Bill > S3679

This bill establishes the "Uniform Real Property Transfer on Death Act," which allows individuals aged 18 or older and of sound mind to designate beneficiaries to receive their real property upon their death through a "transfer on death deed." This deed is revocable, does not require consideration or acceptance by the beneficiary during the transferor's lifetime, and must be recorded with the County Clerk before the transferor's death to be effective. The act defines key terms such as "beneficiary" (the person receiving the property), "designated beneficiary" (the person named in the deed), "joint owner" (someone who owns property with another person with a right of survivorship), "person" (broadly defined to include individuals and entities), "property" (real estate in New Jersey), "transfer on death deed," and "transferor" (the person making the deed). While the transfer on death deed is in effect, it does not affect the transferor's rights to the property, nor does it impact the beneficiary's eligibility for public assistance or subject the property to the beneficiary's creditors. The deed can be revoked by a subsequent recorded instrument, such as another transfer on death deed or a specific revocation document, and revocation by one joint owner does not affect the deed for others. Upon the transferor's death, the property transfers to the designated beneficiary, provided they survive the transferor, and the beneficiary receives the property subject to any existing encumbrances or liens. The act also clarifies that the property transferred via a transfer on death deed can be used to satisfy the transferor's estate debts if the probate estate is insufficient, with proceedings to enforce this liability to be commenced within 18 months of the transferor's death. This new law will take effect 60 days after enactment and applies to deeds made on or after that date by individuals who die on or after the effective date.