New York State has recently enacted legislation that now allows the usage of a “transfer on death” (“TOD”) deed. Joining 20+ states that have a similar deed in place, this significant change in estate planning allows a property owner to simplify the estate probate process by designating a beneficiary or beneficiaries to receive their real property upon their death by recording this new TOD deed.  

Currently, when someone passes away, the law allows heirs to sell the property no earlier than two years after the date of death, generally to allow for creditors of the estate to make a claim. Otherwise, someone would have to be appointed the executor or administrator before the property can be sold. Another way is to transfer the property into a trust and then the trustee would have the authority to sell, under the terms of the trust. Probate can be expensive and time-consuming, and waiting two years can be an eternity if there are debts, taxes and mortgages to pay.  

This new deed allows a property to be transferred to a designated beneficiary automatically upon the owner’s death. The owner retains ownership of the property during their lifetime and the deed is fully revocable, so if any circumstances change, the owner can make amendments. 

Similar to a will, the TOD must be executed by the transferor in the presence of two witnesses and a Notary Public. If the owner wants to change the beneficiary, a revocation must be executed and recorded.  

All cases are different and this is merely an option concerning estate planning.  This option may not be the best option for you but we are happy to answer any questions you might have.

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It’s been a summer of traveling for me and I have really enjoyed the freedom. This ties into estate planning because there is great peace of mind when traveling, knowing your affairs are in order back home. Unexpected things happen and preparation is key to less worry and stress. 

Speaking of traveling, if your teen is headed to college this year it’s a great time to get them a power of attorney and health care proxy. This is a quick and affordable process.

According to the HIPAA (the Health Insurance Portability and Accountability Act) and other privacy laws, your child must grant you written permission to be part of their care after the age of 18.

Without it, you may not have access to their medical records. With a health care proxy, your son or daughter can appoint you, your spouse or other guardians as their agent, so you can have access to their records, speak with their doctors, and make decisions about their medical care.

A power of attorney is equally important. While your child is at school, you may need to manage student loans, investment accounts, or other fiscal matters. 

If your child is going to college in another state, or even abroad, and they have an issue with their bank or other financial matter, as long as you have their power of attorney, you will be able to speak to the parties involved and help them from afar. Moreover, once they graduate, the POA and health care proxy can still be used until the adult child desires to change it.

And speaking of young adults, I want to introduce our two summer interns!

Neena Paulsen returns to us, she is a senior in high school and is working towards credit for senior classes. 

Talia Baker recently graduated from Babylon High School and will soon be attending the University of Binghamton. I met Talia earlier this Spring when judging a mock trial tournament! She was one of the lead attorneys. She is heading to college in a few weeks to study neuroscience but promises me she will come work for me again during her school breaks.

Both of our interns are smart and spectacular and we love the energy they bring to the firm. Not to mention the help they provide with documents and research, all while they learn the basics of a law office. 

Next month, we will explore the special needs trust, so if you have any questions, please send them along to me in advance.