Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0136 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0136
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7	7	LC000522
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO PROBATE PRACTICE AND PROCEDURE -- UNIFORM REAL PROPERTY
16	16	TRANSFER ON DEATH AC T
17	17	Introduced By: Senators Euer, Kallman, and Burke
18	18	Date Introduced: February 01, 2023
19	19	Referred To: Senate Judiciary
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Title 33 of the General Laws entitled "PROBATE PRACTICE AND 1
24	24	PROCEDURE" is hereby amended by adding thereto the following chapter: 2
25	25	CHAPTER 4.1 3
26	26	UNIFORM REAL PROPERTY TRANSFER ON DEATH ACT 4
27	27	33-4.1-1. Short title. 5
28	28	This chapter shall be known and may be cited as the "Uniform Real Property Transfer on 6
29	29	Death Act". 7
30	30	33-4.1-2. Definitions. 8
31	31	As used in this chapter: 9
32	32	(1) "Beneficiary" means a person who receives property under a transfer on death deed. 10
33	33	(2) "Class gift" means a transfer to a group of persons who are classified by their 11
34	34	relationship to one another or the transferor, and who are not individually named in the transferring 12
35	35	document. 13
36	36	(3) "Designated beneficiary" means a person designated to receive property in a transfer 14
37	37	on death deed. 15
38	38	(4) "Individual" means a natural person. 16
39	39	(5)(i) "Joint owner" means an individual who owns property concurrently with one or more 17
40	40	other individuals with a right of survivorship. 18
41	41
42	42
43	43	LC000522 - Page 2 of 10
44	44	(ii) "Joint owner" includes a joint tenant, owner of community property with a right of 1
45	45	survivorship, and tenant by the entirety. 2
46	46	(iii) "Joint owner" does not include a tenant in common or owner of community property 3
47	47	without a right of survivorship. 4
48	48	(6) "Natural person" means a human being. 5
49	49	(7) "Person" means an individual, corporation, business trust, estate, trust, partnership, 6
50	50	limited liability company, association, joint venture, public corporation, government or 7
51	51	governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. 8
52	52	(8) "Property" means an interest in real property located in this state that is transferable on 9
53	53	the death of the owner. 10
54	54	(9) "Transfer on death deed" means a deed authorized under this chapter. 11
55	55	(10) "Transferor" means an individual, in their individual capacity, who makes a transfer 12
56	56	on death deed. 13
57	57	33-4.1-3. Applicability. 14
58	58	This chapter applies to a transfer on death deed made before, on, or after January 1, 2024, 15
59	59	by a transferor dying on or after January 1, 2024. 16
60	60	33-4.1-4. Nonexclusivity. 17
61	61	This chapter does not affect any method of transferring property otherwise permitted under 18
62	62	the law of this state. 19
63	63	33-4.1-5. Transfer on death deed authorized. 20
64	64	(a) An individual may transfer property to one or more named beneficiaries effective at 21
65	65	the transferor's death by a transfer on death deed. 22
66	66	(b) A class gift may not be made by a transfer on death deed. 23
67	67	33-4.1-6. Transfer on death deed revocable. 24
68	68	A transfer on death deed is revocable even if the deed or another instrument contains a 25
69	69	contrary provision. 26
70	70	33-4.1-7. Transfer on death deed nontestamentary. 27
71	71	A transfer on death deed is nontestamentary. 28
72	72	33-4.1-8. Capacity of transferor. 29
73	73	The capacity required to make or revoke a transfer on death deed is the same as that 30
74	74	required to make a will. 31
75	75	33-4.1-9. Requirements. 32
76	76	A transfer on death deed shall: 33
77	77	(1) Contain the essential elements and formalities of a properly recordable inter vivos deed; 34
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79	79
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81	81	(2) State that the transfer to the designated beneficiary is to occur at the transferor's death; 1
82	82	and 2
83	83	(3) Be recorded before the transferor's death in the public records in the city or town 3
84	84	recorder's office where the property is located. 4
85	85	33-4.1-10. Notice, delivery, acceptance, consideration not required. 5
86	86	A transfer on death deed is effective without: 6
87	87	(1) Notice or delivery to or acceptance by the designated beneficiary during the transferor's 7
88	88	life; or 8
89	89	(2) Consideration. 9
90	90	33-4.1-11. Revocation by instrument authorized -- Revocation by act not permitted. 10
91	91	(a) Subject to subsection (b) of this section, an instrument is effective to revoke a recorded 11
92	92	transfer on death deed, or any part of it, only if the instrument: 12
93	93	(1) Is one of the following: 13
94	94	(i) A transfer on death deed that revokes the deed or part of the deed expressly or by 14
95	95	inconsistency; 15
96	96	(ii) An instrument of revocation that expressly revokes the deed or part of the deed; or 16
97	97	(iii) An inter vivos deed that revokes the transfer on death deed or part of the deed expressly 17
98	98	or by inconsistency; and 18
99	99	(2) Is acknowledged by the transferor after the acknowledgment of the deed being revoked 19
100	100	and recorded in the public records in the office of the city or town recorder where the deed is 20
101	101	recorded before the transferor's death. 21
102	102	(b) If a transfer on death deed is made by more than one transferor: 22
103	103	(1) Revocation by a transferor does not affect the deed as to the interest of another 23
104	104	transferor; and 24
105	105	(2) A deed of joint owners is revoked only if it is revoked by all of the living joint owners. 25
106	106	(c) After a transfer on death deed is recorded, it may not be revoked by a revocatory act on 26
107	107	the deed. 27
108	108	(d) This section does not limit the effect of an inter vivos transfer of the property. 28
109	109	(e) Property subject to a revocation of a transfer on death deed shall adeem, and 29
110	110	nonademption statutes shall be inapplicable to the deed. 30
111	111	33-4.1-12. Effect of transfer on death deed during transferor's life. 31
112	112	During a transferor's life, a transfer on death deed does not: 32
113	113	(1) Affect an interest or right of the transferor or any other owner, including the right to 33
114	114	transfer or encumber the property; 34
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116	116
117	117	LC000522 - Page 4 of 10
118	118	(2) Affect an interest or right of a transferee, even if the transferee has actual or constructive 1
119	119	notice of the deed; 2
120	120	(3) Affect an interest or right of the transferor's secured or unsecured creditors or future 3
121	121	creditors, even if they have actual or constructive notice of the deed; 4
122	122	(4) Affect the transferor's or designated beneficiary's eligibility for any form of public 5
123	123	assistance; 6
124	124	(5) Create a legal or equitable interest in favor of the designated beneficiary; or 7
125	125	(6) Subject the property to claims or process of the designated beneficiary's creditors. 8
126	126	33-4.1-13. Effect of transfer on death deed at transferor's death. 9
127	127	(a) Except as otherwise provided in the transfer on death deed and chapter 1.1 of this title, 10
128	128	on the death of the transferor, the following rules apply to property that is the subject of a transfer 11
129	129	on death deed and owned by the transferor at death. 12
130	130	(1) Subject to subsection (a)(2) of this section, the interests in the property are transferred 13
131	131	to the designated beneficiaries in accordance with the deed. 14
132	132	(2) The interest of a designated beneficiary is contingent on the designated beneficiary 15
133	133	surviving the transferor and the interest of a designated beneficiary that fails to survive the 16
134	134	transferor lapses. 17
135	135	(3) Subject to subsection (a)(4) of this section, concurrent interests are transferred to the 18
136	136	beneficiaries in equal and undivided shares with no right of survivorship, unless otherwise specified 19
137	137	in the transfer on death deed. 20
138	138	(4) If the transferor has identified two (2) or more designated beneficiaries to receive 21
139	139	concurrent interests in the property, the share of one that lapses or fails for any reason is transferred 22
140	140	to the other, or to the others in proportion to the interest of each in the remaining part of the property 23
141	141	held concurrently. 24
142	142	(b) A beneficiary takes the property subject to all conveyances, encumbrances, 25
143	143	assignments, contracts, mortgages, liens, and other interests to which the property is subject at the 26
144	144	transferor's death. For purposes of this subsection, the recording of the transfer on death deed is 27
145	145	considered to have occurred at the transferor's death. 28
146	146	(c) If a transferor is a joint owner and is: 29
147	147	(1) Survived by one or more other joint owners, the property that is the subject of a transfer 30
148	148	on death deed belongs to the surviving joint owners with right of survivorship; or 31
149	149	(2) The last surviving joint owner, the transfer on death deed is effective. 32
150	150	(d) A transfer on death deed transfers property without covenant or warranty of title even 33
151	151	if the deed contains a contrary provision. 34
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155	155	(e) Following the death of the transferor, an affidavit shall be recorded in the office of the 1
156	156	recorder of the city or town in which the affected property is located. Each affidavit shall: 2
157	157	(1) Contain a legal description of the real property that is affected; 3
158	158	(2) Reference the entry number and the book and page of the previously recorded transfer 4
159	159	on death deed; and 5
160	160	(3) Have attached as an exhibit, a copy of the death certificate or other document issued by 6
161	161	a governmental agency certifying the transferor's death. 7
162	162	33-4.1-14. Disclaimer. 8
163	163	A beneficiary may disclaim all or part of the beneficiary's interest. 9
164	164	33-4.1-15. Liability for creditor claims and statutory allowances. 10
165	165	(a) To the extent the transferor's probate estate is insufficient to satisfy an allowed claim 11
166	166	against the estate or a statutory allowance to a surviving spouse or child, only the estate may enforce 12
167	167	the liability against property transferred at the transferor's death by a transfer on death deed. 13
168	168	(b) If more than one property is transferred by one or more transfer on death deeds, the 14
169	169	liability under subsection (a) of this section is apportioned among the properties in proportion to 15
170	170	their net values at the transferor's death. 16
171	171	(c) A probate proceeding to enforce the liability under this section shall be commenced not 17
172	172	later than twelve (12) months after the transferor's death. 18
173	173	(d) The estate may expressly waive the estate's claim against the property. 19
174	174	33-4.1-16. Form of transfer on death deed. 20
175	175	The following form may be used to create a transfer on death deed. The other sections of 21
176	176	this chapter govern the effect of this or any other instrument used to create a transfer on death deed: 22
177	177	(front of form) 23
178	178	REVOCABLE TRANSFER ON DEATH DEED FORM 24
179	179	NOTICE TO OWNER -- You should carefully read all information on the other side of 25
180	180	this form. You May Want to Consult a Lawyer Before Using This Form. 26
181	181	This form must be recorded before your death, or it will not be effective. The beneficiary 27
182	182	must be a named person. 28
183	183	IDENTIFYING INFORMATION -- Owner or Owners Making This Deed: 29
184	184	_________________________ _____________________________ 30
185	185	Printed name Mailing address 31
186	186	_________________________ _____________________________ 32
187	187	Printed name Mailing address 33
188	188	Legal description of the property:___________________________________________ 34
189	189
190	190
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192	192	______________________________________________________________________ 1
193	193	PRIMARY BENEFICIARY -- I designate the following beneficiary if the beneficiary 2
194	194	survives me: 3
195	195	_________________________ _____________________________ 4
196	196	Printed name Mailing address, if available 5
197	197	ALTERNATE BENEFICIARY (Optional) -- If my primary beneficiary does not survive 6
198	198	me, I designate the following alternate beneficiary if that beneficiary survives me: 7
199	199	_________________________ _____________________________ 8
200	200	Printed name Mailing address, if available 9
201	201	TRANSFER ON DEATH -- At my death, I transfer my interest in the described property 10
202	202	to the beneficiaries as designated above. Before my death, I have the right to revoke this deed. 11
203	203	SIGNATURE OF OWNER OR OWNERS MAKING THIS DEED 12
204	204	_______________________________ __________________ [(SEAL)] 13
205	205	Signature Date 14
206	206	_______________________________ __________________ [(SEAL)] 15
207	207	Signature Date 16
208	208	ACKNOWLEDGMENT (insert acknowledgment for deed here) 17
209	209	(BACK OF FORM) 18
210	210	COMMON QUESTIONS ABOUT THE USE OF THIS FORM Q. What does the Transfer 19
211	211	on Death (TOD) deed do? A. When you die, this deed transfers the described property, subject to 20
212	212	any liens or mortgages (or other encumbrances) on the property at your death. Probate is not 21
213	213	required. The TOD deed has no effect until you die. You can revoke it at any time. You are also 22
214	214	free to transfer the property to someone else during your lifetime. If you do not own any interest in 23
215	215	the property when you die, this deed will have no effect. Q. How do I make a TOD deed? A. 24
216	216	Complete this form. Have it acknowledged before a notary public or other individual authorized by 25
217	217	law to take acknowledgments. Record the form in each city or town where any part of the property 26
218	218	is located. The form has no effect unless it is acknowledged and recorded before your death. Q. Is 27
219	219	the "legal description" of the property necessary? A. Yes. Q. How do I find the "legal description" 28
220	220	of the property? A. This information may be on the deed you received when you became an owner 29
221	221	of the property. This information may also be available in the office of the city or town recorder 30
222	222	where the property is located. If you are not absolutely sure, consult a lawyer. Q. Can I change my 31
223	223	mind before I record the TOD deed? A. Yes. If you have not yet recorded the deed and want to 32
224	224	change your mind, simply tear up or otherwise destroy the deed. Q. How do I "record" the TOD 33
225	225	deed? A. Take the completed and acknowledged form to the office of the city or town recorder 34
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227	227
228	228	LC000522 - Page 7 of 10
229	229	where the property is located. Follow the instructions given by the city or town recorder to make 1
230	230	the form part of the official property records. If the property is in more than one city or town, you 2
231	231	should record the deed in each city or town. Q. Can I later revoke the TOD deed if I change my 3
232	232	mind? A. Yes. The TOD deed is revocable. No one, including the beneficiaries, can prevent you 4
233	233	from revoking the deed. Q. How do I revoke the TOD deed after it is recorded? A. There are three 5
234	234	(3) ways to revoke a recorded TOD deed: (1) Complete and acknowledge a revocation form, and 6
235	235	record it in each city or town where the property is located. (2) Complete and acknowledge a new 7
236	236	TOD deed that disposes of the same property, and record it in each city or town where the property 8
237	237	is located. (3) Transfer the property to someone else during your lifetime by a recorded deed that 9
238	238	expressly revokes the TOD deed. You may not revoke the TOD deed by will. Q. I am being 10
239	239	pressured to complete this form. What should I do? A. Do not complete this form under pressure. 11
240	240	Seek help from a trusted family member, a friend, or a lawyer. Q. Do I need to tell the beneficiaries 12
241	241	about the TOD deed? A. No, but it is recommended. Secrecy can cause later complications and 13
242	242	might make it easier for others to commit fraud. Q. If I sign a TOD deed and designate my two (2) 14
243	243	children as beneficiaries, and one of them dies before me, does the interest of my child that dies 15
244	244	before me pass to his or her children? A. No. Everything will go to your surviving child unless you 16
245	245	record a new transfer on death deed to state otherwise. If you have questions regarding how to word 17
246	246	a new transfer on death deed, you are encouraged to consult a lawyer. Q. I have other questions 18
247	247	about this form. What should I do? A. This form is designed to fit some but not all situations. If 19
248	248	you have other questions, you are encouraged to consult a lawyer. 20
249	249	33-4.1-17. Optional form of revocation. 21
250	250	The following form may be used to create an instrument of revocation under this chapter. 22
251	251	The other sections of this chapter govern the effect of this or any other instrument used to revoke a 23
252	252	transfer on death deed. 24
253	253	(front of form) 25
254	254	FULL REVOCATION OF TRANSFER ON DEATH DEED 26
255	255	NOTICE TO OWNER -- This revocation must be recorded before you die or it will not be 27
256	256	effective. This revocation is effective only as to the interests in the property of owners who sign 28
257	257	this revocation. 29
258	258	IDENTIFYING INFORMATION -- Owner or Owners of Property Making This Revocation: 30
259	259	_________________________ _____________________________ 31
260	260	Printed name Mailing address 32
261	261	_________________________ _____________________________ 33
262	262	Printed name Mailing address 34
263	263
264	264
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266	266	Legal description of the property:___________________________________________ 1
267	267	______________________________________________________________________ 2
268	268	REVOCATION -- I revoke all my previous transfers of this property by transfer on death 3
269	269	deed. 4
270	270	SIGNATURE OF OWNER OR OWNERS MAK ING THIS REVOCATION 5
271	271	_______________________________ __________________ [(SEAL)] 6
272	272	Signature Date 7
273	273	_______________________________ __________________ [(SEAL)] 8
274	274	Signature Date 9
275	275	ACKNOWLEDGMENT (insert acknowledgment here) 10
276	276	(BACK OF FORM) 11
277	277	COMMON QUESTIONS ABOUT THE USE OF THIS FORM Q. How do I use this form 12
278	278	to revoke a Transfer on Death (TOD) deed? A. Complete this form. Have it acknowledged before 13
279	279	a notary public or other individual authorized to take acknowledgments. Record the form in the 14
280	280	public records in the office of the city or town recorder where the property is located. The form 15
281	281	must be acknowledged and recorded before your death or it has no effect. Q. How do I find the 16
282	282	"legal description" of the property? A. This information may be on the TOD deed. It may also be 17
283	283	available in the office of the city or town recorder where the property is located. If you are not 18
284	284	absolutely sure, consult a lawyer. Q. How do I "record" the form? A. Take the completed and 19
285	285	acknowledged form to the office of the city or town recorder where the property is located. Follow 20
286	286	the instructions given by the city or town recorder to make the form part of the official property 21
287	287	records. If the property is located in more than one city or town, you should record the form in each 22
288	288	of those cities and towns. Q. I am being pressured to complete this form. What should I do? A. Do 23
289	289	not complete this form under pressure. Seek help from a trusted family member, a friend, or a 24
290	290	lawyer. Q. Can this form be used for a partial revocation of a previously filed TOD deed? A. No. 25
291	291	This form is to be used for full revocation of a deed. In the case of a partial revocation, a new TOD 26
292	292	deed must be filed. Q. I have other questions about this form. What should I do? A. This form is 27
293	293	designed to fit some but not all situations. If you have other questions, consult a lawyer. 28
294	294	33-4.1-18. Uniformity of application and construction. 29
295	295	In applying and construing this uniform act, consideration must be given to the need to 30
296	296	promote uniformity of the law with respect to its subject matter among the states that enact it. 31
297	297	33-4.1-19. Relation to electronic signatures in global and national commerce act. 32
298	298	This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global 33
299	299	and National Commerce Act, 15 U.S.C. § 7001, et seq., but does not modify, limit, or supersede § 34
300	300
301	301
302	302	LC000522 - Page 9 of 10
303	303	101(c) of that act, 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices 1
304	304	described in § 103(b) of that act, 15 U.S.C. § 7003(b). 2
305	305	SECTION 2. This act shall take effect upon passage. 3
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307	307	LC000522
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310	310
311	311	LC000522 - Page 10 of 10
312	312	EXPLANATION
313	313	BY THE LEGISLATIVE COUNCIL
314	314	OF
315	315	A N A C T
316	316	RELATING TO PROBATE PRACTICE AND PROCEDU RE -- UNIFORM REAL PROPERTY
317	317	TRANSFER ON DEATH AC T
318	318	***
319	319	This act would allow an owner or owners of real property to execute a deed that names one 1
320	320	or more beneficiaries who will obtain title to the property at the owner's death without the necessity 2
321	321	of probate. 3
322	322	This act would take effect upon passage. 4
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