HB 989

            
2020 SESSION

20101436D

HOUSE BILL NO. 989


Offered January 8, 2020


Prefiled January 7, 2020

A BILL to amend and reenact � 46.2-633.2 of the Code of 
 Virginia, relating to designation of beneficiary on motor vehicle title; 
 multiple owners.
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Patron-- Batten

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Referred to Committee on Transportation

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Be it enacted by the General Assembly of Virginia:
 
 
1. That � 46.2-633.2 of the Code of Virginia is amended and 
 reenacted as follows:
 
 
� 46.2-633.2. Transfer of title on death.
 
 
A. A motor vehicle, trailer, or semitrailer may include in the 
 certificate of title a designation of a beneficiary to whom the motor vehicle, 
 trailer, or semitrailer shall be transferred after the death of the owner.
 
 
B. A motor vehicle, trailer, or semitrailer owned by one person may be 
 titled with a designated beneficiary by applying to the Department for a 
 certificate of title on which is stated the name of the sole owner followed by 
 "transfer on death" or "TOD" and the name of the 
 beneficiary.
 
 
C. A motor vehicle, 
 trailer, or semitrailer owned by more than one person may be titled with a 
 designated beneficiary by applying to the Department for a certificate of title 
 on which is stated the names of the owners followed by "transfer on 
 death" or "TOD" and the name of the beneficiary. Such 
 application shall be signed by all owners of the motor vehicle, trailer, or semitrailer. 
 Such transfer to the designated beneficiary shall occur upon the death of the 
 last surviving owner. Nothing herein shall limit the rights of any surviving 
 owner as provided in this section.
 
 
D. A certificate of title with a designated beneficiary 
 shall not be issued if (i) the any owner is not a natural 
 person; or 
 (ii) the motor vehicle, trailer, or semitrailer is encumbered by a lien or 
 security interest; or (iii) the owner 
 holds an interest in the motor vehicle, trailer, or semitrailer with another 
 person.
 
 
D. E. During the lifetime of the 
 owner:
 
 
1. The beneficiary shall have no interest in the motor 
 vehicle, trailer, or semitrailer and the signature or consent of the 
 beneficiary shall not be required for any transaction; and
 
 
2. The certificate of title with the designated beneficiary 
 shall not be issued by the Department or shall be canceled if:
 
 
a. The owner files an application for a certificate of title 
 under subsection B or C 
 to remove or change the beneficiary;
 
 
b. The owner sells the motor vehicle, trailer, or semitrailer 
 and delivers the certificate of title to another person; or
 
 
c. An application for the recording of a lien or security 
 interest has been filed with the Department for the motor vehicle, trailer, or 
 semitrailer prior to the death of the owner or filed within the time limits in 
 � 46.2-639.
 
 
E. F. Except as provided in this 
 section, the designated beneficiary shall not be changed or revoked by will or 
 any other instrument, by a change in circumstances, or in any other manner.
 
 
F. G. A certificate of title with 
 a designated beneficiary shall not be required to be supported by consideration 
 and need not be delivered to the beneficiary to be effective.
 
 
G. H. Upon the death of the owner 
 and application by the beneficiary, the Department shall issue a new certificate 
 of title in accordance with � 46.2-600 for the motor vehicle, trailer, or 
 semitrailer to the beneficiary. The beneficiary must apply for a certificate of 
 title upon submitting proof of the death of the owner and such other documents 
 and information as the Department may reasonably require. If the beneficiary 
 does not survive the owner or does not apply for a certificate of title within 
 120 days of the death of the owner, the beneficiary or his estate shall have no 
 right to obtain title to the motor vehicle, trailer, or semitrailer under this 
 section. Upon transfer of title to the beneficiary, the Department shall cancel 
 the registration of the deceased owner.
 
 
H. I. Any transfer pursuant to 
 this section shall be subject to any lien or security interest authorized under 
 � 46.2-644, 46.2-644.01, or 46.2-644.02.
 
 
I. J. Any transfer pursuant to 
 this section is not testamentary and shall not be subject to the provisions of 
 Title 64.2.