Delaware General Assembly

House Administration 4/15/25

Committee Hearing takes place within twelve legislative days.

4/15/25

Harris

Sen. Lockman

Reps. K. Johnson, Lambert, Osienski, Ross Levin, Heffernan
Sen. Sokola, Seigfried

AN ACT TO AMEND TITLE 12, TITLE 18, TITLE 25, AND TITLE 30 OF THE DELAWARE CODE RELATING TO THE UNIFORM REAL PROPERTY TRANSFER ON DEATH ACT.

Delaware currently permits the nonprobate transfer of bank accounts, investments, and vehicles. This Act provides a mechanism for the nonprobate transfer of real estate without creating a revocable trust. This is done by permitting an owner of an interest in real estate to execute and record a transfer on death (TOD) deed designating a beneficiary who will automatically receive the real estate on the owner's death without a probate procedure. During the owner's lifetime the beneficiary of a TOD deed has no interest in the real estate and the owner retains full power to transfer or encumber the real estate or to revoke the deed. This Act adopts the Uniform Real Property Transfer on Death Act authored by the Uniform Law Commission. The Uniform Law Commission “provides states with non-partisan, well-conceived and well-drafted legislation that brings clarity and stability to critical areas of state statutory law.” The Uniform Real Property Transfer on Death Act has been enacted in 19 states (including Virginia), the District of Columbia, and the U.S. Virgin Islands, and a substantially similar law has been enacted in 10 states. The Uniform Real Property Transfer on Death Act is pending before 6 state legislatures (including New Jersey and Maryland). In adopting the Uniform Real Property Transfer on Death Act, this Act also makes the following changes to the uniform law and Delaware law: (1) Provides clarity that a transfer of death deed takes precedence over any contrary instruction in a will to transfer the same property. (2) Provides in the optional forms included in this Act, which may be used to create a transfer on death deed or revoke a transfer on death deed, that a transferor is a grantor and a beneficiary is a grantee. This change is made to assist the Recorders of Deeds in integrating the forms in their computerized databases. (3) Authorizes the Registers of Wills to adopt a form to be used by a beneficiary to provide notice of the death of a person whose property has transferred to the beneficiary by transfer on death deed. (4) Authorizes a beneficiary to file with the Register of Wills the death certificate of a person whose property has transferred to the beneficiary by transfer on death deed. (5) Makes abundantly clear that which is already permitted under the law of this State, that a person may obtain from the Office of Vital Statistics a death certificate to establish their legal right to property and may disclose that death certificate to the Register of Wills to prove the person’s legal right to property. (6) Under Section 3 of this Act, clarifies that an individual who executed a transfer on death deed does not die seized of the property and, therefore, the property is not required to be included on an inventory and appraisal to the Register of Wills. (7) Under Section 4 of this Act, clarifies that the Register of Wills is to furnish the Board of Assessment information related to the property, and the beneficiary of the property, that is transferred by a transfer on death deed. (8) A number of states have adopted laws to ensure that property subject to a transfer on death deed remains covered by insurance for a period of time after the death of the insured, to enable the beneficiary of the transfer on death deed time to obtain insurance. Section 5 of this Act ensures that when Delaware adopts the Uniform Real Property Transfer on Death Act, beneficiaries of a transfer on death deed have insurance coverage for a period of time up to 60 days following the death of the original owner of the property. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

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Takes effect upon being signed into law

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