This bill amends Section 31-3.1-37 of the General Laws regarding the transfer of motor vehicle titles upon the death of the owner. It establishes that, starting September 1, 2026, a motor vehicle that is not subject to a perfected security interest may be titled in a transfer-on-death form. This allows owners to designate one or more beneficiaries directly on the title, facilitating the transfer of ownership upon the owner's death.

The bill outlines the process for titling a vehicle in transfer-on-death form, including the necessary language to be included on the title. It specifies that if no title is available or does not contain transfer-on-death language, the owner may execute a document transferring the vehicle to a beneficiary during their lifetime. In the absence of such a document, the surviving spouse or heirs may transfer the title by providing a copy of the owner's death certificate and an affidavit to the division of motor vehicles, which cannot deny the request unless there is evidence of fraud or collusion.

The bill also states that the transfer-on-death beneficiary will have no interest in the vehicle until the owner's death, and that the owner may revoke or change the beneficiary designation at any time without the beneficiary's consent. If no beneficiary survives the owner, the vehicle will belong to the owner's estate.

Additionally, the division of motor vehicles is tasked with prescribing any fees associated with the transfer of title and registration, which cannot exceed the annual registration fee for the vehicle. The bill clarifies that a certificate of title in transfer-on-death form is not considered a testamentary disposition and mandates the division of motor vehicles to provide amended title forms to implement these changes.

Statutes affected:
2329: 31-3.1-37
2329  SUB A: 31-3.1-37