General Assembly Raised Bill No. 117
February Session, 2016 LCO No. 1236
*01236_______JUD*
Referred to Committee on JUDICIARY
Introduced by:
(JUD)
General Assembly
Raised Bill No. 117
February Session, 2016
LCO No. 1236
*01236_______JUD*
Referred to Committee on JUDICIARY
Introduced by:
(JUD)
AN ACT CONCERNING ADOPTION OF THE UNIFORM REAL PROPERTY TRANSFER ON DEATH ACT.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2016) The provisions of sections 1 to 19, inclusive, of this act may be cited as the Uniform Real Property Transfer on Death Act.
Sec. 2. (NEW) (Effective October 1, 2016) As used in sections 1 to 19, inclusive, of this act:
(1) "Beneficiary" means a person that receives property under a transfer on death deed;
(2) "Designated beneficiary" means a person designated to receive property in a transfer on death deed;
(3) "Joint owner" means an individual who owns property concurrently with one or more other individuals with a right of survivorship. The term includes a joint tenant and tenant by the entirety. The term does not include a tenant in common;
(4) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality or any other legal or commercial entity;
(5) "Property" means an interest in real property located in this state which is transferable on the death of the owner;
(6) "Transfer on death deed" means a deed authorized under sections 1 to 19, inclusive, of this act; and
(7) "Transferor" means an individual who makes a transfer on death deed.
Sec. 3. (NEW) (Effective October 1, 2016) The provisions of sections 1 to 19, inclusive, of this act apply to a transfer on death deed made before, on, or after October 1, 2016, by a transferor dying on or after October 1, 2016.
Sec. 4. (NEW) (Effective October 1, 2016) The provisions of sections 1 to 19, inclusive, of this act do not affect any method of transferring property otherwise permitted under the law of this state.
Sec. 5. (NEW) (Effective October 1, 2016) An individual may transfer property to one or more beneficiaries effective at the transferor's death by a transfer on death deed.
Sec. 6. (NEW) (Effective October 1, 2016) A transfer on death deed is revocable even if the deed or another instrument contains a contrary provision.
Sec. 7. (NEW) (Effective October 1, 2016) A transfer on death deed is nontestamentary.
Sec. 8. (NEW) (Effective October 1, 2016) The capacity required to make or revoke a transfer on death deed is the same as the capacity required to make a will.
Sec. 9. (NEW) (Effective October 1, 2016) A transfer on death deed shall: (1) Contain the essential elements and formalities of a properly recordable inter vivos deed, except that the transfer on death deed shall state that the transfer to the designated beneficiary is to occur at the transferor's death; and (2) be recorded before the transferor's death in the public records in the office of the town clerk of the town where the property is located.
Sec. 10. (NEW) (Effective October 1, 2016) A transfer on death deed shall be effective without: (1) Notice or delivery to or acceptance by the designated beneficiary during the transferor's life; or (2) consideration.
Sec. 11. (NEW) (Effective October 1, 2016) (a) Subject to the provisions of subsection (b) of this section, an instrument is effective to revoke a recorded transfer on death deed, or any part of it, only if the instrument is:
(1) One of the following: (A) A transfer on death deed that revokes the deed or part of the deed expressly or by inconsistency; (B) an instrument of revocation that expressly revokes the deed or part of the deed; or (C) an inter vivos deed that expressly revokes the transfer on death deed or part of the deed; and
(2) Acknowledged by the transferor after the acknowledgment of the deed being revoked and recorded before the transferor's death in the public records in the office of the town clerk of the town where the deed is recorded.
(b) If a transfer on death deed is made by more than one transferor: (1) Revocation by a transferor does not affect the deed as to the interest of another transferor; and (2) a deed of joint owners is revoked only if it is revoked by all of the living joint owners.
(c) After a transfer on death deed is recorded, it may not be revoked by a revocatory act on the deed.
(d) The provisions of this section do not limit the effect of an inter vivos transfer of the property.
Sec. 12. (NEW) (Effective October 1, 2016) During a transferor's life, a transfer on death deed does not:
(1) Affect an interest or right of the transferor or any other owner, including the right to transfer or encumber the property;
(2) Affect an interest or right of a transferee, even if the transferee has actual or constructive notice of the deed;
(3) Affect an interest or right of a secured or unsecured creditor or future creditor of the transferor, even if the creditor has actual or constructive notice of the deed;
(4) Affect the transferor's or designated beneficiary's eligibility for any form of public assistance;
(5) Create a legal or equitable interest in favor of the designated beneficiary; or
(6) Subject the property to claims or process of a creditor of the designated beneficiary.
Sec. 13. (NEW) (Effective October 1, 2016) (a) Except as provided in the transfer on death deed, this section, or in section 45a-257c, 45a-436, 45a-440, 45a-441 or 45a-447 of the general statutes, on the death of the transferor, the following rules apply to property that is the subject of a transfer on death deed and owned by the transferor at death:
(1) Subject to the provisions of subdivision (2) of this subsection, the interest in the property is transferred to the designated beneficiary in accordance with the deed.
(2) The interest of a designated beneficiary is contingent on the designated beneficiary surviving the transferor. The interest of a designated beneficiary that fails to survive the transferor lapses.
(3) Subject to the provisions of subdivision (4) of this subsection, concurrent interests are transferred to the beneficiaries in equal and undivided shares with no right of survivorship.
(4) If the transferor has identified two or more designated beneficiaries to receive concurrent interests in the property, the share of one which lapses or fails for any reason is transferred to the other, or to the others in proportion to the interest of each in the remaining part of the property held concurrently.
(b) Subject to the provisions of section 47-10 of the general statutes, a beneficiary 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. For purposes of this subsection and section 47-10 of the general statutes, the recording of the transfer on death deed is deemed to have occurred at the transferor's death.
(c) If a transferor is a joint owner and is: (1) Survived by one or more other joint owners, the property that is the subject of a transfer on death deed belongs to the surviving joint owner or owners with right of survivorship; or (2) the last surviving joint owner, the transfer on death deed is effective.
(d) A transfer on death deed transfers property without covenant or warranty of title even if the deed contains a contrary provision.
Sec. 14. (NEW) (Effective October 1, 2016) A beneficiary may disclaim all or part of the beneficiary's interest as provided by sections 45a-578 to 45a-585, inclusive, of the general statutes.
Sec. 15. (NEW) (Effective October 1, 2016) (a) To the extent 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.
(b) If more than one property is transferred by one or more transfer on death deeds, the liability under subsection (a) of this section is apportioned among the properties in proportion to their net values at the transferor's death.
(c) A proceeding to enforce the liability under this section shall be commenced not later than eighteen months after the date of the transferor's death.
Sec. 16. (NEW) (Effective October 1, 2016) The following form may be used to create a transfer on death deed. Sections 1 to 19, inclusive, of this act govern the effect of this or any other instrument used to create a transfer on death deed:
(front of form)
REVOCABLE TRANSFER ON DEATH DEED
NOTICE TO OWNER
You should carefully read all information on the other side of this form. You May Want to Consult a Lawyer Before Using This Form.
This form must be recorded before your death, or it will not be effective.
T1 IDENTIFYING INFORMATION
T2 Owner or Owners Making This Deed:
T3 …. Printed name …. Mailing address
T4 …. Printed name …. Mailing address
T5 Legal description of the property: ….
T6 PRIMARY BENEFICIARY
T7 I designate the following beneficiary if the beneficiary survives me.
T8 …. …. Printed name Mailing address, if available
T9 ALTERNATE BENEFICIARY – Optional
T10 If my primary beneficiary does not survive me, I designate the following alternate beneficiary if that beneficiary survives me.
T11 …. …. Printed name Mailing address, if available
T12 TRANSFER ON DEATH
T13 At my death, I transfer my interest in the described property to the beneficiaries as designated above.
T14 Before my death, I have the right to revoke this deed.
T15 SIGNATURE OF OWNER OR OWNERS MAKING THIS DEED
T16 …. Signature [(SEAL)]…. Date
T17 …. Signature [(SEAL)]…. Date
T18 ACKNOWLEDGMENT
T19 (insert acknowledgment for deed here)
T1
IDENTIFYING INFORMATION
T2
Owner or Owners Making This Deed:
T3
….
Printed name
….
Mailing address
T4
….
Printed name
….
Mailing address
T5
Legal description of the property:
….
T6
PRIMARY BENEFICIARY
T7
I designate the following beneficiary if the beneficiary survives me.
T8
…. ….
Printed name Mailing address, if available
T9
ALTERNATE BENEFICIARY – Optional
T10
If my primary beneficiary does not survive me, I designate the following alternate beneficiary if that beneficiary survives me.
T11
…. ….
Printed name Mailing address, if available
T12
TRANSFER ON DEATH
T13
At my death, I transfer my interest in the described property to the beneficiaries as designated above.
T14
Before my death, I have the right to revoke this deed.
T15
SIGNATURE OF OWNER OR OWNERS MAKING THIS DEED
T16
….
Signature
[(SEAL)]….
Date
T17
….
Signature
[(SEAL)]….
Date
T18
ACKNOWLEDGMENT
T19
(insert acknowledgment for deed here)
(back of form)
COMMON QUESTIONS ABOUT THE USE OF THIS FORM
What does the Transfer on Death (TOD) deed do? When you die, this deed transfers the described property, subject to any liens or mortgages (or other encumbrances) on the property at your death. Probate is not required. The TOD deed has no effect until you die. You can revoke it at any time. You are also free to transfer the property to someone else during your lifetime. If you do not own any interest in the property when you die, this deed will have no effect.
How do I make a TOD deed? Complete this form. Have it acknowledged before a notary public or other individual authorized by law to take acknowledgments. Record the form in each town where any part of the property is located. The form has no effect unless it is acknowledged and recorded before your death.
Is the "legal description" of the property necessary? Yes.
How do I find the "legal description" of the property? This information may be on the deed you received when you became an owner of the property. This information may also be available in the office of the town clerk for the town where the property is located. If you are not absolutely sure, consult a lawyer.
Can I change my mind before I record the TOD deed? Yes. If you have not yet recorded the deed and want to change your mind, simply tear up or otherwise destroy the deed.
How do I "record" the TOD deed? Take the completed and acknowledged form to the office of the town clerk of the town where the property is located. Follow the instructions given by the town clerk to make the form part of the official property records. If the property is in more than one town, you should record the deed in each town.
Can I later revoke the TOD deed if I change my mind? Yes. You can revoke the TOD deed. No one, including the beneficiaries, can prevent you from revoking the deed.
How do I revoke the TOD deed after it is recorded? There are three ways to revoke a recorded TOD deed: (1) Complete and acknowledge a revocation form, and record it in each town where the property is located. (2) Complete and acknowledge a new TOD deed that disposes of the same property, and record it in each town where the property is located. (3) Transfer the property to someone else during your lifetime by a recorded deed that expressly revokes the TOD deed. You may not revoke the TOD deed by will.
I am being pressured to complete this form. What should I do? Do not complete this form under pressure. Seek help from a trusted family member, friend, or lawyer.
Do I need to tell the beneficiaries about the TOD deed? No, but it is recommended. Secrecy can cause later complications and might make it easier for others to commit fraud.
I have other questions about this form. What should I do? This form is designed to fit some but not all situations. If you have other questions, you are encouraged to consult a lawyer.
Sec. 17. (NEW) (Effective October 1, 2016) The following form may be used to create an instrument of revocation under section 11 of this act. Sections 1 to 19, inclusive, of this act govern the effect of this or any other instrument used to revoke a transfer on death deed.
(front of form)
REVOCATION OF TRANSFER ON DEATH DEED
T20 NOTICE TO OWNER
T21 This revocation must be recorded before you die or it will not be effective. This revocation is effective only as to the interests in the property of owners who sign this revocation.
T22 IDENTIFYING INFORMATION
T23 Owner or Owners of Property Making This Revocation:
T24 …. Printed name …. Mailing address
T25 …. Printed name …. Mailing address
T26 Legal description of the property: ….
T27 REVOCATION
T28 I revoke all my previous transfers of this property by transfer on death deed.
T29 SIGNATURE OF OWNER OR OWNERS MAKING THIS REVOCATION
T30 …. Signature [(SEAL)]…. Date
T31 …. Signature [(SEAL)]…. Date
T32 ACKNOWLEDGMENT
T33 (insert acknowledgment here)
T20
NOTICE TO OWNER
T21
This revocation must be recorded before you die or it will not be effective. This revocation is effective only as to the interests in the property of owners who sign this revocation.
T22
IDENTIFYING INFORMATION
T23
Owner or Owners of Property Making This Revocation:
T24
….
Printed name
….
Mailing address
T25
….
Printed name
….
Mailing address
T26
Legal description of the property:
….
T27
REVOCATION
T28
I revoke all my previous transfers of this property by transfer on death deed.
T29
SIGNATURE OF OWNER OR OWNERS MAKING THIS REVOCATION
T30
….
Signature
[(SEAL)]….
Date
T31
….
Signature
[(SEAL)]….
Date
T32
ACKNOWLEDGMENT
T33
(insert acknowledgment here)
(back of form)
COMMON QUESTIONS ABOUT THE USE OF THIS FORM
How do I use this form to revoke a Transfer on Death (TOD) deed? Complete this form. Have it acknowledged before a notary public or other individual authorized to take acknowledgments. Record the form in the public records in the office of the town clerk of each town where the property is located. The form must be acknowledged and recorded before your death or it has no effect.
How do I find the "legal description" of the property? This information may be on the TOD deed. It may also be available in the office of the town clerk for the town where the property is located. If you are not absolutely sure, consult a lawyer.
How do I "record" the form? Take the completed and acknowledged form to the office of the town clerk of the town where the property is located. Follow the instructions given by the town clerk to make the form part of the official property records. If the property is located in more than one town, you should record the form in each of those towns.
I am being pressured to complete this form. What should I do? Do not complete this form under pressure. Seek help from a trusted family member, friend, or lawyer.
I have other questions about this form. What should I do? This form is designed to fit some but not all situations. If you have other questions, consult a lawyer.
Sec. 18. (NEW) (Effective October 1, 2016) In applying and construing the provisions of the Uniform Real Property Transfer on Death Act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact said act.
Sec. 19. (NEW) (Effective October 1, 2016) The provisions of sections 1 to 19, inclusive, of this act modify, limit and supersede the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq., but do not modify, limit or supersede Section 101(c) of said act, 15 USC 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of said act, 15 USC Section 7003(b).
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2016 New section
Sec. 2 October 1, 2016 New section
Sec. 3 October 1, 2016 New section
Sec. 4 October 1, 2016 New section
Sec. 5 October 1, 2016 New section
Sec. 6 October 1, 2016 New section
Sec. 7 October 1, 2016 New section
Sec. 8 October 1, 2016 New section
Sec. 9 October 1, 2016 New section
Sec. 10 October 1, 2016 New section
Sec. 11 October 1, 2016 New section
Sec. 12 October 1, 2016 New section
Sec. 13 October 1, 2016 New section
Sec. 14 October 1, 2016 New section
Sec. 15 October 1, 2016 New section
Sec. 16 October 1, 2016 New section
Sec. 17 October 1, 2016 New section
Sec. 18 October 1, 2016 New section
Sec. 19 October 1, 2016 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2016
New section
Sec. 2
October 1, 2016
New section
Sec. 3
October 1, 2016
New section
Sec. 4
October 1, 2016
New section
Sec. 5
October 1, 2016
New section
Sec. 6
October 1, 2016
New section
Sec. 7
October 1, 2016
New section
Sec. 8
October 1, 2016
New section
Sec. 9
October 1, 2016
New section
Sec. 10
October 1, 2016
New section
Sec. 11
October 1, 2016
New section
Sec. 12
October 1, 2016
New section
Sec. 13
October 1, 2016
New section
Sec. 14
October 1, 2016
New section
Sec. 15
October 1, 2016
New section
Sec. 16
October 1, 2016
New section
Sec. 17
October 1, 2016
New section
Sec. 18
October 1, 2016
New section
Sec. 19
October 1, 2016
New section
Statement of Purpose:
To adopt the Uniform Real Property Transfer on Death Act.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]