HB 1793

This bill authorizes the transfer of property to one or more beneficiaries effective upon the transferor's death by a transfer on death deed. This bill clarifies that on death deeds are nontestamentary. The capacity required to make or revoke a transfer on death deed is the same as the capacity required to make a will. However, a transfer on death deed is effective without notice to the designated beneficiary during the transferor's life and without consideration. This bill requires a transfer on death deed to (i) contain the essential elements and formalities of a properly recordable inter vivos deed, (ii) state that the transfer to the designated beneficiary is to occur upon the transferor's death, and (iii) be recorded before the transferor's death in the public records in the office of the register of deeds where the property is located. REVOCABILITY This bill clarifies that transfer on death deeds are revocable even if the deed or another instrument contains a contrary provision. An instrument is effective to revoke a recorded transfer on death deed if it is (i) a transfer on death deed that expres sly revokes the recorded transfer on death deed or part of it; (ii) a transfer on death deed that names a designated beneficiary that is inconsistent with the designated beneficiary in a recorded transfer on death deed; (iii) an instrument of revocation t ha t expressly revokes the recorded transfer on death deed or part of it; or (iv) an inter vivos deed that expressly revokes the recorded transfer on death deed or part of it. The instrument must also be acknowledged by the transferor after the acknowledgme nt of the deed being revoked and recorded before the transferor's death in the public records in the county where the deed is recorded. However, a recorded transfer on death deed cannot be revoked by an act taken against or on the original or a copy of t he recorded transfer on death deed. If a transfer on death deed is made by more than one transferor, then this bill provides that revocation by one does not affect the transfer on death deed as to the interest of the other. A transfer on death deed of joint owners may be revoked only if i t is revoked by all living joint owners. This bill clarifies that its provisions regarding the revocable instrument requirements for transfer on death deeds do not limit the effect of an inter vivos transfer of any property associated with such a deed. EFFECT OF A TRANSFER ON DEATH DEED DURING TRANSFEROR'S LIFE During a transferor's life, this bill clarifies that a transfer on death deed does not do any of the following:  Affect an interest or right of the transferor or any other owner, including the right to transfer or encumber the property.  Affect an interest or right of a transferee, even if the transferee has actual or constructive notice of the deed.  Affect an interest or right of a secured or unsecured creditor or future creditor of the transferor, even if the creditor has actual or constructive notice of the deed.  Affect the transferor's or designated beneficiary's eligibility for any form of public assistance unless required by federal law.  Create a legal or equitable interest in favor of the designated beneficiary.  Subject the property to claims or process of a creditor of the designated beneficiary. RULES FOR TRANSFER ON DEATH DEED Upon the death of a transferor, this bill provides that the interest in the property in a transfer on death deed is generally transferred to and vests in the designated beneficiary in accordance with the deed. However, if the designated beneficiary does not survive the transferor, the designated beneficiary's interest lapses. Concurrent interest are transferred to the beneficiaries in equal and undivided shares with no right of survivorship. If the transferor has identified two or more designated bene fi ciaries, then the share of one that lapses is transferred to the other or others. If the transferor is a joint owner that is survived by other joint owners, then the property that is subject to the transfer on death deed belongs to the surviving joint ow ner or owners with right of survivorship but remains subject to the naming of the designated beneficiary in the transfer on death deed. If the transferor is the last surviving joint owner, then the transfer on death deed is effective. This bill generally requires a beneficiary to take the property subject to all interests to which the property is subject at the transferor's death. The transfer and conveyance of the property subject to the transfer on death deed is deemed effective up on the transferor's death. However, a beneficiary may disclaim all or part of the beneficiary's interest in transfer on death deed property. CLAIMS AGAINST THE TRANSFEROR'S ESTATE This bill allows a creditor to enforce liability for allowable claims against the estate against property transferred by a transfer on death deed if the transferor's probate estate is insufficient to satisfy the claim. If a beneficiary conveys the prope rty before the initiation of an action to enforce such liability, then the estate or any creditor may enforce the liability against the beneficiary up to the value of the property conveyed. However, a proceeding to enforce this liability must begin withi n 12 months of the transferor's death. FORMS This bill provides a form that may be used to create a transfer on death deed. It also provides a form that may be used to create an instrument of revocation for a transfer on death deed. TRANSFER OF TITLE FOR MOTOR VEHICLES This bill authorizes the owner of a motor vehicle to provide for the transfer of title upon the owner's death by including in the certificate of title a designation of a beneficiary. If the motor vehicle is owned by two or more persons, then ownership o f the motor vehicle does not vest in the designated beneficiary until the death of the last owner. The beneficiary's interest in the motor vehicle is subject to the rights of all lienholders. A transfer on death certificate of title must include the wor ds "transfer on death to"" or ""TOD"" followed by the name of the beneficiary. The beneficiary may be changed at any time with the filing of an application for subsequent transfer on death certificate of title. APPLICABILITY This bill applies to transfer on death deeds or certificates of title with a designated beneficiary made before, on, or after July 1, 2026, by a transferor or motor vehicle owner dying on or after July 1, 2026."