Bill > SB2029

This bill enacts the "Tennessee Uniform Real Property Transfer on Death Act," which allows individuals to designate beneficiaries to receive their real property upon their death through a "transfer on death deed," a legal document that functions similarly to a will but is not subject to probate, meaning the property bypasses the court-supervised process of distributing an estate. This new law defines key terms like "beneficiary" (the person receiving the property), "designated beneficiary" (the person named in the deed), and "transferor" (the person making the deed), and establishes that such deeds are revocable, nontestamentary (meaning they don't follow the rules of wills), and require the same legal capacity to create as a will. To be valid, a transfer on death deed must have the basic elements of a standard property deed, clearly state the transfer occurs upon the owner's death, and be recorded in the county register of deeds office before the owner's death; it does not require the beneficiary's knowledge or acceptance during the owner's lifetime and is effective without consideration. The law also outlines how these deeds can be revoked, either by creating a new transfer on death deed, a specific revocation instrument, or by transferring the property during the owner's lifetime, and clarifies that during the owner's life, the deed does not affect their rights to the property or create any interest for the beneficiary, nor does it subject the property to the beneficiary's creditors. Upon the owner's death, the property transfers to the designated beneficiary, provided they survive the owner, and the beneficiary receives the property subject to any existing liens or encumbrances, with provisions for situations where beneficiaries predecease the owner or where the property is jointly owned. Furthermore, the bill extends similar provisions to motor vehicles, allowing owners to designate beneficiaries on their vehicle titles, and also makes conforming amendments to other sections of Tennessee law related to property transfers and taxation.

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https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB2029&ga=114