STATE OF OKLAHOMA

1st Session of the 52nd Legislature (2009)

SENATE BILL 837	By:	Branan

AS INTRODUCED

An Act relating to probate procedure; amending Section 5, Chapter 78, O.S.L. 2008 (58 O.S. Supp. 2008, Section 1255), which relates to the Nontestamentary Transfer of Property Act; establishing liability for certain claims; providing for enforceability of certain claims; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     Section 5, Chapter 78, O.S.L. 2008 (58 O.S. Supp. 2008, Section 1255), is amended to read as follows:
Section 1255.  A.  Title to the interest in real estate recorded in transfer-on-death form shall vest in the designated grantee beneficiary or beneficiaries on the death of the record owner.  The death of the record owner shall be evidenced by the recording of an affidavit in the office of the county clerk of the county where the real estate is located.  The affidavit shall be executed by the grantee beneficiary or beneficiaries.  The affidavit shall state the fact of the death of the record owner, state whether or not the record owner and the designated grantee were husband and wife, and provide the legal description of the real estate.  The affidavit shall be notarized.  If the record owner and designated grantee were not husband and wife, a copy of the death certificate of the record owner and an estate tax release shall be attached to the affidavit.
B.  Grantee beneficiaries of a transfer-on-death deed take the interest of the record owner in the real estate at death subject to all conveyances, assignments, contracts, mortgages, liens and security pledges made by the record owner or to which the record owner was subject during the lifetime of the record owner including, but not limited to, any executory contract of sale, option to purchase, lease, license, easement, mortgage, deed of trust or lien, and to any interest conveyed by the record owner that is less than all of the record owner's interest in the property.
C.  If a grantee beneficiary dies prior to the death of the record owner and an alternative grantee beneficiary has not been designated on the deed, the transfer shall lapse.
D.  Grantee beneficiaries of a transfer-on-death deed are liable for allowed claims against the record owner’s probate estate to the extent the record owner’s probate estate is inadequate to satisfy those claims, unless such claims are otherwise paid or provided for.  The grantee beneficiaries’ liability under this paragraph may not exceed the value of the real estate interest received by the grantee beneficiaries under the transfer-on-death deed.
E.  Upon notice to grantee beneficiaries, the liability imposed by paragraph D of this section is enforceable in proceedings in this state in the county where the property is located whether or not a grantee beneficiary is located in this state.  A proceeding to enforce such liability must be commenced within one year after the record owner’s death.  A proceeding on behalf of a claimant whose claim was allowed after proceedings challenging disallowance of the claim may be commenced within sixty (60) days after final allowance of the claim.
SECTION 2.  This act shall become effective November 1, 2009.

52-1-1459	TEK	1/14/2009 4:55:02 PM