New Jersey homeowners considering a transfer on death deed often want to leave a house to family without giving up ownership during their lifetime.
New Jersey does not currently allow transfer-on-death deeds for real estate. Property owners must therefore consider other ways to transfer a home at death.
Three alternatives are joint tenancy with right of survivorship, transferring property through a will, and a deed reserving a life estate. Before selecting a method, consider whether you need control over a future sale or refinance, or primarily want to preserve lifetime use of the home.
Are Transfer on Death Deeds Allowed in New Jersey?
A transfer on death deed, sometimes called a beneficiary deed or TOD deed, names the person who will receive real estate when its owner dies. In states that allow this arrangement, the deed generally lets the property pass outside probate without making the beneficiary a present owner.
The owner can use, sell, or mortgage the property and can revoke the designation under the applicable state’s rules. Recording the deed during life establishes the arrangement; it does not give the beneficiary immediate ownership or possession.
New Jersey has proposed legislation to authorize these deeds. Senate Bill S3679 would establish the Uniform Real Property Transfer on Death Act. As of October 13, 2026, the Legislature’s published record lists the bill at second reading in the Senate, not as enacted law.
New Jersey requires an ordinary deed to take effect as a conveyance during the owner’s lifetime. A deed kept under the owner’s control and intended to operate only at death can fail as an attempted testamentary transfer. That differs from conveying a future interest now while retaining lifetime possession, as a life estate deed does.
An out-of-state transfer on death deed form should therefore not be treated as a valid New Jersey estate-planning shortcut.
What Are the Alternatives to Transfer on Death Deeds in New Jersey?
The following three options address different priorities: shared ownership, retained control, and lifetime possession.
Joint Tenancy With Right of Survivorship
An owner can transfer property from their sole name to themselves and another person as joint tenants with right of survivorship. If the joint tenancy remains intact, the surviving joint tenant takes the deceased owner’s interest without receiving it under a will.
The deed must expressly establish a joint tenancy. N.J.S.A. 46:3-17 requires the intention to create that ownership arrangement to be “expressly outlined in the grant or devise.” Simply adding another name does not necessarily create survivorship rights.
The principal drawback is that the other person becomes an owner immediately. For example, adding an adult child as a joint tenant gives the child a current interest, not merely a future inheritance.
The original owner cannot simply remove the child’s interest later. In Branco v. Rodrigues, 476 N.J. Super. 110 (App. Div. 2023), the court explained that creating the joint tenancy relinquished sole ownership. A joint tenant’s transfer of their own interest can also sever the joint tenancy and end the associated survivorship rights.
Transferring Property Through a Will
A will lets an owner keep the property in their sole name and specify who receives it at death. Naming someone in a will does not make that person a current co-owner, and the owner can change the will while legally competent.
Under N.J.S.A. 3B:1-3, property passes at death to the people designated in the will, subject to creditors’ rights and estate administration. That qualification matters: an inheritance does not eliminate the estate’s obligations.
Unlike a survivorship arrangement, a will does not avoid probate. N.J.S.A. 3B:3-18 requires admitting a will to probate to establish a transfer under it. Ownership passing at death and completing estate administration are separate matters.
This option preserves lifetime ownership without creating the present co-ownership that comes with adding someone to a deed.
Life Estate Deeds
A traditional life estate deed divides ownership into two interests:
- Life estate: The original owner retains possession and use of the property for life.
- Remainder interest: The recipient receives an ownership interest now, with possession postponed until the life estate ends.
For example, a parent can convey the remainder in a home to an adult child while reserving a life estate. The parent continues living there. When the parent dies, the life estate ends and the child’s remainder becomes the right to full possession under the original deed.
The critical distinction is that the child receives the remainder during the parent’s lifetime and not at the parent’s death. With a traditional deed that reserves no power of revocation, the parent cannot simply erase that interest in a later will.
Selling or mortgaging the entire property generally requires both the life tenant and remainder owner to participate. The New Jersey Supreme Court discussed this limitation in Estate of Van Riper v. Director, Division of Taxation, 241 N.J. 115, 129–30 (2020).
A life estate deed can preserve lifetime occupancy, but it reduces flexibility. Before signing, owners should review plans for a future sale or refinancing, the intended recipient’s circumstances, and tax and Medicaid implications. Probate avoidance should not be confused with avoiding inheritance tax or other obligations.
Contact the Law Firm of Earl P. White, PC
Before adding someone to your deed or reserving a life estate, make sure the documents reflect both your present needs and your intended transfer. The Law Firm of Earl P. White, PC reviews existing deeds, prepares new deeds, and structures New Jersey ownership transfers.
Call (201) 627-2457 or use our Contact Us page to discuss your property and proposed transfer.