Transfer-on-Death Designation of Beneficiary for Motor Vehicles; Transfer on Ownership

(a)The owner or joint owners of a motor vehicle may apply to the Department of Revenue and Taxation (Department) to issue a certificate of title in beneficiary form for the motor vehicle which includes a directive to the Department to transfer the certificate of title for the vehicle upon the death of the owner or upon the death of all joint owners to a beneficiary named on the face of the certificate of title. CH. 7 VEHICLE LICENSE AND REGISTRATION

(b)A request made pursuant to subsection

(a)above must be submitted on an application made available by the Department and accompanied by the fee required for issuance of a certificate of title.

(c)If the requirements of this Section are met, on the death of the sole or all joint owners of a vehicle owned in beneficiary form, the vehicle belongs to the surviving beneficiary, if any. If there is no surviving beneficiary, the vehicle belongs to the estate of the deceased owner or of the last co-owner to die.

(d)A certificate of title in beneficiary form may not be issued to a person who holds an interest in a motor vehicle as a tenant in common with another person.

(e)A certificate of title in beneficiary form must include, after the name of the owner or after the names of joint owners, the words “transfer on death to” or the abbreviation “TOD” followed by the name of the beneficiary.

(f)During the lifetime of a sole owner or before the death of the last surviving joint owner, the signature or consent of the beneficiary is not required for any transaction relating to a motor vehicle for which a certificate of title in beneficiary form has been issued; and the certificate of title in beneficiary form may be revoked or the beneficiary changed at any time by:

(1)Sale of the motor vehicle with proper assignment and delivery of the certificate of title to another person, or

(2)Filing an application with, and paying a fee to, the Department to reissue the certificate of title with no designation of a beneficiary or with the designation of a different beneficiary.

(g)The interest of the beneficiary in a motor vehicle on the death of the sole owner or the death of the last surviving joint owner is subject to any contract of sale, assignment, or ownership or security interest to which the owner or owners of the motor vehicle were subject during their lifetime.

(h)Except as otherwise provided in (f), the designation of a beneficiary in a certificate of title in beneficiary form may not be changed or revoked by will, any other instrument or a change in circumstances, or otherwise changed or revoked.

(i)The surviving beneficiary may secure a transfer of ownership for the vehicle upon presenting to the Department all of the following:

(1)The appropriate certificate of ownership.

(2)A certificate under penalty of perjury stating the date and place of the owner’s death and that the declarant is entitled to the vehicle as the designated beneficiary.

(3)If required by the Department, a certificate of the death of the owner.

(j)For the purposes of complying with the provisions of this Section, the Department may rely on a death certificate, record, or report that constitutes prima facie evidence of death of an owner of a motor vehicle.

(k)The transfer on death of a motor vehicle pursuant to this Section is not testamentary and is not subject to the provisions of Guam’s probate laws.

(l)In the instance a vehicle is owned by multiple owners, a transfer on death designation shall become effective only when each owner has signed a single transfer on death designation to the same beneficiary(ies), and each owner has died without revoking the designation or naming a new beneficiary.

(m)Definitions:

(1)“Motor Vehicle” means a motor vehicle as defined in § 1102 of Chapter 1, Title 16, Guam Code Annotated. CH. 7 VEHICLE LICENSE AND REGISTRATION

(2)“Beneficiary” means a person or persons designated to become the owner or owners of a motor vehicle on the death of the preceding owner or owners.

(3)“Certificate of title in beneficiary form” means a certificate of title of a motor vehicle that indicates the present owner or owners of the motor vehicle and designates a beneficiary.

(n)Public Information Disclosure Requirement. Within ninety

(90)days following the enactment of this Section, the Department of Revenue and Taxation shall develop, publish, and make available to the public, informational materials summarizing the provisions of this Section and the process for obtaining and recording a certificate of title in beneficiary form. These materials shall include, at minimum:

(1)A plain-language summary of the rights and responsibilities of vehicle owners, beneficiaries, and lienholders;

(2)Instructions for submitting and recording a transfer-on-death beneficiary designation; and

(3)Notice that any existing lien or security interest remains enforceable against the vehicle. The Department shall post such information on its official website, make printed copies available at its Motor Vehicle Division

(MVD)locations, and distribute the materials to any applicant requesting a certificate of title or transfer under this Section.