txt

CSHB 273(STA): "An Act relating to the transfer of the title to a vehicle, including certain manufactured homes and trailers, on the death of the owner; allowing a person to act for the surviving spouse of a decedent to make a demand of the personal representative of the decedent's estate related to enforcing a liability against real property or an interest in real property transferred at death by a transfer on death deed; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 273(STA) 01 "An Act relating to the transfer of the title to a vehicle, including certain manufactured 02 homes and trailers, on the death of the owner; allowing a person to act for the surviving 03 spouse of a decedent to make a demand of the personal representative of the decedent's 04 estate related to enforcing a liability against real property or an interest in real property 05 transferred at death by a transfer on death deed; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 13.33.101(a) is amended to read: 08 (a) A provision for a nonprobate transfer on death in an insurance policy, 09 contract of employment, bond, mortgage, promissory note, certificated or 10 uncertificated security, account agreement, custodial agreement, deposit agreement, 11 compensation plan, pension plan, individual retirement plan, employee benefit plan, 12 trust, conveyance, deed of gift, marital property agreement, or other written instrument 13 of a similar nature is nontestamentary. This subsection includes [A WRITTEN

01 PROVISION THAT] 02 (1) a written provision that 03 (A) money or other benefits due to, controlled by, or owned by 04 a decedent before death must be paid after the decedent's death to a person 05 whom the decedent designates either in the instrument or in a separate writing, 06 including a will, executed either before or at the same time as the instrument, 07 or later; 08 (B) [(2)] money due or to become due under the instrument 09 ceases to be payable in the event of death of the promisee or the promisor 10 before payment or demand; or 11 (C) [(3)] property controlled by or owned by the decedent 12 before death that is the subject of the instrument passes to a person the 13 decedent designates either in the instrument or in a separate writing, including 14 a will, executed either before or at the same time as the instrument, or later; 15 and 16 (2) a transfer of a vehicle by a transfer on death title under 17 AS 28.10.275. 18 * Sec. 2. AS 13.48.110(c) is amended to read: 19 (c) A proceeding to enforce the liability under this section must be 20 commenced not later than 12 months after the transferor's death. A proceeding to 21 enforce the liability under (a) of this section may not be commenced unless the 22 personal representative of the transferor's estate has received a written demand by the 23 surviving spouse, a creditor, a child, or a person acting for a child or the surviving 24 spouse of the decedent. 25 * Sec. 3. AS 28.10 is amended by adding a new section to read: 26 Sec. 28.10.275. Transfer of certificate of title on death. (a) In addition to the 27 transfer of a vehicle provided by AS 28.10.211, 28.10.271, or another statute, the 28 owner of a vehicle for which the department is required or allowed under 29 AS 28.10.201 to issue a certificate of title may obtain a transfer on death title for the 30 vehicle. A transfer on death title transfers the title to a designated beneficiary when the 31 sole owner or the last surviving joint owner dies.

01 (b) To obtain a transfer on death title for a vehicle, the owner of the vehicle 02 shall submit to the department an application on a form established by the department 03 and a fee for the transfer on death title. Each joint owner shall sign the application to 04 obtain, revoke, or change a transfer on death title. 05 (c) In addition to the requirements of AS 28.10.231 for the contents of a 06 certificate of title, a transfer on death title must contain the words "transfer on death 07 to" or the abbreviation "TOD," followed by the names of not more than two 08 designated beneficiaries. 09 (d) A transfer on death title obtained under this section is effective without 10 (1) notice to, delivery to, or acceptance by the designated beneficiary; 11 or 12 (2) consideration. 13 (e) A transfer on death title is a nontestamentary transfer on death. 14 (f) The owner may revoke a transfer on death title or change the designated 15 beneficiary on a transfer on death title at any time during the owner's life without the 16 consent of or notice to the designated beneficiary. 17 (g) To revoke or change a transfer on death title, the owner shall 18 (1) transfer the vehicle to another person and assign and deliver the 19 certificate of title for the vehicle to the other person; or 20 (2) file with the department an application on a form established by the 21 department and pay a fee to the department to reissue the certificate of title for the 22 vehicle without a designated beneficiary or with a different designated beneficiary. 23 (h) A designated beneficiary may disclaim the designated beneficiary's interest 24 in the vehicle under AS 13.70 (Uniform Disclaimer of Property Interests Act). 25 (i) Except as limited under (j) - (l) of this section, a designated beneficiary 26 takes the transfer on death title subject to the 27 (1) conveyances, encumbrances, assignments, contracts, liens, and 28 other interests to which the vehicle is subject at the owner's death; and 29 (2) claims of creditors against the owner or the owner's estate. 30 (j) To the extent the owner's probate estate is insufficient to satisfy an allowed 31 claim against the estate, the costs of administration of the estate, or a statutory

01 allowance to a surviving spouse or child, the estate may enforce the liability against a 02 vehicle transferred at the owner's death by a transfer on death title. 03 (k) If more than one vehicle is transferred by one or more transfer on death 04 titles, the liability under (j) of this section is apportioned among the vehicles in 05 proportion to the net values of the vehicles at the owner's death. 06 (l) A proceeding to enforce a liability under (j) of this section shall begin not 07 later than 12 months after the owner's death. A proceeding to enforce a liability under 08 (j) of this section may not begin unless the personal representative of the owner's 09 estate has received a written demand by the surviving spouse, a creditor, a child of the 10 decedent, or a person acting for a child or the surviving spouse of the decedent. 11 (m) During the life of the owner, a transfer on death title does not 12 (1) affect an interest or right of the sole owner or a joint owner of the 13 vehicle, including the right to transfer or encumber the vehicle; 14 (2) affect an interest or right of the designated beneficiary, even if the 15 designated beneficiary has actual or constructive notice of the transfer on death title; 16 (3) affect an interest or right of a secured or unsecured creditor or 17 future creditor of the sole owner or a joint owner, even if the creditor has actual or 18 constructive notice of the transfer on death title; 19 (4) affect the eligibility of the sole owner, a joint owner, or a 20 designated beneficiary for any form of public assistance; 21 (5) create a legal or equitable interest in favor of the designated 22 beneficiary; or 23 (6) subject the vehicle to the claims or service of process of a creditor 24 of the designated beneficiary. 25 (n) Except as otherwise provided in this section or in AS 13.12.203, 26 13.12.803, or 13.12.804, on the death of the owner, the title to the vehicle is 27 transferred to the designated beneficiary, if the designated beneficiary survives the 28 owner by 120 hours. 29 (o) The department shall issue a new certificate of title for a vehicle to the 30 designated beneficiary after the death of the owner if the designated beneficiary 31 otherwise satisfies this section and submits

01 (1) proof of the death of the owner by providing a death certificate, 02 another official record of the death, or other evidence of the death that is satisfactory 03 to the department; and 04 (2) an application on a form established by the department and pays a 05 fee to the department for the certificate of title. 06 (p) If a designated beneficiary obtains the title to a vehicle under (o) of this 07 section and if the designated beneficiary consists of more than one person, the persons 08 hold the title as joint tenants with the right of survivorship. Notwithstanding 09 AS 28.10.201(c), the department shall issue the new title in the conjunctive. 10 (q) Except as provided in this section, a transfer on death title may not be 11 changed or revoked by will or another instrument, by a change in circumstances, or in 12 any other manner. 13 (r) The department may adopt regulations under AS 44.62 (Administrative 14 Procedure Act) to implement this section, including regulations establishing the forms 15 to be used under this section and the fees to be paid. 16 (s) In this section, 17 (1) "designated beneficiary" means a person to whom a vehicle title is 18 transferred by a transfer on death title; 19 (2) "joint owner" means an individual who owns a vehicle with one or 20 more other individuals as joint tenants with a right of survivorship or as tenants by the 21 entirety; 22 (3) "owner" means 23 (A) the sole owner; or 24 (B) all joint owners; 25 (4) "person" includes a corporation, company, partnership, firm, 26 association, organization, trust, business trust, or society, as well as a natural person; 27 (5) "sole owner" means an individual who is the only person who owns 28 the vehicle; 29 (6) "transfer on death title" means a certificate of title obtained under 30 (a) of this section that transfers the title of a vehicle to a designated beneficiary when 31 the owner dies;

01 (7) "vehicle" means a vehicle for which the department is required or 02 allowed to issue a certificate of title under AS 28.10.201. 03 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 TRANSITION: REGULATIONS. The Department of Administration may adopt 06 regulations necessary to implement AS 28.10.275, enacted by sec. 3 of this Act. The 07 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 08 effective date of sec. 3 of this Act. 09 * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c). 10 * Sec. 6. Sections 1 - 3 of this Act take effect July 1, 2017.