This bill amends South Dakota's laws regarding the transfer of ownership for motor vehicles, off-road vehicles, snowmobiles, and boats upon the death of the owner. It introduces a new section allowing owners to designate a beneficiary on the certificate of title, which will facilitate the transfer of the property upon the owner's death or the death of the last survivor in a joint tenancy with the right of survivorship. The bill stipulates that all owners must provide written approval for the designation of a beneficiary, and it allows trusts to be named as beneficiaries. Additionally, it clarifies that a designated beneficiary has no interest in the property until the death of the owner or last survivor, and owners can change the beneficiary designation without consent.

The bill also establishes that property subject to any lien or encumbrance cannot have a beneficiary designation, and the Department of Motor Vehicles is prohibited from issuing a certificate of title for such properties. Upon the death of the owner or last survivor, the designated beneficiary can submit an affidavit to the department to verify the death and initiate the transfer of ownership. If the property is free of liens, ownership will vest in the designated beneficiary upon the death of the owner or last survivor, provided that no subsequent application for a certificate of title has been filed.