House Bill 1295

AN ACT TO AMEND SECTION 91-27-29, MISSISSIPPI CODE OF 1972, TO EXEMPT AN INTEREST IN REAL PROPERTY CONVEYED BY A TRANSFER-ON-DEATH DEED FROM CLAIMS OF CREDITORS OF THE DECEASED TRANSFEROR OR CLAIMS OF CREDITORS OF THE ESTATE OF THE DECEASED TRANSFEROR, WHERE SUCH CLAIMS DID NOT ATTACH TO THE REAL PROPERTY PRIOR TO THE DEATH OF THE TRANSFEROR; TO PROVIDE THAT THE DESIGNATED BENEFICIARY OF THE TRANSFER-ON-DEATH DEED TAKES TITLE TO THE TRANSFERRED REAL PROPERTY FREE AND CLEAR OF THE CLAIMS OF CREDITORS OF THE ESTATE OF THE DECEASED TRANSFEROR; TO BRING FORWARD SECTION 91-27-27, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 91-27-29, Mississippi Code of 1972, is amended as follows:

91-27-29. Transfer-on-death deed property subject to liens and encumbrances at transferor's death; creditors' claims. Subject to Title 89, Chapter 5, Mississippi Code of 1972, relating to the recordation of instruments, a designated beneficiary takes the real property subject to all conveyances, encumbrances, assignments, contracts, mortgages, liens, and other interests to which the real property is subject at the transferor's death. For purposes of this section and Title 89, Chapter 5, Mississippi Code of 1972, the recording of the transfer-on-death deed is considered to have occurred at the transferor's death.

An interest in real property conveyed by a transfer-on-death deed is not subject to the claims of creditors of the deceased transferor, or claims of creditors of the estate of the deceased transferor, where such claims did not attach to the real property prior to the death of the transferor. The designated beneficiary of the transfer-on-death deed takes title to the transferred real property free and clear of the claims of creditors of the estate of the deceased transferor.

SECTION 2. Section 91-27-27, Mississippi Code of 1972, is brought forward as follows:

91-27-27. Effect of transfer-on-death deed at transferor's death. On the death of the transferor, the following rules apply to an interest in real property that is the subject of a transfer-on-death deed and owned by the transferor at death except as otherwise provided: in the transfer-on-death deed; in this chapter; in Title 91, Chapter 29, Mississippi Code of 1972, relating to revocation by divorce; in Section 91-1-25 relating to the prohibition on inheriting from a person whom one has killed; in Title 91, Chapter 3, Mississippi Code of 1972, the Mississippi Uniform Simultaneous Death Act; and in Section 91-5-25 relating to the spousal right to renounce a will:

(1) If a transferor is a joint owner with right of survivorship who is survived by one or more other joint owners, the real property that is the subject of the transfer-on-death deed belongs to the surviving joint owner or owners. If a transferor is a joint owner with right of survivorship who is the last-surviving joint owner, the transfer-on-death deed is effective.

(2) The last-surviving joint owner may revoke the transfer-on-death deed subject to Section 91-27-19.

(3) A transfer-on-death deed transfers real property without covenant or warranty of title even if the deed contains a contrary provision.

(4) The interest in the property is transferred to a designated beneficiary in accordance with the deed, but the interest of a designated beneficiary is contingent on the designated beneficiary surviving the transferor. The interest of a designated beneficiary that fails to survive the transferor lapses.

(5) Concurrent interests are transferred to the beneficiaries in equal and undivided shares with no right of survivorship, but if the transferor has identified two (2) or more designated beneficiaries to receive concurrent interests in the property, the share of one which lapses or fails for any reason is transferred to the other, or to the others in proportion to the interest of each in the remaining part of the property held concurrently.

SECTION 3. This act shall take effect and be in force from and after July 1, 2023.