CSSB 104(FIN): "An Act relating to the transfer of a title on the death of the owner; relating to the transferability of common interest community ownership interests; and providing for an effective date."
00 CS FOR SENATE BILL NO. 104(FIN) 01 "An Act relating to the transfer of a title on the death of the owner; relating to the 02 transferability of common interest community ownership interests; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 05.25 is amended by adding a new section to read: 06 Sec. 05.25.058. Transfer of certificate of title on death. The owner of a boat 07 for which the Department of Administration is required or allowed to issue a 08 certificate of title under this chapter may obtain a transfer on death title for the boat 09 under AS 13.33.401. 10 * Sec. 2. AS 13.33.101(a) is amended to read: 11 (a) A provision for a nonprobate transfer on death in an insurance policy, 12 contract of employment, bond, mortgage, promissory note, certificated or 13 uncertificated security, account agreement, custodial agreement, deposit agreement, 14 compensation plan, pension plan, individual retirement plan, employee benefit plan,
01 trust, conveyance, deed of gift, marital property agreement, or other written instrument 02 of a similar nature is nontestamentary. This subsection includes 03 (1) a written provision that 04 (A) [(1)] money or other benefits due to, controlled by, or 05 owned by a decedent before death must be paid after the decedent's death to a 06 person whom the decedent designates either in the instrument or in a separate 07 writing, including a will, executed either before or at the same time as the 08 instrument, or later; 09 (B) [(2)] money due or to become due under the instrument 10 ceases to be payable in the event of death of the promisee or the promisor 11 before payment or demand; or 12 (C) [(3)] property controlled by or owned by the decedent 13 before death that is the subject of the instrument passes to a person the 14 decedent designates either in the instrument or in a separate writing, including 15 a will, executed either before or at the same time as the instrument, or later; 16 and 17 (2) a transfer of a boat or vehicle by a transfer on death title under 18 AS 13.33.401. 19 * Sec. 3. AS 13.33 is amended by adding a new section to read: 20 Article 4. Transfer of Boat and Vehicle Title on Death. 21 Sec. 13.33.401. Transfer of certificate of title on death. (a) The owner of a 22 boat or vehicle for which the department is required or allowed to issue a certificate of 23 title may obtain a transfer on death title for the boat or vehicle. A transfer on death 24 title transfers the title to a designated beneficiary when the sole owner or the last 25 surviving joint owner dies. 26 (b) To obtain a transfer on death title for a boat or vehicle, the owner of the 27 boat or vehicle shall submit to the department an application on a form established by 28 the department, with the names of at least one and not more than two designated 29 beneficiaries, and a fee for the transfer on death title. Each joint owner shall sign the 30 application to obtain, revoke, or change a transfer on death title. 31 (c) A transfer on death title must contain the words "transfer on death to" or
01 the abbreviation "TOD," followed by the names of not more than two designated 02 beneficiaries. 03 (d) A transfer on death title obtained under this section is effective without 04 (1) notice to, delivery to, or acceptance by the designated beneficiary; 05 or 06 (2) consideration. 07 (e) A transfer on death title is a nontestamentary transfer on death. 08 (f) The owner may revoke a transfer on death title or change the designated 09 beneficiary on a transfer on death title at any time during the owner's life without the 10 consent of or notice to the designated beneficiary. 11 (g) To revoke or change a transfer on death title, the owner shall 12 (1) transfer the boat or vehicle to another person and assign and deliver 13 the certificate of title for the boat or vehicle to the other person; or 14 (2) file with the department an application on a form established by the 15 department and pay a fee to the department to reissue the certificate of title for the 16 boat or vehicle without a designated beneficiary or with a different designated 17 beneficiary. 18 (h) A designated beneficiary may disclaim the designated beneficiary's interest 19 in the boat or vehicle under AS 13.70 (Uniform Disclaimer of Property Interests Act). 20 (i) Except as limited under (j) - (l) of this section, a designated beneficiary 21 takes the transfer on death title subject to the 22 (1) conveyances, encumbrances, assignments, contracts, liens, and 23 other interests to which the boat or vehicle is subject at the owner's death; and 24 (2) claims of creditors against the owner or the owner's estate. 25 (j) To the extent the owner's probate estate is insufficient to satisfy an allowed 26 claim against the estate, the costs of administration of the estate, or a statutory 27 allowance to a surviving spouse or child, the estate may enforce the liability against a 28 boat or vehicle transferred at the owner's death by a transfer on death title. 29 (k) If more than one boat or vehicle is transferred by one or more transfer on 30 death titles, the liability under (j) of this section is apportioned among the boats or 31 vehicles in proportion to the net values of the boats or vehicles at the owner's death.
01 (l) A proceeding to enforce a liability under (j) of this section shall begin not 02 later than 12 months after the owner's death. A proceeding to enforce a liability under 03 (j) of this section may not begin unless the personal representative of the owner's 04 estate has received a written demand by the surviving spouse, a creditor, a child of the 05 decedent, or a person acting for a child or the surviving spouse of the decedent. 06 (m) During the life of the owner, a transfer on death title does not 07 (1) affect an interest or right of the sole owner or a joint owner of the 08 boat or vehicle, including the right to transfer or encumber the boat or vehicle; 09 (2) affect an interest or right of the designated beneficiary, even if the 10 designated beneficiary has actual or constructive notice of the transfer on death title; 11 (3) affect an interest or right of a secured or unsecured creditor or 12 future creditor of the sole owner or a joint owner, even if the creditor has actual or 13 constructive notice of the transfer on death title; 14 (4) affect the eligibility of the sole owner, a joint owner, or a 15 designated beneficiary for any form of public assistance; 16 (5) create a legal or equitable interest in favor of the designated 17 beneficiary; or 18 (6) subject the boat or vehicle to the claims or service of process of a 19 creditor of the designated beneficiary. 20 (n) Except as otherwise provided in this section or in AS 13.12.203, 21 13.12.803, or 13.12.804, on the death of the owner, the title to the boat or vehicle is 22 transferred to the designated beneficiary, if the designated beneficiary survives the 23 owner by 120 hours. 24 (o) The department shall issue a new certificate of title for a boat or vehicle to 25 the designated beneficiary after the death of the owner if the designated beneficiary 26 otherwise satisfies this section and submits 27 (1) proof of the death of the owner by providing a death certificate, 28 another official record of the death, or other evidence of the death that is satisfactory 29 to the department; and 30 (2) an application on a form established by the department and pays a 31 fee to the department for the certificate of title.
01 (p) If a designated beneficiary obtains the title to a boat or vehicle under (o) of 02 this section and if the designated beneficiary consists of more than one person, the 03 persons hold the title as joint tenants with the right of survivorship and the department 04 shall issue the new title in the conjunctive. 05 (q) Except as provided in this section, a transfer on death title may not be 06 changed or revoked by will or another instrument, by a change in circumstances, or in 07 any other manner. 08 (r) The department may adopt regulations under AS 44.62 (Administrative 09 Procedure Act) to implement this section, including regulations establishing the forms 10 to be used under this section and the fees to be paid. 11 (s) In this section, 12 (1) "boat" means a boat for which the department is required or 13 allowed to issue a title under AS 05.25.055 or 05.25.056; 14 (2) "department" means Department of Administration; 15 (3) "designated beneficiary" means a person to whom a boat or vehicle 16 title is transferred by a transfer on death title; 17 (4) "joint owner" means an individual who owns a boat or vehicle with 18 one or more other individuals as joint tenants with a right of survivorship or as tenants 19 by the entirety; 20 (5) "owner" means 21 (A) the sole owner; or 22 (B) all joint owners; 23 (6) "person" includes a corporation, company, partnership, firm, 24 association, organization, trust, business trust, or society, as well as a natural person; 25 (7) "sole owner" means an individual who is the only person who owns 26 the boat or vehicle; 27 (8) "transfer on death title" means a certificate of title obtained under 28 (a) of this section that transfers the title of a boat or vehicle to a designated beneficiary 29 when the owner dies; 30 (9) "vehicle" means a vehicle for which the department is required or 31 allowed to issue a certificate of title under AS 28.10.201.
01 * Sec. 4. AS 13.48.110(c) is amended to read: 02 (c) A proceeding to enforce the liability under this section must be 03 commenced not later than 12 months after the transferor's death. A proceeding to 04 enforce the liability under (a) of this section may not be commenced unless the 05 personal representative of the transferor's estate has received a written demand by the 06 surviving spouse, a creditor, a child, or a person acting for a child or the surviving 07 spouse of the decedent. 08 * Sec. 5. AS 13.48.190(5) is amended to read: 09 (5) "property" means 10 (A) an interest in real property located in this state, which is 11 transferable on the death of the owner; or 12 (B) an ownership interest in a unit, and all rights, 13 obligations, and interests appurtenant to the unit, in a common interest 14 community, or a leasehold interest in a leasehold common interest 15 community subject to AS 34.08, which is transferable on the death of the 16 owner; 17 * Sec. 6. AS 28.10 is amended by adding a new section to read: 18 Sec. 28.10.275. Transfer of certificate of title on death. In addition to the 19 transfer of a vehicle provided by AS 28.10.211, 28.10.271, or another statute, the 20 owner of a vehicle for which the department is required or allowed under 21 AS 28.10.201 to issue a certificate of title may obtain a transfer on death title for the 22 vehicle under AS 13.33.401. 23 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITION: REGULATIONS. The Department of Administration may adopt 26 regulations necessary to implement AS 13.33.401, enacted by sec. 3 of this Act. The 27 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 28 effective date of sec. 3 of this Act. 29 * Sec. 8. Section 7 of this Act takes effect immediately under AS 01.10.070(c). 30 * Sec. 9. Except as provided in sec. 8 of this Act, this Act takes effect July 1, 2026.