Transfer on Death Deeds: What Homeowners Must Know

How to ensure your assets are distributed according to your wishes.

While none of us want to imagine—much less plan—the legalities of our estate after death, being unprepared for what happens to your assets after you pass leads to costly and long-term conflict among family members and potential beneficiaries. That’s why today, we will talk about a new House Bill that, starting July 1, introduces significant changes in the way real property is transferred upon death: the Transfer on Death deeds. Simply put, the TOD aims to simplify the transfer process to beneficiaries. Here’s what you need to know: 

• What is a Transfer on Death deed? A Transfer on Death deed functions similarly to a beneficiary designation for bank accounts or retirement funds. Homeowners can name one or more individuals to inherit their property upon the owner's death. The deed itself becomes effective only at the owner's death and can be changed or revoked at any time.

"The Transfer on Death deeds makes it easier for property owners to ensure their assets are distributed according to their wishes."

• Why consider a Transfer on Death deed? The primary advantage of a TOD deed is the avoidance of probate, a process traditionally used to settle estates and distribute assets. Probate can be lengthy, lasting from six months to over a year, and is often expensive and complex. Before this legislation, the alternatives to avoid probate included adding a co-owner, which carries risks; or setting up a revocable trust which can be complicated and costly. The new TOD deed offers a simpler and more accessible solution for property owners in New Hampshire.
• Requirements for creating a Transfer on Death deed. Creating a TOD deed involves meeting specific content, execution, and recording requirements. For example, the deed must name one or more beneficiaries and include a legal description of the property. The deed must also be signed, notarized, and recorded with the county registry prior to the owner's death and within 60 days of signing.

Planning ahead may be hard, but not having a plan will make it harder on your loved ones. For more information, call us at 603-557-6661 so we can connect you with reliable and experienced legal professionals. We are here to help.