Download Zipped Introduced WordPerfect SB0276.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 276
1
2
3
4
5
6
7
8 LONG TITLE
9 General Description:
10 This bill provides for the transfer of real property to a designated beneficiary upon the
11 death of the grantor.
12 Highlighted Provisions:
13 This bill:
14 . provides for a property owner's granting of a deed transferring an interest in real
15 property upon the property owner's death;
16 . addresses the effect of a deed transferring an interest in real property upon the
17 grantor's death, both during the grantor's life and upon death; and
18 . makes technical changes.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 57-1-5.1, as last amended by Chapter 38, Laws of Utah 2006
26 ENACTS:
27 57-1-46, Utah Code Annotated 1953
28 57-1-47, Utah Code Annotated 1953
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 57-1-5.1 is amended to read:
32 57-1-5.1. Termination of an interest in real estate -- Affidavit.
33 (1) Joint tenancy, tenancy by the entirety, life estate, [
34 interest, or a grantor's ownership interest expressed in a transfer-on-death deed in real estate
35 may be terminated by an affidavit that meets the requirements of Subsection (2) which shall be
36 recorded in the office of the recorder of the county in which the affected property is located.
37 (2) Each affidavit required by Subsection (1) shall:
38 (a) cite the interest which is being terminated;
39 (b) contain a legal description of the real property that is affected;
40 (c) reference the entry number and the book and page of the instrument creating the
41 interest to be terminated; and
42 (d) if the termination is the result of a death, have attached as an exhibit, a copy of the
43 death certificate or other document witnessing the death.
44 Section 2. Section 57-1-46 is enacted to read:
45 57-1-46. Transfer-on-death deed.
46 (1) (a) An interest in real property may be titled in a transfer-on-death deed signed by
47 the record owner of the interest, designating a grantee beneficiary or beneficiaries of the
48 interest.
49 (b) A deed under Subsection (1)(a) transfers ownership of the interest upon the death of
50 the owner.
51 (c) A transfer-on-death deed under this section need not be supported by consideration.
52 (2) The signature, consent, or agreement of or notice to a grantee beneficiary of a
53 transfer-on-death deed is not required for any purpose during the lifetime of the record owner.
54 (3) (a) A designation of the grantee beneficiary in a transfer-on-death deed may be
55 revoked at any time before the death of the record owner by executing and acknowledging an
56 instrument describing the interest and revoking the designation.
57 (b) The signature, consent, or agreement of or notice to the grantee beneficiary or
58 beneficiaries is not required to revoke a designation of the grantee beneficiary.
59 (4) (a) A designation of the grantee beneficiary may be changed at any time before the
60 death of the record owner by executing and acknowledging a subsequent transfer-on-death
61 deed.
62 (b) The signature, consent, or agreement of or notice to the grantee beneficiary or
63 beneficiaries is not required to execute and acknowledge a subsequent transfer-on-death deed.
64 (c) A subsequent transfer-on-death beneficiary designation revokes a prior designation
65 to the extent there is a conflict between the two designations.
66 (5) A transfer-on-death deed executed and acknowledged may not be revoked by the
67 provisions of a will or a trust.
68 (6) (a) A joint tenancy in real property is not affected by a transfer-on-death deed, and
69 the rights of a surviving joint tenant prevail over a grantee beneficiary named in a
70 transfer-on-death deed.
71 (b) If a joint tenant executes a transfer-on-death deed and that joint tenant is the last
72 surviving joint tenant, the transfer-on-death deed is effective upon that joint tenant's death.
73 (c) If each joint tenant has executed a transfer-on-death deed, only the last surviving
74 joint tenant's transfer-on-death deed is effective upon that joint tenant's death.
75 (7) Title to the interest in real property in a transfer-on-death deed vests in the
76 designated grantee beneficiary or beneficiaries upon the death of the record owner.
77 (8) A grantee beneficiary of a transfer-on-death deed takes the record owner's interest
78 in the real property at death, subject to all conveyances, assignments, contracts, mortgages,
79 liens, and security pledges made by the record owner or to which the record owner was subject
80 during the record owner's lifetime, including any:
81 (a) executory contract of sale;
82 (b) option to purchase;
83 (c) lease;
84 (d) license;
85 (e) easement;
86 (f) mortgage;
87 (g) deed of trust;
88 (h) lien;
89 (i) claim of the state; and
90 (j) interest conveyed by the record owner that is less than all of the record owner's
91 interest in the property.
92 (9) If the assets of the estate of the record owner are insufficient to meet its obligations,
93 a transfer resulting from a transfer-on-death deed is not effective against the estate of a
94 deceased person to the extent needed to pay:
95 (a) any claims against the estate; and
96 (b) the statutory allowances to a surviving spouse and children.
97 (10) If a grantee beneficiary dies before the death of the record owner and an
98 alternative grantee beneficiary is not designated on a transfer-on-death deed, the transfer lapses.
99 Section 3. Section 57-1-47 is enacted to read:
100 57-1-47. Form of transfer-on-death deed.
101 An interest in real property is titled in a transfer-on-death deed by executing and
102 acknowledging a deed in substantially the following form:
103
104 ______________________(insert name of owner), as owner transfers on death to
105 _____________________ (insert name of beneficiary or beneficiaries), as grantee beneficiary,
106 the following described interest in real property. THIS TRANSFER-ON-DEATH DEED IS
107 REVOCABLE. IT DOES NOT TRANSFER ANY OWNERSHIP INTEREST UNTIL THE
108 DEATH OF THE OWNER. IT REVOKES ALL PRIOR BENEFICIARY DESIGNATIONS
109 BY THIS OWNER FOR THIS INTEREST IN REAL PROPERTY.
110 (description of real property).
111 Witness the hand of said owner this_____________________(month/day/year).
112 (Seal)
113 (acknowledgment)
Legislative Review Note
as of 2-9-07 2:25 PM