Transfer-on-Death Deed

TRANSFER ON DEATH DEED -- NEW JERSEY

STATUS: NOT AUTHORIZED FOR REAL PROPERTY

IMPORTANT NOTICE

New Jersey does NOT currently permit Transfer-on-Death (TOD) Deeds for real estate. As of April 2026, there is no enacted statute in New Jersey authorizing the transfer of real property interests via a TOD deed. Legislation modeled on the Uniform Real Property Transfer on Death Act has been introduced in multiple legislative sessions but has not been enacted into law.

TABLE OF CONTENTS

1. Current Legal Status
2. Pending Legislation
3. What New Jersey Does Allow
4. Alternatives for Real Property Transfer
5. Comparison of Alternatives
6. Practitioner Checklist

SECTION 1 -- CURRENT LEGAL STATUS

New Jersey law permits Transfer-on-Death (TOD) designations for securities only under N.J. Stat. 3B:30-1 et seq. (Uniform Transfer on Death Security Registration Act). This includes stocks, bonds, and brokerage accounts.

However, New Jersey does not permit:

• Transfer-on-Death deeds for real property
• Beneficiary deeds for real property
• Any nontestamentary deed instrument that transfers real property upon death

Real property in New Jersey must pass through one of the recognized methods described below to avoid or go through probate.

SECTION 2 -- PENDING LEGISLATION

The following bills to enact the Uniform Real Property Transfer on Death Act have been introduced in New Jersey but have not been enacted:

SECTION 3 -- WHAT NEW JERSEY DOES ALLOW

3.1 -- TOD for Securities

Under N.J. Stat. 3B:30-1 et seq., securities may be registered in beneficiary form using "transfer on death" (TOD) or "pay on death" (POD) designations. Upon the owner's death, securities pass directly to the named beneficiary without probate.

3.2 -- POD for Bank Accounts

New Jersey permits payable-on-death (POD) designations on bank accounts, allowing funds to pass directly to a named beneficiary upon death.

3.3 -- TOD for Motor Vehicles

New Jersey does not currently permit TOD designations on motor vehicle titles.

SECTION 4 -- ALTERNATIVES FOR REAL PROPERTY TRANSFER

Since TOD deeds are not available in New Jersey, property owners seeking to avoid probate for real estate should consider the following alternatives:

Alternative 1: Revocable Living Trust

Description: The property owner transfers the real property into a revocable living trust during their lifetime. Upon death, the trustee distributes the property to the designated beneficiaries without probate.

Advantages:
☐ Avoids probate entirely
☐ Provides privacy (trust documents are not public record)
☐ Allows for complex distribution plans
☐ Can include incapacity planning provisions

Disadvantages:
☐ Higher upfront cost to establish
☐ Requires retitling property into the trust
☐ Ongoing trust administration during lifetime

Alternative 2: Joint Tenancy with Right of Survivorship

Description: The property owner adds the intended beneficiary as a joint tenant with right of survivorship. Upon the owner's death, the property automatically passes to the surviving joint tenant.

Statutory Authority: N.J. Stat. 46:3-17.1 (joint tenancies)

Advantages:
☐ Simple and inexpensive to establish
☐ Automatic transfer at death without probate

Disadvantages:
☐ Immediate transfer of present ownership interest
☐ Exposes property to the joint tenant's creditors
☐ May trigger gift tax consequences
☐ Loss of full control over the property
☐ Cannot be revoked unilaterally

Alternative 3: Tenancy by the Entirety (Married Couples)

Description: Married couples in New Jersey may hold property as tenants by the entirety, which provides automatic survivorship rights.

Statutory Authority: N.J. Stat. 46:3-17.2

Advantages:
☐ Automatic transfer to surviving spouse
☐ Creditor protection from individual debts of one spouse

Disadvantages:
☐ Available only to married couples
☐ Does not address transfer after both spouses die

Alternative 4: Last Will and Testament

Description: The property owner designates the intended beneficiary in a will. The property passes through probate.

Advantages:
☐ Simple and inexpensive to create
☐ Owner retains full control during lifetime

Disadvantages:
☐ Requires probate administration
☐ Public record
☐ May involve delays and costs

SECTION 5 -- COMPARISON OF ALTERNATIVES

SECTION 6 -- PRACTITIONER CHECKLIST

☐ Confirm TOD deed legislation has not been enacted (check current session bills)
☐ Assess client's estate planning goals and property holdings
☐ Evaluate alternatives based on client's marital status, family dynamics, and tax situation
☐ If revocable trust selected, prepare trust agreement and deed transferring property to trust
☐ If joint tenancy selected, prepare and record new deed with survivorship language
☐ Advise client on New Jersey inheritance tax implications (N.J. Stat. 54:34-1 et seq.)
☐ Advise client on New Jersey estate tax implications (N.J. Stat. 54:38A-1 et seq. -- repealed for deaths after January 1, 2018)
☐ Document client's informed decision regarding chosen alternative
☐ Review and update plan periodically

SOURCES AND REFERENCES

• N.J. Stat. 3B:30-1 et seq. -- Uniform Transfer on Death Security Registration Act (securities only)
• N.J. Stat. 46:3-17.1 -- Joint Tenancies
• N.J. Stat. 46:3-17.2 -- Tenancy by the Entirety
• Senate Bill S3376 (2024-2025 Session) -- Proposed Uniform Real Property Transfer on Death Act
• Assembly Bill A4539 (2024-2025 Session) -- Proposed URPTODA
• Senate Bill S3679 (2026 Session) -- Proposed URPTODA
• Uniform Real Property Transfer on Death Act (2009), Uniform Law Commission
• Nolo, "Avoiding Probate in New Jersey" (2024)