HF 540

as introduced - 90th Legislature (2017 - 2018) Posted on 01/26/2017 02:12pm

A bill for an act
relating to motor vehicles; providing for transfer-on-death of title to motor vehicles;
exempting transfer from motor vehicle sales tax; amending Minnesota Statutes
2016, sections 256B.15, subdivision 1a; 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 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 natural person who is the owner of a
motor vehicle may have the motor vehicle titled in transfer-on-death or TOD form by
including in the application for the certificate of title a designation of a beneficiary or
beneficiaries 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 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.
If the owner of the motor vehicle is married at the time of the designation, the designation
of a beneficiary other than the owner's spouse requires the spouse's written consent.
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 have
no interest in the motor vehicle until the death of the owner or the last survivor of joint
owners with rights 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 vests in the designated beneficiary or beneficiaries on the death of
the owner or the last of the joint owners with rights of survivorship, subject to the rights of
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 a certified death
record 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 (a) 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

new text begin (b) The state or a county agency with a claim or lien authorized by section 246.53,
256B.15, 261.04, or 270C.63 is a creditor for purposes of this subdivision. A claim or lien
under those sections continues to apply against the designated beneficiary or beneficiaries
after the transfer under this section if other assets of the deceased owner's estate are
insufficient to pay the amount of the claim. The claim or lien continues to apply to the motor
vehicle until the designated beneficiary sells or transfers it to a person against whom the
claim or lien does not apply and who did not have actual notice or knowledge of the claim
or lien.
new text end

Sec. 2.

Minnesota Statutes 2016, section 256B.15, subdivision 1a, is amended to read:

Subd. 1a.

Estates subject to claims.

(a) If a person receives medical assistance hereunder,
on the person's death, if single, or on the death of the survivor of a married couple, either
or both of whom received medical assistance, or as otherwise provided for in this section,
the amount paid for medical assistance as limited under subdivision 2 for the person and
spouse shall be filed as a claim against the estate of the person or the estate of the surviving
spouse in the court having jurisdiction to probate the estate or to issue a decree of descent
according to sections 525.31 to 525.313.

(b) For the purposes of this section, the person's estate must consist of:

(1) the person's probate estate;

(2) all of the person's interests or proceeds of those interests in real property the person
owned as a life tenant or as a joint tenant with a right of survivorship at the time of the
person's death;

(3) all of the person's interests or proceeds of those interests in securities the person
owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time
of the person's death, to the extent the interests or proceeds of those interests become part
of the probate estate under section 524.6-307;

(4) all of the person's interests in joint accounts, multiple-party accounts, and pay-on-death
accounts, brokerage accounts, investment accounts, or the proceeds of those accounts, as
provided under sections 524.6-201 to 524.6-214 at the time of the person's death to the
extent the interests become part of the probate estate under section 524.6-207; and

(5) assets conveyed to a survivor, heir, or assign of the person through survivorship,
living trust, new text begin transfer-on-death of title or deed, new text end or other arrangements.

(c) For the purpose of this section and recovery in a surviving spouse's estate for medical
assistance paid for a predeceased spouse, the estate must consist of all of the legal title and
interests the deceased individual's predeceased spouse had in jointly owned or marital
property at the time of the spouse's death, as defined in subdivision 2b, and the proceeds of
those interests, that passed to the deceased individual or another individual, a survivor, an
heir, or an assign of the predeceased spouse through a joint tenancy, tenancy in common,
survivorship, life estate, living trust, or other arrangement. A deceased recipient who, at
death, owned the property jointly with the surviving spouse shall have an interest in the
entire property.

(d) For the purpose of recovery in a single person's estate or the estate of a survivor of
a married couple, "other arrangement" includes any other means by which title to all or any
part of the jointly owned or marital property or interest passed from the predeceased spouse
to another including, but not limited to, transfers between spouses which are permitted,
prohibited, or penalized for purposes of medical assistance.

(e) A claim shall be filed if medical assistance was rendered for either or both persons
under one of the following circumstances:

(1) the person was over 55 years of age, and received services under this chapter prior
to January 1, 2014;

(2) the person resided in a medical institution for six months or longer, received services
under this chapter, and, at the time of institutionalization or application for medical assistance,
whichever is later, the person could not have reasonably been expected to be discharged
and returned home, as certified in writing by the person's treating physician. For purposes
of this section only, a "medical institution" means a skilled nursing facility, intermediate
care facility, intermediate care facility for persons with developmental disabilities, nursing
facility, or inpatient hospital;

(3) the person received general assistance medical care services under the program
formerly codified under chapter 256D; or

(4) the person was 55 years of age or older and received medical assistance services on
or after January 1, 2014, that consisted of nursing facility services, home and
community-based services, or related hospital and prescription drug benefits.

(f) The claim shall be considered an expense of the last illness of the decedent for the
purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a state or
county agency with a claim under this section must be a creditor under section 524.6-307.
Any statute of limitations that purports to limit any county agency or the state agency, or
both, to recover for medical assistance granted hereunder shall not apply to any claim made
hereunder for reimbursement for any medical assistance granted hereunder. Notice of the
claim shall be given to all heirs and devisees of the decedent, and to other persons with an
ownership interest in the real property owned by the decedent at the time of the decedent's
death, whose identity can be ascertained with reasonable diligence. The notice must include
procedures and instructions for making an application for a hardship waiver under subdivision
5; time frames for submitting an application and determination; and information regarding
appeal rights and procedures. Counties are entitled to one-half of the nonfederal share of
medical assistance collections from estates that are directly attributable to county effort.
Counties are entitled to ten percent of the collections for alternative care directly attributable
to county effort.

Sec. 3.

Minnesota Statutes 2016, 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 of new 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.