| 1 | 1 | | 25 LC 48 1618 |
|---|
| 2 | 2 | | House Bill 899 |
|---|
| 3 | 3 | | By: Representatives Jenkins of the 136 |
|---|
| 4 | 4 | | th |
|---|
| 5 | 5 | | , Bonner of the 73 |
|---|
| 6 | 6 | | rd |
|---|
| 7 | 7 | | , Leverett of the 123 |
|---|
| 8 | 8 | | rd |
|---|
| 9 | 9 | | , and Camp |
|---|
| 10 | 10 | | of the 135 |
|---|
| 11 | 11 | | th |
|---|
| 12 | 12 | | |
|---|
| 13 | 13 | | A BILL TO BE ENTITLED |
|---|
| 14 | 14 | | AN ACT |
|---|
| 15 | 15 | | To amend Chapter 17 of Title 44 of the Official Code of Georgia Annotated, relating to |
|---|
| 16 | 16 | | 1 |
|---|
| 17 | 17 | | transfer-on-death deeds, so as to modify certain provisions regarding transfer-on-death deeds;2 |
|---|
| 18 | 18 | | to provide for a definition; to provide for the acceptance of a real estate transfer; to provide3 |
|---|
| 19 | 19 | | for revocation; to provide for limitations; to provide for curing defects; to amend Chapter4 |
|---|
| 20 | 20 | | 3 of Title 53 of the Official Code of Georgia Annotated, relating to year's support, so as to5 |
|---|
| 21 | 21 | | provide for precedence of transfer-on-death deeds; to provide for related matters; to provide6 |
|---|
| 22 | 22 | | for an effective date; to repeal conflicting laws; and for other purposes.7 |
|---|
| 23 | 23 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 |
|---|
| 24 | 24 | | SECTION 1.9 |
|---|
| 25 | 25 | | Chapter 17 of Title 44 of the Official Code of Georgia Annotated, relating to10 |
|---|
| 26 | 26 | | transfer-on-death deeds, is amended by revising Code Section 44-17-2, relating to11 |
|---|
| 27 | 27 | | requirements, as follows:12 |
|---|
| 28 | 28 | | "44-17-2.13 |
|---|
| 29 | 29 | | (a)(1) As used in this Code section, the term 'interested person' means any individual |
|---|
| 30 | 30 | | 14 |
|---|
| 31 | 31 | | designated by a grantor as a beneficiary will be considered as having direct and tangible15 |
|---|
| 32 | 32 | | H. B. 899 |
|---|
| 33 | 33 | | - 1 - 25 LC 48 1618 |
|---|
| 34 | 34 | | interest in real estate for the purpose of requesting a copy of a certificate of death from16 |
|---|
| 35 | 35 | | the Office of Vital Records.17 |
|---|
| 36 | 36 | | (2) An interest in real estate may be titled in a transfer-on-death form by recording a18 |
|---|
| 37 | 37 | | deed, signed by the record owner of the interest, designating a grantee beneficiary or19 |
|---|
| 38 | 38 | | beneficiaries of the interest. Such deed shall transfer ownership of such interest upon to20 |
|---|
| 39 | 39 | | each interested person once such interested person has accepted his or her individual21 |
|---|
| 40 | 40 | | interest by filing the requisite affidavit as provided for in subsection (d) of this Code22 |
|---|
| 41 | 41 | | section within nine months after the death of the record owner. A transfer-on-death deed23 |
|---|
| 42 | 42 | | need not be supported by consideration, subject to the following conditions:24 |
|---|
| 43 | 43 | | (A) A Form PT-61 shall not be filed with a transfer-on-death deed filed by the grantor;25 |
|---|
| 44 | 44 | | (B) The grantor has the right to add alternate interested persons within the deed in case26 |
|---|
| 45 | 45 | | a designated beneficiary either predeceases the grantor or dies during the acceptance27 |
|---|
| 46 | 46 | | period before accepting the property;28 |
|---|
| 47 | 47 | | (C) The grantor may convey a beneficiary interest to a living trust by naming the29 |
|---|
| 48 | 48 | | trustee as a designated grantee beneficiary;30 |
|---|
| 49 | 49 | | (D) The grantor shall not create a new trust by using a transfer-on-death deed;31 |
|---|
| 50 | 50 | | (E) The grantor must have the same legal capacity required to enter into a contract in32 |
|---|
| 51 | 51 | | order to execute a transfer-on-death deed; and33 |
|---|
| 52 | 52 | | (F) The only time an attorney in fact can execute a transfer-on-death deed on behalf of34 |
|---|
| 53 | 53 | | a grantor is when there has been a grant of specific authority contained within the35 |
|---|
| 54 | 54 | | power of attorney to create or change a beneficiary designation.36 |
|---|
| 55 | 55 | | (b) The signature, consent, or agreement of or notice to a grantee beneficiary or37 |
|---|
| 56 | 56 | | beneficiaries of a transfer-on-death deed shall not be required for any purpose during the38 |
|---|
| 57 | 57 | | lifetime of the record owner.39 |
|---|
| 58 | 58 | | (c) A designated grantee beneficiary may accept real estate pursuant to a transfer-on-death40 |
|---|
| 59 | 59 | | deed only on behalf of himself, herself, or a legal entity over which he or she has proper41 |
|---|
| 60 | 60 | | authority. A beneficiary shall not accept such real estate on behalf of another designated42 |
|---|
| 61 | 61 | | H. B. 899 |
|---|
| 62 | 62 | | - 2 - 25 LC 48 1618 |
|---|
| 63 | 63 | | beneficiary. However, if the designated beneficiary is a ward or minor, a legal guardian43 |
|---|
| 64 | 64 | | or legal conservator may accept real estate pursuant to a transfer-on-death deed on behalf44 |
|---|
| 65 | 65 | | of such ward or minor.45 |
|---|
| 66 | 66 | | (c)(d) Each designated grantee beneficiary wishing to To accept real estate pursuant to a46 |
|---|
| 67 | 67 | | transfer-on-death deed, a designated grantee beneficiary shall execute an affidavit47 |
|---|
| 68 | 68 | | affirming:48 |
|---|
| 69 | 69 | | (1) Verification of the record owner's death;49 |
|---|
| 70 | 70 | | (2) Whether the record owner and the designated grantee beneficiary were married at the50 |
|---|
| 71 | 71 | | time of the record owner's death; and51 |
|---|
| 72 | 72 | | (3) A legal description of the real estate.52 |
|---|
| 73 | 73 | | (d)(e) The designated grantee beneficiary shall attach a copy of the record owner's death53 |
|---|
| 74 | 74 | | certificate to the affidavit provided for in subsection (c)(d) of this Code section. For a54 |
|---|
| 75 | 75 | | record owner's death occurring on or after July 1, 2024, the designated grantee beneficiary55 |
|---|
| 76 | 76 | | shall record such affidavit with a Form PT-61 and related documents with the office of the56 |
|---|
| 77 | 77 | | clerk of superior court of the county where the real estate is located within nine months of57 |
|---|
| 78 | 78 | | the record owner's death or the interest in the property shall revert to the deceased record58 |
|---|
| 79 | 79 | | owner's estate; provided, however, that for a record owner's death occurring before July 1,59 |
|---|
| 80 | 80 | | 2024, such recording of the affidavit provided for in subsection (c) of this Code section and60 |
|---|
| 81 | 81 | | related documents by the designated grantee beneficiary or beneficiaries shall not be61 |
|---|
| 82 | 82 | | subject to the nine-month time limitation.62 |
|---|
| 83 | 83 | | (f) A beneficiary affidavit recorded pursuant to this Code section before July 1, 2025, in63 |
|---|
| 84 | 84 | | which one or more of the named beneficiaries of a transfer-on-death deed explicitly accepts64 |
|---|
| 85 | 85 | | the interests being conveyed by the deed on behalf of all or some of the beneficiaries65 |
|---|
| 86 | 86 | | named in the affidavit shall be effective to accept such interests if executed by at least one66 |
|---|
| 87 | 87 | | of the named beneficiaries accepting such interests.67 |
|---|
| 88 | 88 | | (g)(1) Until a property interest is accepted by a designated beneficiary, the personal68 |
|---|
| 89 | 89 | | representative of a solvent estate is responsible for mortgage payments, property taxes,69 |
|---|
| 90 | 90 | | H. B. 899 |
|---|
| 91 | 91 | | - 3 - 25 LC 48 1618 |
|---|
| 92 | 92 | | and any repairs that render the property in imminent danger of being destroyed until the70 |
|---|
| 93 | 93 | | property interest is accepted. The estate is entitled to repayment of expenses incurred71 |
|---|
| 94 | 94 | | during such time until the property interest is accepted and shall have a priority lien72 |
|---|
| 95 | 95 | | against the property for any amount that is not repaid within one year after such73 |
|---|
| 96 | 96 | | acceptance.74 |
|---|
| 97 | 97 | | (2) If a property is subject to imminent danger of foreclosure, condemnation, or75 |
|---|
| 98 | 98 | | destruction, the personal representative of an insolvent estate shall notify such designated76 |
|---|
| 99 | 99 | | beneficiary that he or she has four months to accept the interest in the property. Should77 |
|---|
| 100 | 100 | | such designated beneficiary fail to accept within that time period, the estate's personal78 |
|---|
| 101 | 101 | | representative shall have the right to sell the property and pay off all debts, and the79 |
|---|
| 102 | 102 | | remaining proceeds shall revert back to the estate.80 |
|---|
| 103 | 103 | | (h) In any case where the requirements for acceptance of a property interest have not been81 |
|---|
| 104 | 104 | | met, all defects can be cured within nine months so long as the affidavit and the death82 |
|---|
| 105 | 105 | | certificate are filed in accordance with subsection (e) of this Code section."83 |
|---|
| 106 | 106 | | SECTION 2.84 |
|---|
| 107 | 107 | | Said chapter is further amended by revising subsection (a) and by adding a new subsection85 |
|---|
| 108 | 108 | | to Code Section 44-17-4, relating to revocation or amendment, as follows:86 |
|---|
| 109 | 109 | | "(a) A record owner of an interest in real estate who has titled such interest in a87 |
|---|
| 110 | 110 | | transfer-on-death deed form and designated a beneficiary or beneficiaries in the manner88 |
|---|
| 111 | 111 | | provided in this chapter may revoke such designation of the grantee beneficiary or89 |
|---|
| 112 | 112 | | beneficiaries at any time prior to the death of such record owner, by executing,90 |
|---|
| 113 | 113 | | acknowledging, and recording in the office of the clerk of superior court of the county91 |
|---|
| 114 | 114 | | where the real estate is located an instrument revoking such designation. The instrument92 |
|---|
| 115 | 115 | | of revocation shall refer to the initial transfer-on-death deed, shall be signed by the record93 |
|---|
| 116 | 116 | | owner or such record owner's duly authorized attorney-in-fact, and such signature shall be94 |
|---|
| 117 | 117 | | attested by an officer as provided in Code Section 44-2-15 and attested by two one other95 |
|---|
| 118 | 118 | | H. B. 899 |
|---|
| 119 | 119 | | - 4 - 25 LC 48 1618 |
|---|
| 120 | 120 | | witnesses witness. Such revocation may be included in another deed or other instrument96 |
|---|
| 121 | 121 | | of conveyance that is recorded. The signature, consent, or agreement of or notice to the97 |
|---|
| 122 | 122 | | designated grantee beneficiary or beneficiaries to the revocation shall not be required."98 |
|---|
| 123 | 123 | | "(d) In any case where the grantor subsequently sells or conveys an interest in real estate99 |
|---|
| 124 | 124 | | before such grantor's death or conveys an interest in real estate to such grantor's living trust,100 |
|---|
| 125 | 125 | | or where the death of a sole designated beneficiary occurs before acceptance, the101 |
|---|
| 126 | 126 | | transfer-on-death deed intended for conveyance to the designated grantee beneficiary is102 |
|---|
| 127 | 127 | | rendered revoked."103 |
|---|
| 128 | 128 | | SECTION 3.104 |
|---|
| 129 | 129 | | Said chapter is further amended by revising Code Section 44-17-5, relating to grantee105 |
|---|
| 130 | 130 | | beneficiary rights and prior death of designated grantee beneficiary, as follows:106 |
|---|
| 131 | 131 | | "44-17-5.107 |
|---|
| 132 | 132 | | (a) A grantee beneficiary or the beneficiaries of a transfer-on-death deed shall take the108 |
|---|
| 133 | 133 | | interest in real estate of the record owner at upon the acceptance of the interest within nine109 |
|---|
| 134 | 134 | | months of the death of such record owner, free and clear of any claims or interest as to a110 |
|---|
| 135 | 135 | | person who became the spouse of the record owner subsequent to the execution of the111 |
|---|
| 136 | 136 | | transfer-on-death deed, subject to all recorded conveyances, assignments, contracts,112 |
|---|
| 137 | 137 | | mortgages, liens, and security pledges made by the record owner or to which the record113 |
|---|
| 138 | 138 | | owner was subject during the lifetime of such record owner, including, but not limited to,114 |
|---|
| 139 | 139 | | any recorded executory contract of sale, option to purchase, lease, license, easement,115 |
|---|
| 140 | 140 | | mortgage, deed of trust or lien, and to any interest conveyed by the record owner that is less116 |
|---|
| 141 | 141 | | than all of the record owner's interest in the property; provided, however, that a117 |
|---|
| 142 | 142 | | nonconsensual lien against the grantee beneficiary or beneficiaries shall not attach to the118 |
|---|
| 143 | 143 | | property until the recording of the affidavit described in subsections (d) and (e) of Code119 |
|---|
| 144 | 144 | | Section 44-17-2. A transfer-on-death deed takes precedence and priority over any petition120 |
|---|
| 145 | 145 | | for year's support filed upon the death of the grantor.121 |
|---|
| 146 | 146 | | H. B. 899 |
|---|
| 147 | 147 | | - 5 - 25 LC 48 1618 |
|---|
| 148 | 148 | | (b) If one or more of the designated grantee beneficiaries dies prior to the death of the |
|---|
| 149 | 149 | | 122 |
|---|
| 150 | 150 | | record owner, the transfer to those beneficiaries who predecease the record owner shall123 |
|---|
| 151 | 151 | | lapse and shall be deemed revoked, and the lapsed interest shall be split evenly among the |
|---|
| 152 | 152 | | 124 |
|---|
| 153 | 153 | | remaining designated grantee beneficiaries who are living at the time of the death of the125 |
|---|
| 154 | 154 | | record owner and shall not revert back to the estate. In the event the grantee beneficiary126 |
|---|
| 155 | 155 | | or beneficiaries are designated in the deed to be joint tenants with right of survivorship, the127 |
|---|
| 156 | 156 | | death of one or more of the designated grantee beneficiaries prior to the death of the record128 |
|---|
| 157 | 157 | | owner shall not invalidate an otherwise validly created joint tenancy estate as to those129 |
|---|
| 158 | 158 | | designated grantee beneficiaries who are living at the time of the death of the record130 |
|---|
| 159 | 159 | | owner."131 |
|---|
| 160 | 160 | | SECTION 4.132 |
|---|
| 161 | 161 | | Chapter 3 of Title 53 of the Official Code of Georgia Annotated, relating to year's support,133 |
|---|
| 162 | 162 | | is amended by revising Code Section 53-3-5, relating to filing of petition, as follows:134 |
|---|
| 163 | 163 | | "53-3-5.135 |
|---|
| 164 | 164 | | (a) Except as provided by subsection (a) of Code Section 44-17-5, upon Upon the death136 |
|---|
| 165 | 165 | | of any individual leaving an estate solvent or insolvent, the surviving spouse or a guardian137 |
|---|
| 166 | 166 | | or other person acting in on behalf of the surviving spouse or in on behalf of a minor child138 |
|---|
| 167 | 167 | | may file a petition for year's support in the probate court having jurisdiction over the139 |
|---|
| 168 | 168 | | decedent's estate. If the petition is brought by a guardian acting on behalf of a minor child,140 |
|---|
| 169 | 169 | | no additional guardian ad litem shall be appointed for such minor child unless ordered by141 |
|---|
| 170 | 170 | | the court.142 |
|---|
| 171 | 171 | | (b) The petition shall set forth, as applicable, the full name of the surviving spouse, the full143 |
|---|
| 172 | 172 | | name and birthdate birth date of each surviving minor child, and a schedule of the property,144 |
|---|
| 173 | 173 | | including household furniture, that the petitioner proposes to have set apart as year's145 |
|---|
| 174 | 174 | | support. The petition shall describe fully and accurately any real property the petitioner146 |
|---|
| 175 | 175 | | H. B. 899 |
|---|
| 176 | 176 | | - 6 - 25 LC 48 1618 |
|---|
| 177 | 177 | | proposes to have set apart as year's support with a legal description sufficient under the |
|---|
| 178 | 178 | | 147 |
|---|
| 179 | 179 | | laws of this state to pass title to the real property.148 |
|---|
| 180 | 180 | | (c) A petition for year's support shall be filed within 24 months of the date of death of the149 |
|---|
| 181 | 181 | | decedent."150 |
|---|
| 182 | 182 | | SECTION 5.151 |
|---|
| 183 | 183 | | This Act shall become effective upon its approval by the Governor or upon its becoming law152 |
|---|
| 184 | 184 | | without such approval.153 |
|---|
| 185 | 185 | | SECTION 6.154 |
|---|
| 186 | 186 | | All laws and parts of laws in conflict with this Act are repealed.155 |
|---|
| 187 | 187 | | H. B. 899 |
|---|
| 188 | 188 | | - 7 - |
|---|