NY TOD Deed: Not for Out-of-State Real Property

A Transfer on Death deed (TODD) in New York does not apply to out-of-state property. According to RPL § 424(1)(e), the term “property” refers to real property in New York State that can be transferred upon the owner’s death. This rule simplifies jurisdictional issues for out-of-state property, but it also means that a New Yorker who has real property outside of New York will have to use another tool, such as a revocable trust, to avoid ancillary probate in the other state.

For example, if a New Yorker owns a vacation home in Florida, they would need to establish a revocable living trust and transfer the title of the Florida property into the trust. By doing so, the property is owned by the trust, not the individual, which avoids the need for ancillary probate in Florida. This can save significant time and legal expenses, as ancillary probate requires separate proceedings in each state where the property is located.