For most families, a home is one of the most valuable assets they own — and one they want to pass smoothly to their loved ones. But when property owners die without proper planning, real estate often gets tied up in probate court, causing delays, expenses, and unnecessary stress for heirs. Fortunately, estate planning offers strategies to avoid probate. Two of the most common tools are transfer on death (TOD) deeds and living trusts.

Both options can help real estate transfer outside of probate, but they serve different purposes and carry unique advantages and drawbacks. Understanding these differences can help you decide which is right for your situation. And because state laws vary and estate planning can be complex, working with an experienced attorney is essential to make the best choice for your family.

What Is a Transfer on Death Deed?

A transfer on death deed (TOD deed), sometimes called a beneficiary deed, is a legal document that allows you to name a beneficiary who will inherit your property when you die.

Key features of TOD deeds include:

• Simple setup: You complete and record the deed while you are alive, designating who inherits the property.
• No impact during your lifetime: You remain the property’s owner and can sell, refinance, or revoke the deed at any time.
• Avoids probate: When you die, the property passes directly to the named beneficiary without court involvement.
• Limited scope: A TOD deed only applies to real estate, not other assets like bank accounts or investments.

TOD deeds are attractive because of their simplicity and low cost. However, they have limitations that may not make them the best fit for more complex estates.

What Is a Living Trust?

A living trust is a more comprehensive estate planning tool. It is a legal entity you create during your lifetime to hold ownership of your assets, including real estate, bank accounts, and investments.

Key features of living trusts include:

• Comprehensive coverage: You can place many types of assets in a trust, not just real estate.
• Avoids probate: Like TOD deeds, trust assets transfer directly to beneficiaries without court involvement.
• Control and flexibility: You set rules for how and when beneficiaries receive assets. For example, you can delay distributions until children reach a certain age.
• Incapacity planning: If you become unable to manage your affairs, a successor trustee can step in without court intervention.
• Privacy: Unlike wills, trusts are not public record, keeping family matters private.

Living trusts require more effort and upfront cost than TOD deeds, but they offer greater flexibility and protection, especially for families with diverse assets or complex needs.

Comparing TOD Deeds vs. Living Trusts

Both TOD deeds and living trusts avoid probate, but their differences can impact your estate plan significantly.

1. Simplicity vs. Flexibility

• TOD Deed: Easy and inexpensive to create, best for individuals who only want to transfer real estate.
• Living Trust: Requires more setup but provides flexibility to manage multiple assets and create detailed distribution plans.

2. Asset Coverage

• TOD Deed: Only applies to one piece of real estate per deed.
• Living Trust: Can hold real estate, bank accounts, stocks, business interests, and more.

3. Control Over Inheritance

• TOD Deed: Transfers property outright to beneficiaries immediately upon death. Beneficiaries have full ownership with no restrictions.
• Living Trust: Allows you to set conditions, such as staggered distributions or restrictions to protect young or financially inexperienced heirs.

4. Incapacity Planning

• TOD Deed: Offers no protection if you become incapacitated. A court may need to appoint a guardian to manage your property.
• Living Trust: A successor trustee can manage your assets if you cannot, avoiding court intervention.

5. Risk of Conflicts

• TOD Deed: If you name multiple beneficiaries, disputes can arise over how to divide or manage the property.
• Living Trust: Provides clear instructions, reducing conflict and giving trustees authority to manage property fairly.

6. Privacy

• TOD Deed: Becomes public record when filed.
• Living Trust: Remains private, shielding details from the public.

7. Cost and Maintenance

• TOD Deed: Inexpensive and requires little ongoing maintenance.
• Living Trust: Higher upfront costs but provides long-term benefits, flexibility, and control.

Which One Should You Use?

The choice between a TOD deed and a living trust depends on your circumstances:

• A TOD deed may be right for you if:
  • You own a single property.
  • You want a quick, low-cost way to pass it to a beneficiary.
  • Your estate is otherwise simple.
• A living trust may be right for you if:
  • You own multiple properties or diverse assets.
  • You want to protect minor children or set conditions on inheritance.
  • You want incapacity planning built into your estate plan.
  • You want to minimize family conflicts and maintain privacy.

For many families, a living trust is the more powerful and comprehensive choice. However, TOD deeds can be useful in limited scenarios when simplicity is the primary goal.

Why You Need an Estate Planning Attorney

While TOD deeds seem simple, mistakes in execution — such as failing to record the deed correctly — can render them invalid. Similarly, trusts must be carefully drafted and funded to be effective. An experienced estate planning attorney ensures:

• All documents comply with New York state law.
• Your trust or deed is executed properly.
• Tax implications are minimized.
• Your estate plan reflects your goals and protects your heirs.

DIY estate planning often leads to costly errors. Professional guidance ensures your plan works exactly as you intend.

Why Choose The Estate Planning Law Firm of Figeroux & Associates?

When it comes to protecting your property and family, the choice of attorney matters. In Brooklyn, the trusted name is The Estate Planning Law Firm of Figeroux & Associates.

Here’s why:

• Extensive Experience: The firm has decades of experience handling estate planning, wills, trusts, and probate matters in New York.
• Comprehensive Services: Whether you need a TOD deed, a living trust, or a full estate plan, they provide tailored legal solutions.
• Personalized Approach: Every family’s situation is unique. The firm takes the time to understand your goals and craft a plan that fits your needs.
• Conflict Prevention: Their attorneys draft clear, enforceable documents that minimize disputes and ensure your wishes are carried out.
• Convenient Location: Located at 26 Court Street, Suite 701, Brooklyn, NY 11242, they are easily accessible to clients across Brooklyn and New York City.
• Accessible Resources: Visit www.askthelawyer.us or call 855-768-8845 to schedule a consultation or learn more about their services.

Conclusion

Both transfer on death deeds and living trusts are effective tools for avoiding probate, but they serve different purposes. A TOD deed is simple and low-cost, ideal for straightforward estates. A living trust offers more flexibility, asset protection, and control — making it the better choice for families with multiple assets or more complex needs.

Whichever option you choose, working with an experienced attorney ensures your plan is legally sound and aligned with your goals. For Brooklyn residents, the right choice is The Estate Planning Law Firm of Figeroux & Associates. Their expertise, compassion, and dedication to client success make them the trusted partner for estate planning in New York.

Contact them today at www.askthelawyer.us or call 855-768-8845 to protect your home, your assets, and your family’s future.