Maryland HB 954: Vessels - Certificate of Title - Transfer-on-Death Beneficiary Designation

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0954*

HOUSE BILL 954
M1 2lr1833
HB 55/20 – ENT
By: Delegate Clark
Introduced and read first time: February 10, 2022
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Vessels – Certificate of Title – Transfer–on–Death Beneficiary Designation 2

FOR the purpose of requiring that a certificate of title issued for a vessel by the Department 3
of Natural Resources contain a notation indicating a transfer–on–death beneficiary 4
under certain circumstances; authorizing a sole owner of a vessel to designate a 5
beneficiary to take ownership of the vessel on the death of the owner; authorizing 6
the owner of a vessel to cancel or change the designation of a beneficiary without the 7
consent of the beneficiary; providing for the disposition of a vessel if a designated 8
beneficiary does not survive the owner of a vessel; and generally relating to the 9
designation of transfer–on–death beneficiaries on certificates of title for vessels. 10

BY repealing and reenacting, without amendments, 11
Article – Natural Resources 12
Section 8–715(a) 13
Annotated Code of Maryland 14
(2012 Replacement Volume and 2021 Supplement) 15

BY repealing and reenacting, with amendments, 16
Article – Natural Resources 17
Section 8–715(b) and (e) and 8–720(a) 18
Annotated Code of Maryland 19
(2012 Replacement Volume and 2021 Supplement) 20

BY adding to 21
Article – Natural Resources 22
Section 8–715.1 23
Annotated Code of Maryland 24
(2012 Replacement Volume and 2021 Supplement) 25

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27

2 HOUSE BILL 954

Article – Natural Resources 1

8–715. 2

(a) Except as provided in subsection (d) of this section, any owner of a vessel 3
principally used on the waters of the State and to be numbered shall apply to the 4
Department for a certificate of title for the vessel. 5

(b) (1) Each certificate of title shall contain the information and shall be issued 6
in a form the Department prescribes. 7

(2) IF APPLICABLE, A CERTIFICATE OF TITLE SHALL CONTAIN A 8
NOTATION INDICATING THE DESIGNATION OF A TRANSFER–ON–DEATH 9
BENEFICIARY UNDER § 8–715.1 OF THIS SUBTITLE. 10

(e) Every owner of a vessel subject to titling under the provisions of this subtitle 11
shall apply to the Department for issuance of a certificate of title for the vessel within 30 12
days after acquisition. The application shall be on forms the Department prescribes, and 13
accompanied by the required fee and tax. The application shall be signed and sworn to 14
before a notary public or other person who administers oaths, or a certification signed in 15
writing containing substantially the representation that statements made are true and 16
correct to the best of the applicant’s knowledge, information, and belief, under penalty of 17
perjury. The application shall contain the date of sale and gross price of the vessel or the 18
fair market value if no sale immediately preceded the transfer, and any additional 19
information the Department requires. If the application is made for a vessel last previously 20
registered or titled in another state or foreign country, the application shall contain this 21
information and any other the Department requires. IF THE SOLE INDIVIDUAL OWNER 22
OF A VESSEL DESIGNATES A TRANSFER–ON–DEATH BENEFICIARY UNDER § 8–715.1 23
OF THIS SUBTITLE, THE APPLICATION SHALL CONTAIN THE NAME AND MAILING 24
ADDRESS OF THE BENEFICIARY. 25

8–715.1. 26

(A) AN INDIVIDUAL WHO IS THE SOLE OWNER OF A VESSEL MAY APPLY TO 27
THE DEPARTMENT TO DESIGNATE A BENEFICIARY TO TAKE OWNERSHIP OF THE 28
VESSEL ON THE DEATH OF THE OWNER. 29

(B) THE DESIGNATION OF A BENEFICIARY MAY BE SHOWN BY THE WORDS 30
“TRANSFER–ON–DEATH” OR THE ABBREVIATION “TOD” AFTER THE NAME OF THE 31
REGISTERED OWNER ON A CERTIFICATE OF TITLE. 32

(C) (1) THE DESIGNATION OF A BENEFICIARY FOR A VESSEL DOES NOT 33
AFFECT THE OWNERSHIP OF THE VESSEL UNTIL THE DEATH OF THE OWNER OF THE 34
VESSEL. 35

HOUSE BILL 954 3

(2) THE OWNER OF A VESSEL MAY CANCEL OR CHANGE THE 1
DESIGNATION OF A BENEFICIARY AT ANY TIME WITHOUT THE CONSENT OF THE 2
BENEFICIARY BY APPLYING TO THE DEPARTMENT. 3

(D) THE DESIGNATION OF A BENEFICIARY IS NOT REQUIRED TO BE 4
SUPPORTED BY CONSIDERATION, AND THE CERTIFICATE OF TITLE OF THE VESSEL 5
FOR WHICH THE DESIGNATION IS MADE IS NOT REQUIRED TO BE DELIVERED TO THE 6
BENEFICIARY FOR THE DESIGNATION TO BE EFFECTIVE. 7

(E) ON THE DEATH OF THE OWNER OF A VESSEL WHO HAS DESIGNATED A 8
BENEFICIARY, OWNERSHIP OF THE VESSEL SHALL PASS TO THE BENEFICIARY IF THE 9
BENEFICIARY SURVIVES THE OWNER. 10

(F) (1) A DESIGNATED BENEFICIARY WHO SURVIVES THE OWNER SHALL 11
APPLY TO THE DEPARTMENT FOR A NEW CERTIFICATE OF TITLE FOR THE VESSEL 12
WITHIN 30 DAYS AFTER THE DEATH OF THE OWNER. 13

(2) AN APPLICATION FOR A CERTIFICATE OF TITLE BY A BENEFICIARY 14