05/04/2023 01:30 PM House FINANCE

HOUSE BILL NO. 81                                                                                                             
                                                                                                                                
     "An Act relating to the transfer of a title on the                                                                         
     death of the owner; and providing for an effective                                                                         
     date."                                                                                                                     
3:21:10 PM                                                                                                                    
                                                                                                                                
RYAN MCKEE, STAFF, REPRESENTATIVE GEORGE RAUSCHER, read the                                                                     
sponsor statement:                                                                                                              
                                                                                                                                
     The process of probate in  the state of Alaska can take                                                                    
     anywhere  from six  months to  several  years, and  can                                                                    
     cost  family   members  and   beneficiaries  thousands,                                                                    
     potentially tens  of thousands of dollars  in legal and                                                                    
     filing fees.  While the  State Legislature  has already                                                                    
     taken  great strides  to reduce  the costs  of probate,                                                                    
     there is still much room for improvement.                                                                                  
                                                                                                                                
     House  Bill 81  continues  in spirit  with the  Uniform                                                                    
     Real  Property Transfer  on Death  Act (URPTDA),  which                                                                    
     unanimously passed  both the House and  Senate in 2014.                                                                    
     URPTDA created the Transfer on  Death (TOD) deed, which                                                                    
     allows for non-probate transfers  of real property. TOD                                                                    
     deeds allow  Alaskans to select a  beneficiary who will                                                                    
     receive the property at their  passing and removes that                                                                    
     property from the process of probate.                                                                                      
                                                                                                                                
     In 2016,  legislation similar to  HB 81  was introduced                                                                    
     but the  legislation failed to pass  that session. HB81                                                                    
     is nearly  identical, although  it expands  the concept                                                                    
     to apply  both to  vehicles and  boats that  are issued                                                                    
     titles through the state.                                                                                                  
                                                                                                                                
     HB81 continues  the ongoing effort to  reduce the costs                                                                    
     of  probate  for  Alaskans and  creates  a  streamlined                                                                    
     service  through   the  DMV  through  which   they  can                                                                    
     designate  beneficiaries   for  both  cars   and  boats                                                                    
     through  a   simple  form.  The  TOD   titles  will  be                                                                    
     available for all boats and  vehicles for which the DMV                                                                    
     provides  titles,  which   also  includes  some  mobile                                                                    
     manufactured homes under  AS 45.29.102(66). The program                                                                    
     will be self-sustaining through fees.                                                                                      
                                                                                                                                
     At no  cost to  the state, HB  81 will  allow countless                                                                    
     Alaskans  to  pass  down   boats,  vehicles,  and  some                                                                    
     manufactured  homes to  beneficiaries  with more  ease,                                                                    
     and will  help simplify and streamline  the potentially                                                                    
     complicated,  costly, and  painful  process of  probate                                                                    
     following the death of a loved one.                                                                                        
                                                                                                                                
3:24:11 PM                                                                                                                    
                                                                                                                                
Representative  Josephson thought  that  a surviving  spouse                                                                    
was  defined as  a  husband  and a  wife.  He  asked if  the                                                                    
language was amended  to be consistent with  current law and                                                                    
whether the  change would be  objectionable to  the sponsor.                                                                    
Mr.  McKee  offered  to  respond after  he  spoke  with  the                                                                    
sponsor.                                                                                                                        
                                                                                                                                
3:24:56 PM                                                                                                                    
                                                                                                                                
Representative Galvin determined that  the state already had                                                                    
the provisions  for real estate,  but it was not  in statute                                                                    
for vehicles and  boats. She asked whether  she was correct.                                                                    
Mr. McKee replied in the affirmative.                                                                                           
                                                                                                                                
3:25:26 PM                                                                                                                    
                                                                                                                                
Representative Josephson  deduced that  in relation  to real                                                                    
estate the  law referred  to tenancy in  common, but  if the                                                                    
title was  just in  the name  of one  spouse or  another, he                                                                    
wondered   whether  the   transfer  process   would  proceed                                                                    
quickly.                                                                                                                        
                                                                                                                                
3:26:16 PM                                                                                                                    
                                                                                                                                
LINDA HULBERT, SELF,  FAIRBANKS (via teleconference), shared                                                                    
that she was  not an attorney, but was employed  by New York                                                                    
Life for 33  years and worked with people in  the estate and                                                                    
probate process.  She was deeply involved  in supporting the                                                                    
legislation but stressed that she was not an attorney.                                                                          
                                                                                                                                
Representative   Josephson   repeated   his   question.   He                                                                    
explained that  when a home  was owned jointly by  a married                                                                    
couple  it  was  called   tenancy in  common.   However,  in                                                                    
instances  where only  one  spouse held  the  title and  the                                                                    
marriage  ended, the  titled spouse  was not  considered the                                                                    
sole owner  of the property.  He was curious about  the ease                                                                    
of which  a house was  transferred to the other  spouse upon                                                                    
the death of one spouse.                                                                                                        
                                                                                                                                
3:28:21 PM                                                                                                                    
                                                                                                                                
HB  81  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Foster reviewed the agenda  for the morning portion                                                                    
of  the  meeting.  He  noted that  the  committee  would  be                                                                    
recessed until the following morning.