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HF 1302

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/20/2014 04:22pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/06/2013
1st Engrossment Posted on 03/17/2014
2nd Engrossment Posted on 03/20/2014

Current Version - 2nd Engrossment

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A bill for an act
relating to motor vehicles; providing for transfer-on-death of title to motor vehicle;
amending Minnesota Statutes 2013 Supplement, section 297B.01, subdivision
16; proposing coding for new law in Minnesota Statutes, chapter 168A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [168A.125] TRANSFER-ON-DEATH OF TITLE TO MOTOR
VEHICLE.
new text end

new text begin Subdivision 1. new text end

new text begin Titled as transfer-on-death. new text end

new text begin A motor vehicle may be titled in
transfer-on-death or TOD form by a natural person by including in the certificate of title a
designation of a beneficiary or beneficiaries who are natural persons to whom the motor
vehicle must be transferred on death of the owner or the last survivor of joint owners with
rights of survivorship, subject to the rights of all secured parties.
new text end

new text begin Subd. 2. new text end

new text begin Designation of beneficiary. new text end

new text begin A motor vehicle is registered in
transfer-on-death form by designating on the certificate of title the name of the owner
and the names of joint owners with identification of rights of survivorship, followed by
the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation
"TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is
not required to be supported by consideration, and the certificate of title in which the
designation is made is not required to be delivered to the beneficiary or beneficiaries in
order for the designation to be effective.
new text end

new text begin Subd. 3. new text end

new text begin Interest of beneficiary. new text end

new text begin The transfer-on-death beneficiary or beneficiaries
shall have no interest in the motor vehicle until the death of the owner or the last survivor
of the joint owners with right of survivorship. A beneficiary designation may be changed at
any time by the owner or by all joint owners with rights of survivorship, without the consent
of the beneficiary or beneficiaries, by filing an application for a new certificate of title.
new text end

new text begin Subd. 4. new text end

new text begin Vesting of ownership in beneficiary. new text end

new text begin Ownership of a motor vehicle
titled in transfer-on-death form shall vest in the designated beneficiary or beneficiaries on
the death of the owner or the last of the joint owners with right of survivorship, subject
to the rights of all secured parties. The transfer-on-death beneficiary or beneficiaries
who survive the owner may apply for a new certificate of title to the motor vehicle upon
submitting proof of the death of the owner of the motor vehicle. If no transfer-on-death
beneficiary or beneficiaries survive the owner of a motor vehicle, the motor vehicle must
be included in the probate estate of the deceased owner. A transfer of a motor vehicle to a
transfer-on-death beneficiary or beneficiaries is not a testamentary transfer.
new text end

new text begin Subd. 5. new text end

new text begin Rights of creditors. new text end

new text begin This section does not limit the rights of any secured
party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary or
beneficiaries.
new text end

Sec. 2.

Minnesota Statutes 2013 Supplement, section 297B.01, subdivision 16, is
amended to read:


Subd. 16.

Sale, sells, selling, purchase, purchased, or acquired.

(a) "Sale,"
"sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any
motor vehicle, whether absolutely or conditionally, for a consideration in money or by
exchange or barter for any purpose other than resale in the regular course of business.

(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others
or by holding it in an effort to so lease it, and which is put to no other use by the owner
other than resale after such lease or effort to lease, shall be considered property purchased
for resale.

(c) The terms also shall include any transfer of title or ownership of a motor vehicle
by other means, for or without consideration, except that these terms shall not include:

(1) the acquisition of a motor vehicle by inheritance from or by bequest ofnew text begin , or
transfer-on-death of title by
new text end , a decedent who owned it;

(2) the transfer of a motor vehicle which was previously licensed in the names of
two or more joint tenants and subsequently transferred without monetary consideration to
one or more of the joint tenants;

(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
no monetary or other consideration or expectation of consideration and the parties to the
transfer submit an affidavit to that effect at the time the title transfer is recorded;

(4) the transfer of a motor vehicle by gift between:

(i) spouses;

(ii) parents and a child; or

(iii) grandparents and a grandchild;

(5) the voluntary or involuntary transfer of a motor vehicle between a husband and
wife in a divorce proceeding; or

(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt
from federal income taxation under section 501(c)(3) of the Internal Revenue Code when
the motor vehicle will be used exclusively for religious, charitable, or educational purposes.