MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Judiciary A

By: Representative Simmons

AN ACT TO CREATE THE MISSISSIPPI TRANSFER-ON-DEATH OF INTEREST IN REAL PROPERTY AND NONREGISTERED PERSONAL PROPERTY ACT; TO DEFINE CERTAIN TERMS; TO PROVIDE FOR THE CONVEYANCE OF PROPERTY; TO PROVIDE FOR THE EFFECT OF TRANSFER ON DEATH PROVISION IN A CONVEYANCE; TO PROVIDE FOR OWNERSHIP ON THE DEATH OF THE OWNER; TO PROVIDE FOR NONTESTAMENTARY TRANSFER ON DEATH; TO PROVIDE FOR TERMS, CONDITIONS AND FORM OF CONVEYANCE; TO PROVIDE EXAMPLES; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the "Mississippi Transfer-On-Death of Interest in Real Property and Nonregistered Personal Property Act."

SECTION 2. In this chapter, unless the context otherwise requires:

(a) "Person" means an individual, a corporation, an organization or other legal entity.

(b) "Property" includes real property or any interest therein and nonregistered personal property or any interest therein.

(c) "Nonregistered Personal Property" means any personal property that is not actually registered under the provisions of the Mississippi Uniform Transfer-On-Death Security Registration Act as set forth in Sections 91-21-1, et seq.

(d) "Conveyance" means deeds of all types and bills of sale, all with or without warranty.

(e) "Beneficiary" or "Substituted Beneficiary" means a person as defined in this act.

SECTION 3. An interest or estate in property that will vest in a beneficiary or beneficiaries only upon the death of the owner or owners may be created by conveyance to the owner (grantee) or owners (grantees) followed by the words "Transfer on Death" (or the abbreviation there of "TOD") followed by the name or names of the beneficiary or beneficiaries. The conveyance of an interest or estate in property to two (2) or more owners shall provide for survivorship between the owners as joint tenants or as tenants by the entirety.

SECTION 4. The designation of a TOD beneficiary in a conveyance has no effect on the ownership until the owner's death and the beneficiary has no ownership or right in the property until the death of the owner. The sole owner or all of the surviving owners may, without the consent of any beneficiary or beneficiaries, take any action with respect to the property that could be taken by the sole owner or all of the surviving owners if no beneficiary or beneficiaries had been named.

SECTION 5. On death of a sole owner or the last to die of all multiple owners, ownership of the property passes to the beneficiary or beneficiaries who survive all owners. No interest shall vest in a beneficiary unless the beneficiary survives all owners. Until division of the property after the death of all owners, multiple beneficiaries surviving the death of all owners hold their interests as tenants in common. If no beneficiary survives the death of all owners, the property belongs to the estate of the deceased sole owner or the estate of the last to die of all multiple owners.

SECTION 6. (1) A transfer to the beneficiary or beneficiaries upon the death of a sole owner or the last to die of all multiple owners is effective by reason of the provisions of the conveyance and the provision of this chapter and is not testamentary.

(2) This chapter does not limit the rights of creditors of the owner against beneficiaries and other transferees under other laws of this state, but no new rights are created in a creditor under the provisions of this chapter.

SECTION 7. Substitution for a beneficiary may be indicated by appending to the name of the primary beneficiary the letters "LDPS" standing for "lineal descendants per stirpes" or the letters "SUB BENE" standing for "substitute beneficiary." This designation "LDPS" substitutes a deceased beneficiary's descendants who survive the owner for a beneficiary who fails to so survive, the descendants to be identified and to share in accordance with laws of inheritance by descendants of an intestate. The designation "SUB BENE" followed by the name of a substitute beneficiary is effective to substitute the person so named to receive the property that the beneficiary would have received by surviving the primary beneficiary.

SECTION 8. Without establishing any limitations, the following are examples of some conveyance that may be utilized:

(a) Sole Owner-Sole Beneficiary: To John R. Brown TOD John R. Brown, Jr.

(b) Sole Owner-Primary and Substituted Beneficiary: To John R. Brown TOD John R. Brown, Jr., SUB BENE John R. Brown, III.

(c) Sole Owner-Primary and Substituted Beneficiary: To John R. Brown TOD John R. Brown, Jr., LDPS.

(d) Sole Owner-Primary Beneficiaries and Secondary Beneficiary: To John R. Brown TOD John R. Brown, Jr., and Betty B. Smith SUB BENE ABC Corporation.

(e) Sole Owner-Undivided Interest to Different Beneficiaries: To John R. Brown TOD John R. Brown, Jr., an undivided one-half (1/2) interest; and to Betty B. Smith TOD Sandra S. Jones, an undivided one-half (1/2) interest.

(f) Husband and Wife Owners-Sole Beneficiary: To John R. Brown and wife, Mary S.Brown, as an estate by the entirety with full right of survivorship as between them and not as tenants in common TOD John R. Brown, Jr.

(g) Husband and Wife Owners-Primary Beneficiary and Substituted Beneficiary: To John R. Brown and wife, Mary S. Brown, as an estate by the entirety with the full right of survivorship as between them and not as tenants in common TOD John R. Brown, Jr., SUB BENE John R. Brown, III.

(h) Husband and Wife Owners-Primary Beneficiary and Substituted Beneficiary: To John R. Brown and wife, Mary S.Brown, as an estate by the entirety with full right of survivorship as between them and not as tenants in common TOD John R. Brown, Jr., LDPS.

(i) Sole Mineral Owner-Sole Beneficiary: To John R. Brown TOD John R. Brown, Jr., an undivided one-fourth (1/4) of all oil, gas and other minerals.

SECTION 9. This act shall take effect and be in force from and after July 1, 1999.