Bill > A4539

Introduced Session

This bill establishes the "Uniform Real Property Transfer on Death Act" (act). The act was promulgated by the Uniform Law Commission in 2009. The act permits an individual to transfer property to one or more designated beneficiaries at the transferor's death by means of a transfer on death (TOD) deed. A "designated beneficiary" means a person designated to receive property in a TOD deed. A transfer on death deed is a revocable instrument and is nontestamentary. Further, the instrument is required to contain the essential elements and formalities of a properly recorded inter vivos deed and be acknowledged in accordance with State law. A transfer on death deed is effective without notice or delivery to the designated beneficiary, acceptance by the designated beneficiary, or consideration. The bill applies to all TOD deeds made before, on, or after the effective date of the bill by a transferor dying on or after the effective date of the bill. The following rules apply to the property that is subject of a TOD deed and owned by the transferor at death: (1) the interest in the property is transferred to the designated beneficiary in accordance with the deed. The interest of a designated beneficiary is contingent on the designated beneficiary surviving the transferor. The interest of a designated beneficiary that fails to survive the transferor lapses. (2) concurrent interests are transferred to the beneficiaries in equal and undivided shares with no right of survivorship. If the transferor has identified two or more designated beneficiaries to receive concurrent interest in the property, the share of one which lapses or fails for any reason is transferred to the other, or to the others in proportion to the interest of each in the remaining part of the property held concurrently. An individual may revoke a recorded TOD deed, or any part of the deed, if the instrument: (1) is one of the following: (a) a subsequent TOD deed that revokes the deed in whole or part expressly or by inconsistency; (b) an instrument of revocation that expressly revokes the deed in whole or part; or (c) an inter vivos deed that expressly revokes the TOD deed in whole or in part; and (2) is acknowledged by the transferor after the acknowledgement of the deed being revoked and recorded in accordance with State law. A TOD deed prepared under the bill does not: (1) affect an interest or right of the transferor or any other owner, including the right to transfer or encumber the property; (2) affect an interest or right of a transferee, even if the transferee has an actual or constructive notice of the deed; (3) affect an interest of right of a secured or unsecured creditor or future creditor of the transferor, even if the creditor has actual or constructive notice of the deed; (4) affect the transferor's or designated beneficiary's eligibility for any form of public assistance; (5) create a legal or equitable interest in favor of the designated beneficiary; or (6) subject the property to the claims or process of a creditor of the designated beneficiary. If a transfer is made by more than one transferor: (1) revocation by a transferor does not affect the deed as to the interest of another transferor; and (2) a deed of joint owners is only revoked if it is revoked by all of the living joint owners. If a transferor is a joint owner and is: (1) survived by one or more other joint owners, the property that is subject to the TOD deed belongs to the surviving joint owners or owners with right of survivorship; or (2) the last surviving joint owner, the TOD deed is effective. Finally, the bill provides that if a transferor's probate estate is insufficient to satisfy allowed claims, the estate is permitted to enforce the liability against the property transferred.

Committee Categories

Reginald Atkins (D)*,  Anthony Verrelli (D)*, 

Introduced, Referred to Assembly Housing Committee (on 06/13/2024)

Official Document