Legislature(2025 - 2026)BELTZ 105 (TSBldg)
05/01/2025 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB167 | |
| SB104 | |
| SB160 | |
| SB107 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 104 | TELECONFERENCED | |
| *+ | SB 160 | TELECONFERENCED | |
| += | SB 107 | TELECONFERENCED | |
| += | SB 167 | TELECONFERENCED | |
SB 104-VEHICLES/BOATS: TRANSFER ON DEATH TITLE
3:38:57 PM
CHAIR KAWASAKI reconvened the meeting and announced the
consideration of SENATE BILL NO. 104 "An Act relating to the
transfer of a title on the death of the owner; and providing for
an effective date."
3:39:28 PM
JENNA COLQUHOUN, Staff, Senator Scott Kawasaki, Alaska State
Legislature, Juneau, Alaska, introduced SB 104 on behalf of the
sponsor and read the following quote from slide 1:
[Original punctuation provided.]
"An Act relating to the transfer of a title on the
death of the owner; and providing for an effective
date."
3:39:53 PM
MS. COLQUHOUN moved to slide 2 and discussed the following:
[Original punctuation provided.]
Transfer on Death Deeds
• Was created in Alaskan Statute when the "Uniform
Real Property Transfer on Death Act" was passed
in 2014 by the 28th Legislature
-AS 13.48.010 "An individual may transfer
property to one or more beneficiaries effective
at the transferor's death by a transfer on death
deed."
• AS 13.48.020 "A transfer on death deed is no
testamentary
-Not involving or creating a will
-Assets subject to a Transfer on Death (TOD) deed
skip the probate process
• TOD deeds currently can only be used for Real
Property
-Land and anything permanently attached to it
3:41:14 PM
MS. COLQUHOUN moved to slide 3 and discussed the following:
[Original punctuation provided.]
What SB 104 Does
• Extends Transfer on Death (TOD) deed to boats,
vehicles, and certain manufactured homes titled
through the DMV
-No more than two beneficiaries
-Owner can revoke TOD deed or change the
beneficiary at anytime without notice to the
beneficiary
-Designated beneficiary can disclaim their
interest
• Beneficiary of a TOD deed would be subject to
conveyances, encumbrances, assignments,
contracts, liens, and other interests to which
the boat or vehicle
• Establishes the procedure to obtain a TOD deed
-Owner will fill out an application and submit a
fee to the Department of Administration
-These fees will serve to fund the program
3:43:15 PM
MS. COLQUHOUN moved to slide 4 and discussed the following:
[Original punctuation provided.]
Benefits of SB 104
• Lowers the cost of probate for Alaskans
-On average, it costs $14,225 to settle an
estate*
• Allows Alaskans without ready access to law
services estate planning tools
-Rural Alaska
• Expedites beneficiary access to boats and
vehicles
-Enabling timely maintenance and preservation of
boats and vehicles
-In the instance of a family fishing business,
allows the business to continue uninterrupted
• Reduces probate case load
3:45:55 PM
CHAIR KAWASAKI announced invited testimony on SB 104.
3:47:25 PM
CHELSEA RIEKKOLA, Attorney, Foley and Pearson, Anchorage,
Alaska, testified by invitation on SB 104 and emphasized that
the bill improves access to justice. She noted that probate for
smaller assetslike vehicles and boatsoften doesn't justify
using public or court resources, and SB 104 would address the
issue.
3:49:07 PM
CHRISTOPHER WALKER, representing self, Faulkner Banfield,
Juneau, Alaska, testified by invitation on SB 104 and said this
is a common-sense measure that fills a gap in current law. He
explained that Alaska lacks effective mechanisms to transfer
certain assets, especially boats and vehicleswithout probate.
He said existing tools like TOD deeds are limited because they
don't fully avoid probate for these items.
3:51:29 PM
ABIGAIL O'CONNOR, Chief Fiduciary Officer, Peak Trust Company,
Anchorage, Alaska, testified by invitation on SB 104 and stated
this is a practical solution for families when someone dies on a
boat in Alaska. SB 104 addresses timing and insurance issues,
easing significant challenges families face after a loved one's
death.
3:52:24 PM
SENATOR WIELECHOWSKI said noted Alaska does not have estate tax.
He asked if the transfer of a boat or vehicle would count
towards federal estate tax.
3:52:49 PM
MS. O'CONNOR replied that vehicles are included in the gross
estate for federal estate tax purposes and SB 104 does not
change that. If the vehicle passes to a U.S. citizen spouse, no
estate tax applies, however, if it goes to someone else, estate
tax may be owed.
3:53:28 PM
SENATOR WIELECHOWSKI asked whether creditors can collect against
a boat or vehicle asset if the estate has liabilities and that
asset is transferred.
3:54:03 PM
MS. O'CONNOR requested confirmation that the question was
talking about a general estate liability, not a lien on the
vehicle.
SENATOR WIELECHOWSKI answered yes.
MS. O'CONNOR replied that SB 104 does not provide an exemption
for vehicles and boats. She referenced SB 104, Section 3, page
3, lines 24-27,[AS 13.33.401 (j)], "...the state may enforce
liability against a boat or vehicle transferred at the owner's
death...
3:55:17 PM
SENATOR WIELECHOWSKI asked if the deceased co-owned a boat,
would the share be transferred upon death and how would it work
if the new owner wanted to sell or not keep their share.
3:56:01 PM
MS. O'CONNOR replied that without SB 104, a non-married co-owner
of a boat could still transfer only their share at death. The
beneficiary designation would apply only to that person's
interest, and the title would still list both owners. She noted
that SB 104 doesn't change that outcome, and in such cases, the
transfer-on-death designation might not be used.
3:57:43 PM
MR. WALKER replied that under [AS 13.33.401] (a), a TOD vehicle
title only takes effect upon the death of the sole owner or the
last surviving joint owner. It does not apply to just one co-
owner's fractional interest.
3:58:13 PM
SENATOR WIELECHOWSKI asked if he owned a boat with Senator
Kawasaki, and died, would his daughter acquire the share.
3:58:31 PM
MR. WALKER replied that his daughter would not acquire his share
because the other owner, Senator Kawasaki is still living.
SENATOR WIELECHOWSKI asked if Senator Kawasaki died would his
daughter get the boat.
MR. WALKER replied that it depends on how the boat is titled. He
said unlike real property, vehicle titles can be listed as "and"
or "or" between owners. An "or" title is usually interpreted to
grant survivorship rights, meaning the vehicle passes to the
surviving owner. However, under the language of SB 104, a
transfer-on-death designation would not apply to just one
owner's share.
4:00:31 PM
LINDA HULBERT, Agent, New York Life Insurance, Fairbanks,
Alaska, testified by invitation on SB 104 and stated that the
bill helps everyday people transfer assets like boats or
vehicles without probate, avoiding delays and allowing continued
use for family or business. She said TOD titles make the process
smoother, reduce court involvement, and are easy to revoke if
needed. She emphasized a TOD is flexible, practical tool that
simplifies estate planning and encourages more people to use it.
4:03:08 PM
SENATOR WIELECHOWSKI asked if there is a liability, such as a
mortgage or loan, on the boat or car, does the debt transfer to
the beneficiary.
4:03:22 PM
MS. HULBERT answered yes. She said beneficiaries can disclaim a
boat or vehicle if they don't want it, whether for financial or
personal reasons. She suggested attorneys clarify the legal
details.
4:04:19 PM
SENATOR WIELECHOWSKI asked if a boat or vehicle is transferred
and later the estate is found to lack sufficient funds, is the
recipient still responsible for the debt if they already sold or
gave away the asset.
4:04:53 PM
MS. RIEKKOLA answered that SB 104 mirrors the transfer-on-death
deed process for handling creditors. Creditors have one year
from the date of death to make claims. If someone accepts a
vehicle through a transfer-on-death title, they also accept any
liabilities attached, and if they later sell the asset, they
remain responsible for those obligations.
4:06:48 PM
CHAIR KAWASAKI asked how SB 104 applies when someone owns both a
vehicle with a TOD title and a home used as a licensed assisted
living facility, since the real property falls under a different
statute.
4:07:41 PM
MS. O'CONNOR replied that if a vehicle is titled to an
individual, it can transfer to beneficiaries under SB 104,
regardless of its use. Similarly, a house under a revocable TOD
deed would pass to the named beneficiary. He noted that
regulatory requirements may involve notifying the state about
ownership changes, which is outside their expertise. She added
that assisted living homes and related vehicles are often titled
under an entity like an LLC, in which case this statute would
not apply.
4:09:43 PM
MS. RIEKKOLA clarified that SB 104 is meant to address simpler,
lower-income situations, like transferring a car to children or
a family fishing vessel, rather than complex business scenarios.
She stated that businesses with significant liabilities, such as
assisted living facilities, should be structured as LLCs with
legal counsel. Overall, SB 104 effectively streamlines
straightforward cases.
4:10:48 PM
SENATOR WIELECHOWSKI questioned the accuracy of the statute
referenced in SB 104, page 5, lines 2930, which cites AS
28.10.201 for vehicle titles. He suggested this may be incorrect
and that AS 28.10.011 or another section might be the proper
citation, urging a review of the reference.
4:11:39 PM
MS. COLQUHOUN stated that, to her understanding, the section
discusses vehicles that can be titled through the DMV. She said
it was reviewed multiple times to clarify distinctions, such as
between manufactured homes with and without foundations, however
she is willing to reread it to confirm accuracy.
4:12:37 PM
CHAIR KAWASAKI opened public testimony on SB 104; finding none;
public testimony was kept open.
4:14:14 PM
CHAIR KAWASAKI held SB 104 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB0160A.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 160 |
| sponsor SB 160.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 160 |
| sectional SB 160.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 160 |
| SB 104.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 104 |
| SB 104 - Sponsor Statement.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 104 |
| SB 104 - Sectional.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 104 |
| Explanation of Changes A to N SB 167.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 167 |
| CS SB 167.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 167 |
| SB 104 - Powerpoint.pdf |
SSTA 5/1/2025 3:30:00 PM |
SB 104 |