Legislature(2025 - 2026)BUTROVICH 205
03/20/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SJR12 | |
| SB104 | |
| SJR11 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SJR 12 | TELECONFERENCED | |
| *+ | SB 104 | TELECONFERENCED | |
| *+ | SJR 11 | TELECONFERENCED | |
SB 104-VEHICLES/BOATS: TRANSFER ON DEATH TITLE
1:48:44 PM
CHAIR BJORKMAN reconvened the meeting 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."
1:49:10 PM
SENATOR SCOTT KAWASAKI, District P, Alaska State Legislature,
Juneau, Alaska, Sponsor of SB 104, introduced himself.
1:49:18 PM
JENNA COLQUHOUN, Staff, Senator Scott Kawasaki, Alaska State
Legislature, Juneau, Alaska, introduced herself.
1:49:22 PM
SENATOR KAWASAKI paraphrased from the sponsor statement for SB
104:
[Original punctuation provided.]
Senate Bill 104
Sponsor Statement
"An act relating to the transfer of a title on the
death of the owner; and providing for an effective
date."
The death of a family member is a difficult experience
for any person. It is an emotional process we all have
or will face that drains an individual's stamina and
motivation. Add to that the legal complications and
costs this familial absence inflicts on a household,
it is no wonder that a death in the family is one of
the most stressful events in a person life. Going
through the probate process can cost a family
thousands, potentially tens of thousands of dollars in
legal and filing fees at a time when an individual is
less able to cope with such financial pressure. SB 104
would provide an option for Alaskans to alleviate such
pressures when a loved one passes.
SB 104 aims to continue the work of the Uniform Real
Property Transfer on Death Act (URPTDA). This piece of
legislation passed in 2014 with unanimous support from
both the House and the Senate and created the Transfer
on Death (TOD) deed, which allows for nonprobate
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 which can take anywhere from 6
months to several years to complete. At this time, a
TOD deed cannot be issued for boats and other vehicles
for which the DMV issues titles. SB 104 would
ameliorate this situation.
This piece of legislation would continue the ongoing
effort to reduce costs and stress of probate for
Alaskans by creating a streamlined service through the
DMV through which any Alaskan can designate
beneficiaries for both vehicles and boats by filling
out a simple form. With this TOD deed, an Alaskan
would be able to gain access to a vehicle or boat much
faster than if they had to go through the probate
process. This may seem like a moot point but consider
a situation where a family runs a fishing business
from their family boat. That boat is a crucial part of
the business and not being able to use it for even a
month could lead to bankruptcy. SB 104 would be a
ensure such a situation would not happen.
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 would be self-sustaining
though the fees collected from the individuals who
file for the TOD deeds.
At no cost to the state, SB 104 will allow countless
Alaskans to pass down boats, vehicles, and some
manufactured homes to beneficiaries with more ease and
will help simplify the potentially complicated,
costly, lengthy, and painful process of probate
following the death of a loved one.
1:51:57 PM
SENATOR TOBIN noted her previous work experience helping
individuals craft estate plans for charitable giving and
commented that the transfer of assets is complicated in Alaska.
She asked about potential associated costs, e.g. slip fees for
boats, and whether these would transfer to the new owner.
1:52:40 PM
MS. COLQUHOUN shared her understanding that all encumbrances and
liens associated with a particular boat or vehicle would be
transferred to the beneficiary with the transfer on death (TOD)
title.
1:53:02 PM
SENATOR KIEHL directed attention to page 3, line 17 of SB 104
and asked whether a beneficiary who disclaimed their interest in
the boat or vehicle would be free from associated fees.
1:53:42 PM
MS. COLQUHOUN shared her understanding that if the beneficiary
disclaims the boat or vehicle, they would be free from any
associated fees.
1:54:06 PM
SENATOR SHOWER noted the difference between a will and a trust
and asked whether trusts should be included. He wondered how SB
104 would change if trusts were included. He shared his
understanding that trusts are simpler.
1:54:58 PM
MS. COLQUHOUN deferred the question.
1:55:31 PM
LINDA HULBERT, Agent, New York Life, Fairbanks, Alaska, said
that she is not qualified to answer the question of whether
trusts should be included.
1:56:47 PM
SENATOR KIEHL directed attention to page 3, line 5 of SB 104,
which states that a title obtained via TOD is effective without
consideration. He shared his understanding that this means the
person to whom the title is transferred is not required to pay.
He asked if there is a problem with consideration of any kind
while the owner is alive. He offered examples to illustrate his
question. He asked if this would impact the efficacy of TOD.
1:57:46 PM
MS. COLQUHOUN replied that "without consideration" means that
the beneficiary does not need to be notified that they are the
TOD beneficiary. She explained that the TOD title does not
impact the owner's ability to make decisions related to the
vehicle prior to their death. If the owner sells the boat or
vehicle, the associated TOD title is void.
1:58:22 PM
SENATOR KIEHL acknowledged that page 3, lines 2-3 states that
the beneficiary does not need to be notified or to accept the
TOD title to be effective. He directed attention to page 3, line
5 and reiterated his understanding that "consideration" refers
to monetary consideration. He asked for clarification.
1:58:39 PM
MS. COLQUHOUN clarified that, with respect to monetary
consideration, the TOD beneficiary would not have to pay for the
TOD deed. This responsibility lies with the TOD owner. If the
owner sold the associated vehicle, the TOD beneficiary would not
receive any of the monetary consideration.
SENATOR KIEHL offered a hypothetical scenario to illustrate his
question. He asked whether the phrase "without consideration"
could potentially invalidate a TOD title due to a previous
financial consideration.
1:59:42 PM
MS. COLQUHOUN replied that she did not have the answer and said
she would provide this information at a later time.
1:59:54 PM
SENATOR SHOWER commented that the distinction of what occurs
while the owner is alive versus after the owner's death relates
to his earlier question of whether to include trusts in SB 104.
He asked to consider this further when that question is
addressed.
2:00:12 PM
CHAIR BJORKMAN announced invited testimony on SB 104.
2:00:29 PM
ABIGAIL O'CONNOR, Attorney, O'Connor Law LLC, Anchorage, Alaska,
testified by invitation on SB 104. She expressed support for
this legislation. She said that vehicles pose significant
challenges for estates and offered examples to illustrate this.
She stated that SB 104 provides a solution for those challenges.
She emphasized that these changes would make Alaskans lives
easier and reduce the stress that surviving family members
experience after the death of a loved one.
2:03:23 PM
MS. O'CONNOR turned her attention to questions. In response to a
question related to beneficiary disclaiming the interest, she
explained that a beneficiary can disclaim a gift. If this
happens, the vehicle is passed on to the estate, as if the
beneficiary had predeceased the car owner. With respect to a
trust being treated as beneficiary, she explained that (as
written) SB 104 would allow this. However, for liability
purposes, she does not generally advise clients to place vehicle
or boat titles in the name of their trust. With respect to
consideration, she offered an example of someone buying a future
interest to illustrate the question and opined that this would
be highly unusual. She opined that it would be more likely for
someone to pay the vehicle owner in order to become co-owner of
the vehicle; in this case, the title would automatically
transfer on death (without a TOD title). She said she does not
believe the language related to consideration would cause any
challenges.
2:06:43 PM
SENATOR SHOWER wondered whether it would be better to define
"trust."
2:07:46 PM
LINDA HUBERT, Agent, New York Life Insurance Company, Fairbanks,
Alaska, testified by invitation on SB 104. She gave a brief
history of her work in the life insurance industry in Alaska.
She emphasized that a TOD title is a revocable decision. She
opined that a TOD title makes sense and would solve problems for
many. She emphasized the importance of creating greater ease for
those in remote locations. She emphasized the importance of
estate planning, which she said can be a difficult process. She
pointed out that vehicles and boats often place an estate into
probate and SB 104 would avoid this. She reiterated that
simplifying the process creates greater ease throughout this
process and expressed her support of SB 104.
2:11:32 PM
CHAIR BJORKMAN led a chorus of "Happy Birthday" for Senator
Kawasaki.
2:12:03 PM
CHAIR BJORKMAN held SB 104 in committee.