Introduction
TODDs Generally
In New York, Transfer on Death Deeds (TODDs) became effective on July 19, 2024, following their enactment earlier this year in a budget bill. They are codified under Real Property Law section 424.
A Transfer on Death (TOD) deed is a legal document that allows property owners to designate beneficiaries who will inherit their real estate upon the owner’s death. This type of deed bypasses the probate process, which can save beneficiaries time, money, and stress. The property owner retains full control over the property during their lifetime and can revoke or change the TOD deed at any time before their death.
The Question: Are Ancillary Transfer Docs Needed?
There are numerous unanswered questions surrounding TODDs. One question is starting to be answered: Are ancillary transfer documents (TP-584, RP-5217, or IT-2663) required when recording TODDs?
General Answer: Not Needed
Generally, counties are not requiring ancillary documents when recording TODDs. See Statements by Home Abstract Corp and Thoroughbred Title Services. Several New York counties have updated their procedures to state that ancillary documents are not required for TODDs: Chautauqua County, Cortland County, Monroe County, Richmond County, and Suffolk County.
N.B. Richmond county has given a tip to avoid recording ancillary documents.
The Exception: Erie County
There is already an exception: Erie County is requiring TP-584 but not RP-5217. (Note that we might learn about other exceptions.)
Counties
Chautauqua County
Recording a Transfer on Death Deed states:
Tax documents (TP-584, RP-5217, and IT-2663) will not be required to record a T.O.D.D. as the transfer has not yet occurred, and there is no legislation requiring it at this time.
Cortland County
A July 17, 2024 PDF on the Cortland County Clerk's website states, "Not Required: TP-584, RP-5217 or IT-2663." However, it also notes, "My office has not received any official correspondence from New York State Taxation and Finance nor Real Property in regards to what their expectations are with this amendment."
Erie County
I learned from a colleague that Erie County is requiring form TP-584 but not RP-5217. Their rationale is that RPL § 424 states that a TODD "shall be recorded . . . in the same manner as any other type of deed." I sent the Erie County Clerk Helpdesk a message asking for clarification because the statute also says that a TODD is "effective at the transferor's death." They curtly replied, "We are following the instructions of our legal deputy." They invited me to contact the legal deputy, so I called William Lorenz, Jr., and I left him a voice message.
Monroe County
Policy Statement for the Recording of Transfer on Death Deed, last revised July 30, 2024, states, "Discussions with NYS Tax & Finance have indicated that there is no expectation of a TP584/RP5217 with this recording."
Richmond County
Policy Statement for the Recording of Transfer on Death “Deeds” (TODD), updated August 1, 2024, states:
This Office has been made aware that the New York City Department of Finance is not requiring the filing of transfer documents when a Transfer on Death 'Deed' [Real Property Law § § 424] (hereinafter 'TODD') is presented to the City Register for recording.
Guided by the policy of the New York City Department of Finance, this Office—as County Register for Richmond County—likewise will not require transfer documents for the recording of TODD.
Recording Tips from the Richmond County Clerk
Richmond County gives good advice on recording a TODD. It recommends selecting "other" when recording a TODD because selecting "deed" will require ancillary documents. The Richmond County Clerk's website states:
Whereas Real Property Law § 424 appears to not create a present conveyance of an interest in real property, the TODD should be submitted as document type “other” when preparing a Richmond County Endorsement Page. Doing so will require the payment of statutorily mandated recording fees only.
Lastly, as it has been the long-standing policy and practice of the Office of the Richmond County Clerk that we will not substitute our legal judgement for the legal judgment of attorneys representing the parties to a transaction, persons intending to record the instrument as a “deed” should select document type “deed” when preparing a Richmond County Endorsement Page. However, doing so will require the submission of all transfer documents typically associated with a deed (along with the filing fees and taxes—if any-- for those associated documents) and statutorily mandated recording fees.
Suffolk County
The Suffolk County Clerk's website states, "Ancillary transfer documents (RP-5217, TP-584, CPF), shall not be required when recording."
Westchester County
Thoroughbred Title Services informs that Westchester County has a new document type:
Title Companies
Home Abstract Corp
Home Abstract Corp informs that all counties in New York will not require ancillary documents:
TODDs can be recorded without any accompanying TP 484, RP 5217 or ACRIS Transfer Tax Documents (collectively “Transfer Tax Forms”) in all New York Counties. NOTE – The Offices of all County Clerks and City Registers in New York State are updating their recording procedures specifically related to TODDs so as to permit recordings without the Transfer Tax Forms. . . .
Thoroughbred Title Services
Thoroughbred Title Services states, "You will NOT need a TP-584 or RP-5217 to record it."
My Thoughts
The removal of the requirement for ancillary transfer documents when recording TOD deeds in New York simplifies the recording process significantly. Without the need for forms like TP-584, RP-5217, or IT-2663, the administrative burden on property owners and their legal representatives is reduced. This change can expedite the transfer process, aligning with the law’s intent to provide an accessible and cost-effective method for individuals, particularly those with limited financial resources, to transfer real estate upon death.
Consequently, I think that Chautauqua County has the right interpretation: "Tax documents (TP-584, RP-5217, and IT-2663) will not be required to record a T.O.D.D. as the transfer has not yet occurred, and there is no legislation requiring it at this time." I also think that Erie County's interpretation myopically focuses on a few words in RPL § 424 while ignoring the many ways the statute distinguishes TODDs from traditional deeds.
It is important to remember that TODDs in New York are a recent development, and we are continually learning more about their implementation and implications. The Cortland County notice's observation is important to keep in mind: "As with implementation of a change in the law, information sometimes becomes available following the effective date."
If you're interested in learning more about TODDs, I will be publishing an ebook on them:
Hani Sarji
New York lawyer who cares about people, is fascinated by technology, and is writing his next book, Estate of Confusion: New York.
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