Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Senator JAMES W. HOLZAPFEL
District 10 (Ocean)
Co-Sponsored by:
Senator Corrado
SYNOPSIS
Authorizes transfer on death (TOD) of title to motor vehicle.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning motor vehicle ownership and supplementing Title 39 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A motor vehicle may be titled in transfer on death (“TOD”) form by including in the certificate of title a designation of a beneficiary or beneficiaries to whom the motor vehicle shall be transferred on the death of the owner, or the last to die of two or more owners with right of survivorship. The transfer shall be subject to the rights of all lien holders, whether created before, simultaneously with, or after the creation of the TOD interest. A trust may be the beneficiary of a TOD title.
b. A motor vehicle is titled in TOD form by designating in the certificate of title the name of the sole owner, or the names of the owners who own the motor vehicle as tenants in common, tenants by the entirety or joint tenants with right of survivorship, followed in substance by the words "transfer on death to (name of beneficiary or beneficiaries)." The abbreviation "TOD" may be used instead of the words "transfer on death to."
c. The transfer on death beneficiary or beneficiaries shall have no interest in the motor vehicle until the death of the owner or the last to die of all multiple owners with right of survivorship. A beneficiary designation may be changed at any time by the owner or all then surviving multiple owners with right of survivorship, without the consent of the beneficiary or beneficiaries, by filing an application for a subsequent certificate of title.
d. Ownership of a motor vehicle titled in TOD form for which an application for a subsequent certificate of title has not been filed shall vest in the designated beneficiary or beneficiaries on the death of the owner or the last to die of all multiple owners with right of survivorship, subject to the rights of all lien holders. If no beneficiary survives the death of the owner or the last to die of all multiple owners with right of survivorship, then such interest in the motor vehicle belongs to the estate of the deceased owner or the last to die of all multiple owners with right of survivorship.
e. A certificate of title in TOD form shall not be considered a testamentary disposition.
2. The New Jersey Motor Vehicle Commission shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations to effectuate the provisions of this act.
3. This act shall take
effect on the first day of the fourth month following enactment.
STATEMENT
This bill would authorize titles to motor vehicles in the form of “transfer on death” (“TOD”). Transfer pursuant to a TOD would be independent of any probate of the decedent’s estate.
Under the bill, a motor vehicle could be titled in TOD form by including in the certificate of title a designation of a beneficiary or beneficiaries to whom the motor vehicle would be transferred on the death of the owner, or the last to die of two or more owners with right of survivorship. The transfer would be subject to the rights of all lien holders, whether created before, simultaneously with, or after the creation of the TOD interest. A trust could be the beneficiary of a TOD title.
A motor vehicle would be titled in transfer on death form by designating in the certificate of title the name of the sole owner, or the names of the owners who own the motor vehicle as tenants in common, tenants by the entirety or joint tenants with right of survivorship, followed in substance by the words "transfer on death to (name of beneficiary or beneficiaries)." Instead of the words "transfer on death to" the abbreviation "TOD" could be used.
The TOD beneficiary or beneficiaries would have no interest in the motor vehicle until the death of the owner or the last to die of all multiple owners with right of survivorship. A beneficiary designation could be changed at any time by the owner or all then surviving multiple owners with right of survivorship without the consent of the beneficiary or beneficiaries by filing an application for a subsequent certificate of title.
Under the bill, ownership of a motor vehicle titled in TOD form for which an application for a subsequent certificate of title has not been filed would vest in the designated beneficiary or beneficiaries on the death of the owner or the last to die of all multiple owners with right of survivorship, subject to the rights of all lien holders. If no beneficiary survives the death of the owner or the last to die of all multiple owners with right of survivorship, then such interest in the motor vehicle would belong to the estate of the deceased owner or the last to die of all multiple owners with right of survivorship.
This bill is modeled on a Delaware statute, 21 Del. C. sec. 2304.