:

• Recording before death: Must be recorded before the transferor's death.
• Governing statute: N.Y. Real Prop. Law § 424 N.Y. Real Property Law § 424 — Transfer on death deed · enacted 2024, effective July 19, 2024.

Changing or revoking the deed

A recorded New York TOD deed is fully revocable during the transferor's life, even if the deed or another document says it is irrevocable. The transferor revokes by executing (with the same witnessing and acknowledgment formalities) and recording, before death, either a new TOD deed or a separate instrument of revocation in the county records.

A will generally cannot revoke a recorded TOD deed, and where more than one TOD deed has been recorded for the same property, the last one recorded before death controls.

Mortgages, Medicaid & community property

Existing mortgages and liens

A TOD deed transfers the property subject to existing encumbrances. The beneficiary takes title burdened by any mortgage, tax lien, or judgment lien of record; recording the deed does not pay off or clear those debts, which remain attached to the property.

Medicaid estate recovery

A TOD deed does not shield the home from Medicaid estate recovery, and New York's estate-recovery rules are notably aggressive. New York Medicaid (administered through the Department of Health and local social services districts) may pursue recovery against a deceased recipient's estate, and whether recovery reaches property passing by this new TOD deed is a fact-specific and still-developing question. Anyone who relies on or may need Medicaid long-term-care benefits should consult an attorney and confirm current estate-recovery rules with the state agency before depending on a TOD deed.

Community property

New York is a common-law (separate-property) state. New York is a common-law (non-community-property) state, so no community-property survivorship regime interacts with a TOD deed. Married couples often hold real estate as tenants by the entirety, which passes automatically to the surviving spouse and generally takes priority over a TOD-deed beneficiary; a TOD deed is most useful for individually owned property.

State-specific quirks

Where to read next

• New York estate & inheritance tax — whether New York taxes what you leave behind, and the small-estate probate ceiling, each figure cited to the statute.
• The Executor & Heir’s Guide — the probate deadlines for New York, cited to the controlling statute.
• Funding a revocable trust — a common way to keep many kinds of property out of probate.
• ← Back to the transfer-on-death deed comparison

Sources & methodology