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AB12
BENEFICIARY DEEDS
On December 6, 2004, Assemblyman Chuck Devore, R-Irvine, Assembly
District 70, filed his first bill, AB12 Beneficiary Deeds. On January 6, 2005, AB12 was
referred to the Assembly Committee on Judiciary.
Shortly thereafter those supporting AB12 learned that The State Bar
of California Trust & Estates Section Executive Committee opposed
AB12. Two meetings were held
in Sacramento to discuss AB12 in order to
amend the language to satisfy the Trust and Probate lawyers. After implementing many
amendments, the AB12 supporters were told (1) that anyone who owned a home
could afford to pay a lawyer for a Trust and (2) that this piece of
legislation would never pass the legislature, and be signed by the
Governor, without the approval of the state bar, and (3) that the Section
would never approve of Transfer-on-Death Beneficiary Deed legislation,
because the only way to transfer real estate at death is by a trust or by
probate. Negotiations were
over.
At that point, Mary Pat Toups suggested that AB12 be amended to
remove everything written to date, and to substitute the exact language of
the Transfer-on-Death statute in use in New Mexico. Numerous New Mexico lawyers
had reported that the statute works well, and that they like the language
as written. This change was
made.
In analyzing the numerous criticisms of the opposition, Toups
determined that they all fell into two categories: (1) Homeowners would
never understand a Revocable Transfer-on-Death Beneficiary Deed, and (2)
California lawyers would never be able to
understand and implement such a Deed in California.
On May 3 the Judiciary Committee held a hearing. Toups indicated that Homeowners
would be educated to understand this new Deed by 3
sources:
(1) AARP, would
probably publish on this subject in the future, since AARP has published
on this subject in the past, (2) by NOLO PRESS, which has published the
best seller “8 Ways to Avoid Probate” since 1996, and (3) by a web site
that she herself would create.
Toups indicated that lawyers in seven other states understand and
implement their states’ Revocable Transfer-on-Death-Beneficiary Deeds, and
that California lawyers can learn to
implement this new Deed in California.
The Assembly members suggested that perhaps it would be wise to
refer AB12 to the California Law Revision Commission to study, and make
recommendations to the Assembly by January 1, 2007. This amendment was made, and AB12
passed in the Judiciary Committee by a vote of 9 to 0 on May 3, 2005.
The Assembly then read the bill two times, and referred it to the
Appropriations Committee, who found “absorbable costs for the California
Law Revision Commission”. On
May 25 the Appropriations Committee approved by a vote of 18 to 0.
On May 27, 2005, AB12 was read in the Assembly for the third
time, passed with a vote of 74 to 0, and transferred to the
Senate.
On May 27, 2005, AB12 was read in the Senate for the first
time, and referred to the Committee on Rules for assignment.
On
June 9, 2005, AB12 was referred to the Senate
Judiciary Committee, ammended, and passed on June 30 with a vote of 5
to 0.
On July 1, 2005, the Senate read AB12 for a second time,
amended, and re-referred AB12 to the Committee on Appropriations. On
August 16, AB12 was received by the Senate and placed on the second
reading file pusuant to Senate Rule 28.8. On August 17, it was read
for the second time. On August 22, AB12 was read for a third time,
and passed with a vote of 40 to 0.
On August 22, 2005, AB12 was returned to the Assembly, since
concurrence in the Senate ammendments was
necessary.
On August 29, 2005, the Assembly concurred with the Senate amendments,
approving with a vote of 77 to 0.
At this point in time, ALL
votes by both the Assembly and the Senate have been
unanimous.
On September 1, 2005, AB12
was enrolled and sent to the Governor at
4:30pm.
On September 30, 2005, AB12 was
approved by the Governor, and Chaptered by the Secretary of State -
Chapter 422, Statutes of 2005.
Then it was referred to the California Law Revision Commission for
study and a report back to the Assembly. Letters from Citizens to the
Commission will be absolutely necessary for a favorable report. Opponents
to AB 12 will be actively working to derail AB 12 and all efforts to
create this new type of deed.
Both our Senior Citizens and our Baby Boomer Beneficiaries will
benefit from a Revocable Transfer-on-Death Beneficiary Deed. Letters from
Citizens are just as effective as letters from lawyers. Please write.
To follow the progress of AB12, go to www.leginfo.ca.gov
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