| 1 | 1 | | SENATE, No. 3376 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED JUNE 3, 2024 |
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| 2 | 2 | | |
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| 3 | 3 | | SENATE, No. 3376 |
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| 5 | 5 | | STATE OF NEW JERSEY |
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| 7 | 7 | | 221st LEGISLATURE |
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| 10 | 10 | | |
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| 11 | 11 | | INTRODUCED JUNE 3, 2024 |
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| 15 | 15 | | 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. |
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| 18 | 18 | | |
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| 19 | 19 | | Sponsored by: |
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| 20 | 20 | | |
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| 21 | 21 | | Senator SHIRLEY K. TURNER |
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| 22 | 22 | | |
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| 23 | 23 | | District 15 (Hunterdon and Mercer) |
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| 24 | 24 | | |
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| 25 | 25 | | Senator ANGELA V. MCKNIGHT |
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| 26 | 26 | | |
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| 27 | 27 | | District 31 (Hudson) |
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| 37 | 37 | | SYNOPSIS |
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| 38 | 38 | | |
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| 39 | 39 | | Establishes "Uniform Real Property Transfer on Death Act." |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | CURRENT VERSION OF TEXT |
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| 44 | 44 | | |
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| 45 | 45 | | As introduced. |
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| 46 | 46 | | |
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| 47 | 47 | | |
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| 48 | 48 | | |
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| 49 | 49 | | 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 transferor's 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 transferor's death; and (5) shall be recorded before the transferor's 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 transferor's 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 transferor's 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 transferor's 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 transferor's or designated beneficiary's 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 transferor's death. For purposes of this subsection, the recording of the transfer on death deed is deemed to have occurred at the transferor's 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 beneficiary's 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 transferor's probate estate is insufficient to satisfy an allowed claim against the estate or a statutory allowance to a surviving spouse or child, the estate may enforce the liability against the property transferred at the transferor's death by a transfer on death deed. b. If more than one property is transferred by one or more transfer on death deeds, the liability under subsection a. is appropriated among the properties in proportion to their net values at the transferor's death. c. A proceeding to enforce the liability under this section shall be commenced no later than 18 months after the transferor's death. 8. P.L. , c. (C. ) (pending before the Legislature as this bill) shall not affect any method of the transfer of property otherwise permitted under the laws of this State. 9. P.L. , c. (C. ) (pending before the Legislature as this bill) limits, modifies, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. s.7001, et seq., but does not modify, limit, or supersede s.101(c) of that act, 15 U.S.C. s.7001(c), or authorize electronic delivery of any of the notices described in s.103(b) of that act, 15 U.S.C. s.7003(b). 10. If any provision of this act or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. 11. This act shall take effect immediately and shall apply to a transfer on death deed made before, on, or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) by a transferor dying on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). STATEMENT 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. |
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| 50 | 50 | | |
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| 51 | 51 | | An Act concerning transfer on death deeds and supplementing Title 3B of the New Jersey Statutes. |
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| 52 | 52 | | |
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| 55 | 55 | | Be It Enacted by the Senate and General Assembly of the State of New Jersey: |
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| 56 | 56 | | |
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| 58 | 58 | | |
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| 59 | 59 | | 1. This act shall be known and may be cited as the "Uniform Real Property Transfer on Death Act." |
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| 61 | 61 | | |
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| 62 | 62 | | |
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| 63 | 63 | | 2. As used in P.L. , c. (C. ) (pending before the Legislature as this bill): |
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| 64 | 64 | | |
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| 65 | 65 | | "Beneficiary" means a person that receives property under a transfer on death deed. |
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| 66 | 66 | | |
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| 67 | 67 | | "Designated beneficiary" means a person designated to receive property in a transfer on death deed. |
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| 68 | 68 | | |
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| 69 | 69 | | "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. |
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| 70 | 70 | | |
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| 71 | 71 | | "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. |
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| 72 | 72 | | |
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| 73 | 73 | | "Property" means an interest in real property located in this State which is transferable on the death of the owner. |
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| 74 | 74 | | |
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| 75 | 75 | | "Transfer on death deed" means a deed authorized under P.L. , c. (pending before the Legislature as this bill). |
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| 76 | 76 | | |
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| 77 | 77 | | "Transferor" means an individual who makes a transfer on death deed. |
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| 80 | 80 | | |
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| 81 | 81 | | 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 transferor's death by a transfer on death deed. |
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| 82 | 82 | | |
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| 83 | 83 | | b. A transfer on death deed: |
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| 84 | 84 | | |
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| 85 | 85 | | (1) is revocable even if the deed or another instrument contains a provision to the contrary; |
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| 86 | 86 | | |
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| 87 | 87 | | (2) is nontestamentary; |
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| 88 | 88 | | |
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| 89 | 89 | | (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; |
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| 90 | 90 | | |
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| 91 | 91 | | (4) shall state that the transfer to the designated beneficiary is to occur at the transferor's death; and |
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| 92 | 92 | | |
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| 93 | 93 | | (5) shall be recorded before the transferor's death in the public records with the County Clerk of the county where the property is located. |
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| 94 | 94 | | |
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| 95 | 95 | | c. A transfer on death deed is effective without: |
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| 96 | 96 | | |
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| 97 | 97 | | (1) notice or delivery to or acceptance by the designated beneficiary during the transferor's life; or |
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| 98 | 98 | | |
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| 99 | 99 | | (2) consideration. |
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| 100 | 100 | | |
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| 101 | 101 | | |
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| 102 | 102 | | |
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| 103 | 103 | | 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: |
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| 104 | 104 | | |
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| 105 | 105 | | (1) is acknowledged by the transferor after the acknowledgement of the deed being revoked and recorded before the transferor's death in the public records with the County Clerk of the county where the deed is recorded; and |
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| 106 | 106 | | |
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| 107 | 107 | | (2) is one of the following: |
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| 108 | 108 | | |
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| 109 | 109 | | (a) a subsequent transfer on death deed that revokes the deed, or part of the deed, expressly or by inconsistency; |
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| 110 | 110 | | |
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| 111 | 111 | | (b) an instrument of revocation that expressly revokes the deed or part of the deed; or |
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| 112 | 112 | | |
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| 113 | 113 | | (c) an inter vivos deed that expressly revokes the transfer on death deed or part of the deed. |
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| 114 | 114 | | |
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| 115 | 115 | | b. If a transfer on death deed is made by more than one transferor: |
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| 116 | 116 | | |
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| 117 | 117 | | (1) revocation by a transferor does not affect the deed as to the interest of another transferor; and |
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| 118 | 118 | | |
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| 119 | 119 | | (2) a deed of joint owners is revoked only if it is revoked by all of the living joint owners. |
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| 120 | 120 | | |
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| 121 | 121 | | 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 |
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| 122 | 122 | | |
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| 123 | 123 | | d. This section shall not limit the effect of an inter vivos transfer of the property. |
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| 124 | 124 | | |
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| 125 | 125 | | |
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| 126 | 126 | | |
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| 127 | 127 | | 5. During the transferor's life, a transfer on death deed shall not: |
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| 128 | 128 | | |
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| 129 | 129 | | a. affect an interest or right of: |
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| 130 | 130 | | |
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| 131 | 131 | | (1) the transferor or any other owner, including the right to transfer or encumber the property; |
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| 132 | 132 | | |
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| 133 | 133 | | (2) a transferee, even if the transferee has an actual or constructive notice of the deed; |
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| 134 | 134 | | |
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| 135 | 135 | | (3) a secured or unsecured creditor or future creditor of the transferor, even if the creditor has actual or constructive notice of the deed; |
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| 136 | 136 | | |
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| 137 | 137 | | b. affect the transferor's or designated beneficiary's eligibility for any form of public assistance; |
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| 138 | 138 | | |
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| 139 | 139 | | c. create a legal or equitable interest in favor of the designated beneficiary; or |
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| 140 | 140 | | |
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| 141 | 141 | | d. subject the property to the claims or process of a creditor of the designated beneficiary. |
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| 142 | 142 | | |
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| 143 | 143 | | 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: |
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| 144 | 144 | | |
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| 145 | 145 | | (1) Subject to paragraph (2), the interest in the property is transferred to the designated beneficiary in accordance with the deed. |
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| 146 | 146 | | |
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| 147 | 147 | | (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. |
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| 148 | 148 | | |
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| 149 | 149 | | (3) Subject to paragraph (4), concurrent interests are transferred to the beneficiaries in equal and undivided shares with no right of survivorship. |
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| 150 | 150 | | |
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| 151 | 151 | | (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. |
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| 152 | 152 | | |
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| 153 | 153 | | 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 transferor's death. For purposes of this subsection, the recording of the transfer on death deed is deemed to have occurred at the transferor's death. |
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| 154 | 154 | | |
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| 155 | 155 | | c. If the transferor is a joint owner and is: |
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| 156 | 156 | | |
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| 157 | 157 | | (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 |
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| 158 | 158 | | |
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| 159 | 159 | | (2) the last surviving joint owner, the transfer on death deed is effective. |
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| 160 | 160 | | |
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| 161 | 161 | | d. A transfer on death deed transfers property without covenant or warranty of title even if the deed contains a contrary provision. |
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| 162 | 162 | | |
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| 163 | 163 | | e. A beneficiary may disclaim all or part of the beneficiary's interest in accordance with the requirements of a disclaimer as provided for in chapter 9 of Title 3B of the New Jersey Statutes. |
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| 164 | 164 | | |
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| 165 | 165 | | |
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| 166 | 166 | | |
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| 167 | 167 | | 7. a. To the extent the transferor's probate estate is insufficient to satisfy an allowed claim against the estate or a statutory allowance to a surviving spouse or child, the estate may enforce the liability against the property transferred at the transferor's death by a transfer on death deed. |
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| 168 | 168 | | |
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| 169 | 169 | | b. If more than one property is transferred by one or more transfer on death deeds, the liability under subsection a. is appropriated among the properties in proportion to their net values at the transferor's death. |
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| 170 | 170 | | |
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| 171 | 171 | | c. A proceeding to enforce the liability under this section shall be commenced no later than 18 months after the transferor's death. |
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| 172 | 172 | | |
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| 173 | 173 | | 8. P.L. , c. (C. ) (pending before the Legislature as this bill) shall not affect any method of the transfer of property otherwise permitted under the laws of this State. |
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| 174 | 174 | | |
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| 175 | 175 | | |
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| 176 | 176 | | |
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| 177 | 177 | | 9. P.L. , c. (C. ) (pending before the Legislature as this bill) limits, modifies, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. s.7001, et seq., but does not modify, limit, or supersede s.101(c) of that act, 15 U.S.C. s.7001(c), or authorize electronic delivery of any of the notices described in s.103(b) of that act, 15 U.S.C. s.7003(b). |
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| 178 | 178 | | |
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| 179 | 179 | | |
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| 180 | 180 | | |
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| 181 | 181 | | 10. If any provision of this act or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. |
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| 182 | 182 | | |
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| 183 | 183 | | |
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| 184 | 184 | | |
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| 185 | 185 | | 11. This act shall take effect immediately and shall apply to a transfer on death deed made before, on, or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) by a transferor dying on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). |
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| 186 | 186 | | |
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| 187 | 187 | | |
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| 188 | 188 | | |
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| 189 | 189 | | |
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| 190 | 190 | | |
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| 191 | 191 | | STATEMENT |
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| 192 | 192 | | |
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| 193 | 193 | | |
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| 194 | 194 | | |
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| 195 | 195 | | This bill establishes the "Uniform Real Property Transfer on Death Act" (act). The act was promulgated by the Uniform Law Commission in 2009. |
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| 196 | 196 | | |
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| 197 | 197 | | 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. |
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| 198 | 198 | | |
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| 199 | 199 | | 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. |
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| 200 | 200 | | |
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| 201 | 201 | | The following rules apply to the property that is subject of a TOD deed and owned by the transferor at death: |
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| 202 | 202 | | |
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| 203 | 203 | | (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. |
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| 204 | 204 | | |
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| 205 | 205 | | (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. |
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| 206 | 206 | | |
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| 207 | 207 | | 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. |
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| 208 | 208 | | |
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| 209 | 209 | | 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. |
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| 210 | 210 | | |
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| 211 | 211 | | 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. |
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| 212 | 212 | | |
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| 213 | 213 | | 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. |
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