AB 288

Bill Subjects

Abstract

Existing law, until January 1, 2032, governs the execution, revocation, and effectiveness of a revocable transfer on death (TOD) deed, which is an instrument that makes a donative transfer of real property to a named beneficiary that becomes operative on the transferor's death, but remains revocable until the transferor's death. Under existing law, a separate interest in a stock cooperative is not real property that may be transferred by a revocable TOD deed. This bill would authorize the transfer of real property by revocable TOD deed even if ownership is not typically evidenced or transferred by use of a deed, and would authorize the transfer of an interest in a stock cooperative by revocable TOD deed subject to any limitation on the transferor's interest. If a stock cooperative exercises an option to purchase property transferred by revocable TOD deed on the transferor's death, the bill would specify that the property is transferred to the stock cooperative and the purchase price is paid to the beneficiary. The bill would also make conforming changes. Existing law, until January 1, 2032, specifies that if a revocable TOD deed and another instrument purporting to dispose of the same property conflict, the revocable TOD deed is the operative instrument if the other instrument is not recorded within 120 days after an affidavit recorded for the property. If the other instrument is revocable and recorded within those 120 days, existing law specifies that the later executed instrument is operative, but if the other instrument is irrevocable and recorded within those 120 days, the other instrument is operative. This bill would delete the above-described recording requirements, and would instead specify that, if the other instrument is revocable, the later executed instrument is operative, and that the other instrument is operative if it is irrevocable.