Relating to creation of transfer on death deeds and to disclaimers of an interest in real property

A transferor may revoke a transfer on death deed by acknowledging and recording an inconsistent transfer on death deed, or an instrument of revocation or inter vivos deed that expressly revokes the deed. A transfer on death dead is nontestamentary, and the capacity required to make or revoke a transfer on death deed is the same capacity required to make a will. A transfer on death deed is effective even if the beneficiary does not receive notice or delivery of the deed during the transferor’s lifetime, and even if the transferor does not receive consideration for the deed. During the transferor’s lifetime, a transfer on death deed does not affect the transferor’s interest in the property, including the right to transfer or encumber the property, nor does the transfer on death deed create a legal or equitable interest in favor of the designated beneficiary or subject the property to claims of a creditor of the designated beneficiary. If the transferor transfers the property that is the subject of a transfer of death deed before the transferor’s death, the transfer on death deed is of no effect at the death of the transferor.535 (felonious death), the property is transferred to the designated beneficiary if the designated beneficiary is alive. If the designated beneficiary predeceases the transferor, the interest of the designated beneficiary lapses.41 (recording), a beneficiary who takes property under a transfer on death deed takes the property subject to all conveyances, encumbrances, assignments, contracts, mortgages, liens, and other interests to which the property is subject at the transferor’s death. If the transferor owns the property as a joint tenant or as a tenant by the entirety, the transfer on death deed is only effective if the transferor is the last surviving joint tenant or tenant by the entirety. A beneficiary may disclaim all or part of the beneficiary’s interest as provided by Code chapter 633E (uniform disclaimer of property interest Act). To the extent that the transferor’s probate estate is insufficient to satisfy an allowed claim against the estate or a statutory allowance to a surviving spouse or child, the estate may enforce the liability against property transferred at the transferor’s death by a transfer on death deed. The bill provides an optional form of a transfer on death deed and an optional form for the revocation of a transfer on death deed. The bill does not affect any deed executed and recorded prior to the effective date of the bill and applies to a transfer on death deed made before, on, or after the effective date of the bill by a transferor dying on or after the effective date of the bill. The bill makes conforming changes.