Understanding New Hampshire's Transfer on Death Deeds (TODD): What You Need to Know

 


Effective July 1, New Hampshire has adopted the Uniform Real Property Transfer on Death Act (RSA 563-D). RSA 563-D authorizes the use of Transfer of Death Deeds (TODD) in New Hampshire, bringing significant changes to property inheritance procedures. Here’s what you need to know about TODDs:

What is a TODD? A Transfer on Death Deed (TODD) is a legal instrument that allows real property to transfer to designated beneficiaries upon the death of the property owner (grantor).

Key Features of TODDs:

  • Non-Testamentary: TODD assets bypass probate proceedings, streamlining the transfer process.
  • Exempt from Transfer Taxes: There are no transfer taxes applied to TODD transfers.

Key Requirements:

  • Recording: The TODD must be recorded with the county registry of deeds before the grantor’s death.
  • Timing: It must be recorded at least 60 days after signing to ensure validity.
  • Property Description: A complete and accurate property description is required.
  • No Notice Required: Unlike other transfers, no notification or acceptance from beneficiaries is needed during the grantor's lifetime.

Rights of Beneficiaries:

  • Inheritance: Upon the grantor's death, beneficiaries inherit the property directly.
  • Subject to Encumbrances: The property remains subject to pre-existing conveyances, encumbrances, mortgages, or liens.
  • Estate Claims: If the grantor’s estate cannot satisfy debts or claims, creditors can enforce liabilities against the TODD property.

Considerations:

  • Estate Planning Tool: TODDs offer a strategic option for property transfer but require careful consideration.
  • Legal Counsel Advised: Due to their complexity, consulting with an Estate Attorney is essential to ensure TODDs align with your estate planning goals.

Please note, while Broker’s Title does not prepare Transfer on Death Deeds, we recognize their importance in estate planning. For expert guidance on TODDs and other estate matters, we recommend seeking advice from a qualified Estate Attorney.

Stay informed and plan ahead with confidence in navigating New Hampshire’s evolving real estate landscape. For more insights and assistance with your title and closing needs, contact Broker’s Title today.


   (603)434-1414  www.brokerstitlenh.com |info@brokerstitlenh.com

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