New Hampshire’s Transfer on Death Deed ("TODD") Law Goes Into Effect

Purpose

RSA 563-D authorizes an owner of real estate to designate a beneficiary to inherit the real estate outside of probate using a Transfer on Death Deed (TODD).  The purpose for the law is to provide a simplified, cost-effective mechanism for passing real estate to heirs without the need for a will or trust.  Testimony indicated twenty-eight states and the District of Columbia already had adopted similar laws.

Some key provisions

Deed formalities.  The deed must meet the statutory requirements for deeds (RSA 477:3), must be titled as a Transfer on Death Deed, and must specify that the transfer occurs upon the death of the transferor.  If an attorney-in-fact wishes to execute a TODD, the power of attorney must explicitly grant the authority to create or revoke a TODD.

Effect at death.  The property is transferred to the designated beneficiary only if the beneficiary survives the transferor, and the property is subject to all conveyances, liens, or encumbrances that existed at the time of death.

Beneficiaries.  If the designated beneficiary dies before the transferor, their interest lapses.  The statute permits the naming of multiple beneficiaries; therefore, if one designated beneficiary dies before the transferor, their share may be distributed to other surviving beneficiaries, per the terms of the TODD.

Effect on transferor’s rights.  A TODD does not affect a transferor's rights during his or her lifetime, allowing the transferor to sell, transfer, or encumber the property without involving the designated beneficiary.

Liability for claims. The property remains liable for the transferor’s debts and statutory allowances, such as a surviving spouse's elective share.

Revocation.  A transferor can revoke a TODD during his or her life by executing and recording a new TODD or a specific revocation instrument (RSA 563-D:11). The revocation must be properly acknowledged and recorded prior to the transferor’s death

Statutory templates.  The law includes optional statutory forms for creating and revoking TODDs.  These forms outline the necessary language and ensure compliance with the statute's requirements.

Effective Date

The law became effective on July 1, 2024.

For assistance with estate planning or real estate matters, please contact our office at (603) 856-8411 or at this link.