Revocable transfer on death deeds.

(1) Existing law governs the execution, revocation, and effectiveness of a revocable transfer on death (TOD) deed, defined as an instrument that makes a donative transfer of property to a named beneficiary, as defined, that operates on the transferor's death, and remains revocable until the transferor's death. Existing law establishes statutory forms for executing and revoking a revocable TOD deed that include provisions and instructions for the forms to be notarized by the transferor and recorded with the county recorder. Existing law requires that subsequent pages of the form to execute a revocable TOD deed include statutory "common questions" regarding the use of that form. Existing law requires that, in order to be effective, a revocable TOD deed be recorded on or before 60 days after the date it was executed. Existing law makes these provisions inoperative on January 1, 2021. This bill would authorize a transferor to make a donative transfer under these provisions to a charitable organization or nonprofit entity as a beneficiary. The bill would additionally require a revocable TOD deed to be recorded during the transferor's life to be effective. The bill would remove from the statutory forms for executing and revoking a revocable TOD deed the references to an exemption for a documentary transfer tax and a preliminary change of ownership report and modify the provisions for notarization. The bill would provide that the statutory "common frequently asked questions" do not need to be recorded with the statutory form to create a revocable TOD deed and apply this provision to revocable TOD deeds executed under specified circumstances. (2) Existing law establishes proceedings for an action to enforce a liability that arises in connection to a request by a personal representative for the restoration of property to an estate. Existing law provides that an action under those provisions is barred 3 years after notice is provided under those provisions by affidavit or declaration, as specified. This bill would specify that this provision does not operate as a 3-year waiting period with respect to property that is transferred pursuant to a validly executed revocable TOD deed. (3) The bill would provide that all changes made to the Probate Code by this act would be applied retroactively. (4) Existing law requires the California Law Revision Commission to study the effect of the revocable TOD deed and report its findings and recommendations for whether to continue the existence of the deed to the Legislature on or before January 1, 2020. This bill would require the commission to additionally study whether the revocable TOD deed is effective for making transfers to charitable organizations or nonprofit entities as beneficiaries.