Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB0984 Compare Versions

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44 SENATE BILL 984
55 By Southerland
66
77
88 SB0984
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1111
1212 AN ACT to amend Tennessee Code Annotated, Title 8;
1313 Title 30; Title 31; Title 32; Title 35; Title 55; Title 66
1414 and Title 67, relative to property.
1515
1616 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
1717 SECTION 1. Tennessee Code Annotated, Title 31, is amended by adding the following
1818 as a new chapter 8:
1919 31-8-101. Short title.
2020 This chapter is known and may be cited as the "Uniform Real Property Transfer
2121 on Death Act."
2222 31-8-102. Chapter definitions.
2323 As used in this chapter:
2424 (1) "Beneficiary" means a person that receives property under a transfer
2525 on death deed;
2626 (2) "Designated beneficiary" means a person designated to receive
2727 property in a transfer on death deed;
2828 (3) "Joint owner":
2929 (A) Means an individual who owns property concurrently with one
3030 (1) or more other individuals with a right of survivorship;
3131 (B) Includes a joint tenant and tenant by the entirety; and
3232 (C) Does not include a tenant in common or joint tenant with no
3333 right of survivorship;
3434 (4) "Person" means an individual; corporation; business trust; estate;
3535 trust; partnership; limited liability company; association; joint venture; public
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4040 corporation; government or governmental subdivision, agency, or instrumentality;
4141 or any other legal or commercial entity;
4242 (5) "Property" means an interest in real property located in this state that
4343 is transferable on the death of the owner;
4444 (6) "Transfer on death deed" means a deed authorized under this
4545 chapter; and
4646 (7) "Transferor" means an individual who makes a transfer on death
4747 deed.
4848 31-8-103. Applicability.
4949 This chapter applies to a transfer on death deed made before, on, or after July 1,
5050 2025, by a transferor dying on or after July 1, 2025.
5151 31-8-104. Nonexclusivity.
5252 This chapter does not affect any method of transferring property otherwise
5353 permitted under the law of this state.
5454 31-8-105. Transfer on death deed authorized.
5555 An individual may transfer property to one (1) or more beneficiaries effective at
5656 the transferor's death by a transfer on death deed.
5757 31-8-106. Transfer on death deed revocable.
5858 A transfer on death deed is revocable even if the deed or another instrument
5959 contains a contrary provision.
6060 31-8-107. Transfer on death deed nontestamentary.
6161 A transfer on death deed is nontestamentary.
6262 31-8-108. Capacity of transferor.
6363 The capacity required to make or revoke a transfer on death deed is the same as
6464 the capacity required to make a will.
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6969 31-8-109. Requirements.
7070 A transfer on death deed:
7171 (1) Except as otherwise provided in subdivision (2), must contain the
7272 essential elements and formalities of a properly recordable inter vivos deed;
7373 (2) Must state that the transfer to the designated beneficiary is to occur at
7474 the transferor's death; and
7575 (3) Must be recorded before the transferor's death in the public records in
7676 the office of the county register of deeds of the county where the property is
7777 located.
7878 31-8-110. Notice, delivery, acceptance, consideration not required.
7979 A transfer on death deed is effective without:
8080 (1) Notice or delivery to, or acceptance by, the designated beneficiary
8181 during the transferor's life; or
8282 (2) Consideration.
8383 31-8-111. Revocation by instrument authorized – Revocation by act not permitted.
8484 (a) Subject to subsection (b), an instrument is effective to revoke a recorded
8585 transfer on death deed, or any part of it, only if the instrument:
8686 (1) Is one (1) of the following:
8787 (A) A transfer on death deed that revokes the deed or part of the
8888 deed expressly or by inconsistency;
8989 (B) An instrument of revocation that expressly revokes the deed
9090 or part of the deed; or
9191 (C) An inter vivos deed that expressly revokes the transfer on
9292 death deed or part of the deed; and
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9696
9797 (2) Is acknowledged by the transferor after the acknowledgment of the
9898 deed being revoked and recorded before the transferor's death in the public
9999 records in the office of the county register of deeds of the county where the deed
100100 is recorded.
101101 (b) If a transfer on death deed is made by more than one (1) transferor:
102102 (1) Revocation by a transferor does not affect the deed as to the interest
103103 of another transferor; and
104104 (2) A deed of joint owners is revoked only if it is revoked by all of the
105105 living joint owners.
106106 (c) After a transfer on death deed is recorded, it may not be revoked by a
107107 revocatory act on the deed.
108108 (d) This section does not limit the effect of an inter vivos transfer of the property.
109109 31-8-112. Effect of transfer on death deed during transferor's life.
110110 During a transferor’s life, a transfer on death deed does not:
111111 (1) Affect an interest or right of the transferor or any other owner,
112112 including the right to transfer or encumber the property;
113113 (2) Affect an interest or right of a transferee, even if the transferee has
114114 actual or constructive notice of the deed;
115115 (3) Affect an interest or right of a secured or unsecured creditor or future
116116 creditor of the transferor, even if the creditor has actual or constructive notice of
117117 the deed;
118118 (4) Affect the transferor's or designated beneficiary's eligibility for any
119119 form of public assistance unless required by federal law;
120120 (5) Create a legal or equitable interest in favor of the designated
121121 beneficiary; or
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126126 (6) Subject the property to claims or process of a creditor of the
127127 designated beneficiary.
128128 31-8-113. Effect of transfer on death deed at transferor's death.
129129 (a) Except as otherwise provided in the transfer on death deed, this section; §
130130 32-3-104; § 31-1-102; § 31-1-106; or chapter 3 or 4 of this title, upon the death of the
131131 transferor, the following rules apply to property that is the subject of a transfer on death
132132 deed and owned by the transferor at death:
133133 (1) Subject to subdivision (a)(2), the interest in the property is transferred
134134 to and vests in the designated beneficiary in accordance with the deed;
135135 (2) The interest of a designated beneficiary is contingent on the
136136 designated beneficiary surviving the transferor. The interest of a designated
137137 beneficiary that fails to survive the transferor lapses;
138138 (3) Subject to subdivision (a)(4), concurrent interests are transferred to
139139 the beneficiaries in equal and undivided shares with no right of survivorship; and
140140 (4) If the transferor has identified two (2) or more designated
141141 beneficiaries to receive concurrent interests in the property, the share of one (1)
142142 that lapses or fails for any reason is transferred to the other, or to the others in
143143 proportion to the interest of each in the remaining part of the property held
144144 concurrently.
145145 (b) Subject to §§ 66-5-106; 66-26-101; and title 66, chapter 24, a beneficiary
146146 takes the property subject to all conveyances, encumbrances, assignments, contracts,
147147 mortgages, liens, claims of the bureau of TennCare or successor entity for medical
148148 assistance, and other interests to which the property is subject at the transferor's death.
149149 For purposes of this title and title 66, the recording of the transfer on death deed is
150150 deemed to have occurred at the transferor's death.
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155155 (c) If a transferor is a joint owner and is:
156156 (1) Survived by one (1) or more other joint owners, then the property that
157157 is the subject of a transfer on death deed belongs to the surviving joint owner or
158158 owners with right of survivorship; or
159159 (2) The last surviving joint owner, then the transfer on death deed is
160160 effective.
161161 (d) A transfer on death deed transfers property without covenant or warranty of
162162 title even if the deed contains a contrary provision.
163163 31-8-114. Disclaimer.
164164 A beneficiary may disclaim all or part of the beneficiary's interest as provided in
165165 the Tennessee Disclaimer of Property Interests Act, compiled in chapter 7 of this title.
166166 31-8-115. Delivery or filing.
167167 (a) As used in this section, "beneficiary designation" means an instrument, other
168168 than an instrument creating a trust, naming the beneficiary of:
169169 (1) An annuity or insurance policy;
170170 (2) An account with a designation for payment on death;
171171 (3) A security registered in beneficiary form;
172172 (4) A pension, profit-sharing, retirement, or other employment-related
173173 benefit plan; or
174174 (5) Any other nonprobate transfer at death.
175175 (b) Subject to subsections (c)-(l), delivery of a disclaimer may be effected by
176176 personal delivery, first-class mail, or any other method likely to result in its receipt.
177177 (c) In the case of an interest created under the law of intestate succession or an
178178 interest created by will, other than an interest in a testamentary trust:
179179
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182182
183183 (1) A disclaimer must be delivered to the personal representative of the
184184 decedent's estate; or
185185 (2) If no personal representative is then serving, it must be filed with a
186186 court having jurisdiction to appoint the personal representative.
187187 (d) In the case of an interest in a testamentary trust:
188188 (1) A disclaimer must be delivered to the trustee then serving, or if no
189189 trustee is then serving, to the personal representative of the decedent's estate; or
190190 (2) If no personal representative is then serving, it must be filed with a
191191 court having jurisdiction to enforce the trust.
192192 (e) In the case of an interest in an inter vivos trust:
193193 (1) A disclaimer must be delivered to the trustee then serving;
194194 (2) If no trustee is then serving, it must be filed with a court having
195195 jurisdiction to enforce the trust; or
196196 (3) If the disclaimer is made before the time the instrument creating the
197197 trust becomes irrevocable, it must be delivered to the settlor of a revocable trust
198198 or the transferor of the interest.
199199 (f) In the case of an interest created by a beneficiary designation that is
200200 disclaimed before the designation becomes irrevocable, the disclaimer must be
201201 delivered to the person making the beneficiary designation.
202202 (g) In the case of an interest created by a beneficiary designation that is
203203 disclaimed after the designation becomes irrevocable:
204204 (1) The disclaimer of an interest in personal property must be delivered
205205 to the person obligated to distribute the interest; and
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210210 (2) The disclaimer of an interest in real property must be recorded in the
211211 office of the county register of deeds of the county where the real property that is
212212 the subject of the disclaimer is located.
213213 (h) In the case of a disclaimer by a surviving holder of jointly held property, the
214214 disclaimer must be delivered to the person to whom the disclaimed interest passes.
215215 (i) In the case of a disclaimer by an object or taker in default of exercise of a
216216 power of appointment at any time after the power was created:
217217 (1) The disclaimer must be delivered to the holder of the power or to the
218218 fiduciary acting under the instrument that created the power; or
219219 (2) If no fiduciary is then serving, it must be filed with a court having
220220 authority to appoint the fiduciary.
221221 (j) In the case of a disclaimer by an appointee of a nonfiduciary power of
222222 appointment:
223223 (1) The disclaimer must be delivered to the holder, the personal
224224 representative of the holder's estate, or the fiduciary under the instrument that
225225 created the power; or
226226 (2) If no fiduciary is then serving, it must be filed with a court having
227227 authority to appoint the fiduciary.
228228 (k) In the case of a disclaimer by a fiduciary of a power over a trust or estate, the
229229 disclaimer must be delivered as provided in subsection (c), (d), or (e), as if the power
230230 disclaimed were an interest in property.
231231 (l) In the case of a disclaimer of a power by an agent, the disclaimer must be
232232 delivered to the principal or the principal's representative.
233233 31-8-116. Recording of disclaimer.
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238238 If an instrument transferring an interest in or power over property subject to a
239239 disclaimer is required or permitted by law to be filed, recorded, or registered, then the
240240 disclaimer may be so filed, recorded, or registered. Except as otherwise provided in §
241241 31-8-115(g)(2), failure to file, record, or register the disclaimer does not affect its validity
242242 as between the disclaimant and persons to whom the property interest or power passes
243243 by reason of the disclaimer.
244244 31-8-117. Liability for creditor claims and statutory allowances.
245245 (a) To the extent the transferor's probate estate is insufficient to satisfy an
246246 allowed claim against the estate or a statutory allowance to a surviving spouse or child,
247247 the estate or any creditor may enforce the liability against property transferred at the
248248 transferor's death by a transfer on death deed.
249249 (b) If more than one (1) property is transferred by one (1) or more transfer on
250250 death deeds, then the liability under subsection (a) is apportioned among the properties
251251 in proportion to their net values at the transferor's death.
252252 (c) A proceeding to enforce the liability under this section must be commenced
253253 not later than eighteen (18) months after the transferor's death.
254254 31-8-118. Form of transfer on death deed.
255255 The following form may be used to create a transfer on death deed; provided,
256256 however, the other sections of this chapter govern the effect of this or any other
257257 instrument used to create a transfer on death deed:
258258 (front of form)
259259 REVOCABLE TRANSFER ON DEATH DEED
260260 NOTICE TO OWNER
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264264
265265 This deed will transfer ownership of the property described below when you die.
266266 You should carefully read all of the information on this form. You should consult a
267267 lawyer before using this form.
268268 This form must be recorded with the register of deeds before your death, or it will
269269 not be effective. Any change to this deed must also be recorded to be effective.
270270
271271 IDENTIFYING INFORMATION
272272 Owner or Owners Making This Deed:
273273 ___________________________ ______________________________
274274 Printed name Mailing address
275275 ___________________________
276276 Marital status
277277 ___________________________ ______________________________
278278 Printed name Mailing address
279279 ___________________________
280280 Marital status
281281 Legal description of the property:
282282 ____________________________________________________________
283283
284284 PRIMARY BENEFICIARY
285285 I designate the following beneficiary if the beneficiary survives me.
286286 ___________________________ _______________________________
287287 Printed name Mailing address, if available
288288
289289 ALTERNATE BENEFICIARY – Optional
290290 If my primary beneficiary does not survive me, I designate the following alternate
291291 beneficiary if that beneficiary survives me.
292292 ___________________________ _______________________________
293293
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296296
297297 Printed name Mailing address, if available
298298
299299 TRANSFER ON DEATH
300300 At my death, I transfer my interest in the described property to the beneficiaries
301301 as designated above.
302302 Before my death, I have the right to revoke this deed.
303303
304304 SIGNATURE OF OWNER OR OWNERS MAKING THIS DEED
305305 _______________________________ __________________________
306306 Signature Date
307307
308308 _______________________________ __________________________
309309 Signature Date
310310
311311 State of Tennessee
312312 County of _______________
313313
314314 Personally appeared before me, ___________, a notary public in and for the state and
315315 county aforesaid, ______________________, the within named person(s), with whom I
316316 am personally acquainted or proved to me on the basis of satisfactory evidence, and
317317 who acknowledged that such person was the one who executed the foregoing
318318 instrument for the purposes therein contained.
319319 WITNESS my hand and seal at office, on this _____ day of _________________, 20__
320320 __________________________________
321321 Notary Public
322322 My Commission Expires:
323323 ___________________________
324324
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327327
328328
329329 (back of form)
330330 COMMON QUESTIONS ABOUT THE USE OF THIS FORM
331331 What does the Transfer on Death (TOD) deed do? When you die, this deed
332332 transfers the described property, subject to any liens or mortgages (or other
333333 encumbrances) on the property at your death. Probate is not required. The TOD deed
334334 has no effect until you die. You can revoke it at any time. You are also free to transfer
335335 the property to someone else during your lifetime. If you do not own any interest in the
336336 property when you die, this deed will have no effect.
337337 How do I make a TOD deed? Complete this form. Have it acknowledged before
338338 a notary public or other individual authorized by law to take acknowledgments. Record
339339 the form in each county where any part of the property is located. The form has no
340340 effect unless it is acknowledged and recorded before your death.
341341 Is the "legal description" of the property necessary? Yes.
342342 How do I find the "legal description" of the property? This information may be on
343343 the deed you received when you became an owner of the property. This information
344344 may also be available in the office of the register of deeds for the county where the
345345 property is located. If you are not absolutely sure, consult a lawyer.
346346 Can I change my mind before I record the TOD deed? Yes. If you have not yet
347347 recorded the deed and want to change your mind, simply tear up or otherwise destroy
348348 the deed.
349349 How do I "record" the TOD deed? Take the completed and acknowledged form
350350 to the office of the register of deeds of the county where the property is located. Follow
351351 the instructions given by the register of deeds to make the form part of the official
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355355
356356 property records. If the property is in more than one county, you need to record the
357357 deed in each county.
358358 Can I later revoke the TOD deed if I change my mind? Yes. You can revoke the
359359 TOD deed. No one, including the beneficiaries, can prevent you from revoking the deed.
360360 How do I revoke the TOD deed after it is recorded? There are three ways to
361361 revoke a recorded TOD deed: (1) Complete and acknowledge a revocation form, and
362362 record it in each county where the property is located; (2) Complete and acknowledge a
363363 new TOD deed that disposes of the same property, and record it in each county where
364364 the property is located; or (3) Transfer the property to someone else during your lifetime
365365 by a recorded deed that expressly revokes the TOD deed. You may not revoke the TOD
366366 deed by will.
367367 I am being pressured to complete this form. What should I do? Do not complete
368368 this form under pressure. Seek help from a trusted family member, friend, or lawyer.
369369 Do I need to tell the beneficiaries about the TOD deed? No, but it is
370370 recommended. Secrecy can cause later complications and might make it easier for
371371 others to commit fraud.
372372 I have other questions about this form. What should I do? This form is designed
373373 to fit some but not all situations. If you have other questions, you are encouraged to
374374 consult a lawyer.
375375 31-8-119. Optional form of revocation.
376376 The following form may be used to create an instrument of revocation under this
377377 chapter; provided, however, the other sections of this chapter govern the effect of this or
378378 any other instrument used to revoke a transfer on death deed:
379379 (front of form)
380380 REVOCATION OF TRANSFER ON DEATH DEED
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384384
385385 NOTICE TO OWNER
386386 This revocation must be recorded with the register of deeds before your death, or
387387 it will not be effective. This revocation is effective only as to the interests in the property
388388 of owners who sign this revocation.
389389
390390 IDENTIFYING INFORMATION
391391 Owner or Owners of Property Making This Revocation:
392392 ___________________________ ______________________________
393393 Printed name Mailing address
394394 __________________________
395395 Marital status
396396 ___________________________ ______________________________
397397 Printed name Mailing address
398398 __________________________
399399 Marital status
400400 Legal description of the property:
401401 ____________________________________________________________
402402
403403 REVOCATION
404404 I revoke all my previous transfers of the property by transfer on death deed.
405405
406406 SIGNATURE OF OWNER OR OWNERS MAKING THIS REVOCATION
407407 _______________________________ ________________________
408408 Signature Date
409409
410410 _______________________________ ________________________
411411 Signature Date
412412
413413
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416416
417417 State of Tennessee
418418 County of _______________
419419
420420 Personally appeared before me, ___________, a notary public in and for the state and
421421 county aforesaid, ______________________, the within named person(s), with whom I
422422 am personally acquainted or proved to me on the basis of satisfactory evidence, and
423423 who acknowledged that such person was the one who executed the foregoing
424424 instrument for the purposes therein contained.
425425 WITNESS my hand and seal at office, on this ______ day of ________________, 20__.
426426 ___________________________________
427427 Notary Public
428428 My Commission Expires:
429429 ___________________________
430430
431431 (back of form)
432432 COMMON QUESTIONS ABOUT THE USE O F THIS FORM
433433 How do I use this form to revoke a Transfer on Death (TOD) deed? Complete this form.
434434 Have it acknowledged before a notary public or other individual authorized to take
435435 acknowledgments. Record the form in the public records in the office of the register of deeds of
436436 each county where the property is located. The form must be acknowledged and recorded
437437 before your death or it has no effect.
438438 How do I find the "legal description" of the property? This information may be on the
439439 TOD deed. It may also be available in the office of the register of deeds for the county where
440440 the property is located. If you are not absolutely sure, consult a lawyer.
441441 How do I "record" the form? Take the completed and acknowledged form to the office of
442442 the register of deeds of the county where the property is located. Follow the instructions given
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446446
447447 by the register of deeds to make the form part of the official property records. If the property is
448448 located in more than one county, you need to record the form in each of those counties.
449449 I am being pressured to complete this form. What should I do? Do not complete this
450450 form under pressure. Seek help from a trusted family member, friend, or lawyer.
451451 I have other questions about this form. What should I do? This form is designed to fit
452452 some but not all situations. If you have other questions, consult a lawyer.
453453 31-8-120. Uniformity of application and construction.
454454 In applying and construing this uniform act, consideration must be given to the
455455 need to promote uniformity of the law with respect to its subject matter among the states
456456 that enact it.
457457 31-8-121. Relation to electronic signatures in global and national commerce act.
458458 This chapter modifies, limits, and supersedes the federal Electronic Signatures in
459459 Global and National Commerce Act (15 U.S.C. § 7001, et seq.), but does not modify,
460460 limit, or supersede § 101(c) of that act (15 U.S.C. § 7001(c)), or authorize electronic
461461 delivery of any of the notices described in § 103(b) of that act (15 U.S.C. § 7003(b)).
462462 SECTION 2. Tennessee Code Annotated, Section 31-7-112(a), is amended by adding
463463 the following as a new subdivision (5) and redesignating existing subdivision (5) accordingly:
464464 (5) A transfer on death deed; or
465465 SECTION 3. Tennessee Code Annotated, Section 55-3-118, is amended by adding the
466466 following as a new subsection:
467467 (e)
468468 (1) An owner may provide for the transfer of title to a motor vehicle upon
469469 the owner's death by including in the certificate of title a designation of a
470470 beneficiary to whom the motor vehicle must be transferred upon the death of the
471471 owner, subject to the rights of all lienholders. A trust may be a designated
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475475
476476 beneficiary. If a motor vehicle is jointly owned by two (2) or more persons, then
477477 ownership of the motor vehicle must not vest in the designated beneficiary until
478478 the death of the last owner, subject to the rights of all lienholders.
479479 (2) When a motor vehicle is jointly owned by two (2) or more persons, the
480480 signatures of all owners must be required to designate a beneficiary. Only one
481481 (1) party's signature is required to designate a beneficiary if the title is registered
482482 in the name of one (1) spouse or where the conjunction between the names on
483483 the title is "or."
484484 (3) A transfer on death certificate of title must include after the name of
485485 the owner, or owners, the words "transfer on death to" or the abbreviation "TOD"
486486 followed by the name of the beneficiary.
487487 (4) A beneficiary designation may be changed at any time without the
488488 consent of a beneficiary with the filing of an application for a subsequent transfer
489489 on death certificate of title and payment of the fee provided in § 55-6-101(a)(4).
490490 Upon issuance of any subsequent certificate of title pursuant to this subsection
491491 (e), the previous certificate that was issued is void.
492492 SECTION 4. Tennessee Code Annotated, Section 55-6-101(a)(4), is amended by
493493 deleting "destroyed certificate," and substituting "destroyed certificate or a subsequent transfer
494494 on death certificate of title pursuant to § 55-3-118(e),".
495495 SECTION 5. Tennessee Code Annotated, Section 66-24-101(a)(12), is amended by
496496 adding ", including transfer on death deeds" immediately after "description".
497497 SECTION 6. The headings in this act are for reference purposes only and do not
498498 constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
499499 requested to include the headings in any compilation or publication containing this act.
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503503
504504 SECTION 7. For purposes of preparing forms or promulgating rules, this act takes effect
505505 upon becoming a law, the public welfare requiring it. For all other purposes, this act takes effect
506506 July 1, 2025, the public welfare requiring it, and applies to transfer on death deeds or certificates
507507 of title with a designated beneficiary made before, on, or after July 1, 2025, and by a transferor
508508 or motor vehicle owner dying on or after July 1, 2025.