Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
Senator ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
Establishes Uniform Real Property Transfer on Death Act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning transfer on death deeds and supplementing Title 3B of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the Uniform Real Property Transfer on Death Act.
2. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
Beneficiary means a person that receives property under a transfer on death deed.
Designated beneficiary means a person designated to receive property in a transfer on death deed.
Joint owner means an individual who owns property concurrently with one or more other individuals with a right of survivorship, and includes a joint tenant. Joint owner does not include a tenant in common.
Person means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.
Property means an interest in real property located in this State which is transferable on the death of the owner.
Transfer on death deed means a deed authorized under P.L. , c. (pending before the Legislature as this bill).
Transferor means an individual who makes a transfer on death deed.
3. a. An individual 18 or more years of age and of sound mind may transfer property to one or more beneficiaries effective at the transferors death by a transfer on death deed.
b. A transfer on death deed:
(1) is revocable even if the deed or another instrument contains a provision to the contrary;
(2) is nontestamentary;
(3) except as otherwise provided in paragraph (4) of this subsection, shall contain the essential elements and formalities of a properly recorded inter vivos deed and be acknowledged in accordance with R.S.46:14-2.1;
(4) shall state that the transfer to the designated beneficiary is to occur at the transferors death; and
(5) shall be recorded before the transferors death in the public records with the County Clerk of the county where the property is located.
c. A transfer on death deed is effective without:
(1) notice or delivery to or acceptance by the designated beneficiary during the transferors life; or
(2) consideration.
4. a. Subject to subsection b. of this section, an instrument is effective to revoke a recorded transfer on death deed, or any part of it, only if the instrument:
(1) is acknowledged by the transferor after the acknowledgement of the deed being revoked and recorded before the transferors death in the public records with the County Clerk of the county where the deed is recorded; and
(2) is one of the following:
(a) a subsequent transfer on death deed that revokes the deed, or part of the deed, expressly or by inconsistency;
(b) an instrument of revocation that expressly revokes the deed or part of the deed; or
(c) an inter vivos deed that expressly revokes the transfer on death deed or part of the deed.
b. If a transfer on death deed 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 revoked only if it is revoked by all of the living joint owners.
c. After a transfer on death deed is recorded, it may not be revoked by a revocatory act on the deed. For purposes of this subsection, a revocatory act includes burning, tearing, obliterating, or destroying the deed or any part of it
d. This section shall not limit the effect of an inter vivos transfer of the property.
5. During the transferors life, a transfer on death deed shall not:
a. affect an interest or right of:
(1) the transferor or any other owner, including the right to transfer or encumber the property;
(2) a transferee, even if the transferee has an actual or constructive notice of the deed;
(3) a secured or unsecured creditor or future creditor of the transferor, even if the creditor has actual or constructive notice of the deed;
b. affect the transferors or designated beneficiarys eligibility for any form of public assistance;
c. create a legal or equitable interest in favor of the designated beneficiary; or
d. subject the property to the claims or process of a creditor of the designated beneficiary.
6. a. Except as provided in the transfer on death deed, this section, or N.J.S.3B:3-14, on the death of the transferor, the following shall apply to the property that is the subject of a transfer on death deed and owned by the transferor at death:
(1) Subject to paragraph (2), the interest in the property is transferred to the designated beneficiary in accordance with the deed.
(2) 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.
(3) Subject to paragraph (4), concurrent interests are transferred to the beneficiaries in equal and undivided shares with no right of survivorship.
(4) 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.
b. A beneficiary shall take the property subject to all conveyances, encumbrances, assignments, contracts, mortgages, liens, and other interests to which the property is subject at the transferors death. For purposes of this subsection, the recording of the transfer on death deed is deemed to have occurred at the transferors death.
c. If the transferor is a joint owner and is:
(1) survived by one or more other joint owners, the property that is subject of the transfer on death deed belongs to the surviving joint owners or owners with right of survivorship; or
(2) the last surviving joint owner, the transfer on death deed is effective.
d. A transfer on death deed transfers property without covenant or warranty of title even if the deed contains a contrary provision.
e. A beneficiary may disclaim all or part of the beneficiarys interest in accordance with the requirements of a disclaimer as provided for in chapter 9 of Title 3B of the New Jersey Statutes.
7. a. To the extent the transferors probate estate is insufficient to satisfy an allowed claim against the estate or a statut