House Bill 1430

(As Sent to Governor)

AN ACT TO AUTHORIZE A BENEFICIARY DESIGNATION THAT TRANSFERS A MOTOR VEHICLE AT THE OWNER'S DEATH; TO PROVIDE DEFINITIONS; TO PROVIDE FOR REQUIREMENT OF THE BENEFICIARY DESIGNATION; TO PROVIDE THE PROCEDURE FOR JOINT OWNERS; TO MAKE CERTAIN REQUIREMENTS OF THE DEPARTMENT OF REVENUE AND AUTHORIZE RULEMAKING AUTHORITY TO THE DEPARTMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. The following terms shall have the following meanings, unless the context clearly indicates otherwise:

(a) "Beneficiary designation" means the designation by an owner of a motor vehicle of a beneficiary of the vehicle as provided by Section 6 of this act.

(b) "Designated beneficiary" means a person designated as a beneficiary of an owner's interest in a motor vehicle under Section 6 of this act.

(c) "Joint owner with right of survivorship" or "joint owner" means a person who owns a motor vehicle concurrently with one or more other persons with a right of survivorship.

(d) "Motor vehicle" shall have the same meaning as the term as defined in Section 63-21-5(l).

SECTION 2. (1) An owner of a motor vehicle may transfer the owner's interest in the motor vehicle to a sole beneficiary effective on the owner's death by designating a beneficiary as provided by Section 6 of this act.

(2) A beneficiary designation is:

(a) Subject to Section 3 of this act, revocable and may be changed at any time without the consent of the designated beneficiary as provided by Section 6 of this act;

(b) A nontestamentary instrument; and

(A) Notice or delivery to or acceptance by the designated beneficiary during the owner's life; or

(B) Consideration.

(3) A will may not revoke or supersede a beneficiary designation, regardless of when the will is made.

(4) A designated beneficiary may disclaim the designated beneficiary's interest in the motor vehicle as provided by applicable law.

SECTION 3. (1) If a motor vehicle that is the subject of a beneficiary designation is owned by joint owners with right of survivorship, the beneficiary designation must be made by all of the joint owners.

(2) A beneficiary designation made by joint owners with right of survivorship:

(a) May be revoked or changed as provided by Section 6 of this act, only if it is revoked or changed by all of the joint owners; and

(b) May be revoked or changed by the last surviving joint owner as provided by Section 6 of this act.

SECTION 4. During a motor vehicle owner's life, a beneficiary designation does not:

(a) Affect an interest or right of the owner or owners making the designation, including the right to transfer or encumber the motor vehicle that is the subject of the designation;

(b) Create a legal or equitable interest in favor of the designated beneficiary in the motor vehicle that is the subject of the designation, even if the beneficiary has actual or constructive notice of the designation;

(c) Affect an interest or right of a secured or unsecured creditor or future creditor of the owner or owners making the designation, even if the creditor has actual or constructive notice of the designation; or

(d) Affect an owner's or the designated beneficiary's eligibility for any form of public assistance, subject to applicable federal law.

SECTION 5. (1) On the death of the owner of a motor vehicle that is the subject of a beneficiary designation, the following rules apply to an interest in the motor vehicle:

(a) If the designated beneficiary survives the owner making the designation by one hundred twenty (120) hours, the interest in the motor vehicle is transferred to the designated beneficiary; and

(b) If the designated beneficiary fails to survive the owner making the designation by one hundred twenty (120) hours, the share of the designated beneficiary lapses and is subject to and passes as if the beneficiary designation were a devise made in a will.

(2) If an owner is a joint owner with right of survivorship who is survived by one or more other joint owners, the motor vehicle that is the subject of the beneficiary designation belongs to the surviving joint owner or owners. If an owner is a joint owner with right of survivorship who is the last surviving joint owner, the beneficiary designation is effective.

(3) A designated beneficiary takes the motor vehicle subject to all encumbrances, assignments, contracts, liens and other interests to which the vehicle is subject at the owner's or last surviving owner's death, as applicable. The transfer to the designated beneficiary does not affect the ability of a lienholder to pursue an existing means of debt collection permitted under the laws of this state.

(4) The transfer to the designated beneficiary upon death is not a taxable event, regardless of the designated beneficiary's relationship to the deceased owner of the motor vehicle.

SECTION 6. (1) The owner of a motor vehicle may designate a sole beneficiary to whom the owner's interest in the vehicle transfers on the owner's death as provided by Sections 1 through 5 of this act, by submitting an application for title with the designation. To be effective, the designation must state that the transfer of an interest in the vehicle to the designated beneficiary is to occur at the transferor's death.

(2) The legal name of a beneficiary designated under this section must be included on the title.

(3) The department shall transfer title of a motor vehicle to a beneficiary designated under this section for the vehicle if the beneficiary submits:

(a) An application for title not later than the 180th day after the date of the owner's death or, if the vehicle is owned by joint owners, the last surviving owner's death, as applicable; and

(b) Satisfactory proof of the death of the owner or owners, as applicable.

(4) A beneficiary designation may be changed or revoked by submitting a new application for title.

(5) A beneficiary designation or a change or revocation of a beneficiary designation made on an application for title of a motor vehicle that has not been submitted to the department before the death of a vehicle's owner or owners who made, changed, or revoked the designation, as applicable, is invalid.

(6) The Department of Revenue may adopt rules to administer this section.

SECTION 7. This act shall take effect and be in force from and after July 1, 2022.