AB250 Revocable Tranfer on Death (TOD) Deeds Transfer On Death Deeds-California Assembly Bill 12

AB250 Revocable Transfer on Death (TOD) Deeds was filed on February 1, 2006 by Assemblyman Chuck DeVore, as recommended by the California Law Revision Commission. Go to http://www.leginfo.ca.gov for detailed information.

The California Law Revision Commission wrote the following LETTER OF TRANSMITTAL on October 27, 2006:

In this recommendation the California Law Revision Commission analyzes the revocable transfer on death deed (revocable TOD deed), or beneficiary deed as it is known in some jurisdictions, for possible adoption in California. The revocable TOD deed transfers real property to a named beneficiary on the death of the owner without probate; it is revocable until that time.

The recommendation includes a comparison of existing real property donative transfer devices under California law. The recommendation includes a review of experience in the nine jurisdictions that have enacted revocable TOD deed legislation. The recommendation also addresses in depth the legal incidents of the revocable TOD deed.

The Law Revision Commission finds that the existing real property donative transfer devices do not serve the same function as the revocable TOD deed. Experience with the revocable TOD deed is generally favorable in other jurisdictions. After weighing the advantages and disadvantages of the revocable TOD deed, the Commission concludes that revocable TOD legislation would be beneficial in California.

The Commission appreciates the assistance of many individuals and organizations that provided input on this study. In particular, the Commission would like to thank Charlotte Ito of the State Bar Trusts & Estates Section, David Mandel of the Senior Legal Hotline, Craig Page of the California Land Title Association, and emeritus attorney Mary Pat Toups, all of whom provided comments and attended Commission meetings. The Commission’s conclusions do not necessarily reflect the views of the participants.

The Recommendation was prepared pursuant to Chapter 422 of the Statues of 2005.

On March 27, 2007, the Assembly Judiciary Committee Voted UNANIMOUSLY to approve AB250, as amended. (Ayes: 10. Noes: zero)

On May 31, 2007, the Assembly Appropriations Committee voted UNANIMOUSLY to approve AB250. (Ayes: 17. Noes: zero)

After AB250 was sent to the Senate, the bill was referred to the Senate Judiciary Committee, which scheduled the bill for a hearing on July 10, 2007.

On July 10, 2007, at 1:20pm, I entered the Room where the Senate Judiciary Committee was to meet at 1:30pm. Later pizzas were delivered to the Senators and their staff. AB250 was called at 7:20pm for our hearing. Assemblyman Chuck DeVore, and California Law Revision Commission Executive Secretary Brian Hebert and I spoke briefly, and then listened to the Senators comments, and answered questions.

Senator Dick Ackerman (R) Senate District 33, Fullerton-Anaheim-Laguna Niguel, who is my Senator, is a co-author of AB250, and remains loyal to AB250.

However, Senator Tom Harman (R) Senate District 35, Costa Mesa-Huntington Beach, said he is opposed to AB250, for many reasons. I was especially disappointed, because as a Volunteer Attorney of the Seniors Program of Legal Aid Society of Orange County, I serve the Senior Citizens of Laguna Beach, whom Harman represents. These Senior

Citizen homeowners have been telling me, since 1992, that they cannot afford a Trust and that they want their home to NOT be Probated. Then they ask me what I can do to help them. I have been telling them there is nothing I can do to help them, but that if they owned a home in nine other states, (that have a Revocable Transfer-on-Death Deed), they could avoid the expenses of a Trust, and Probate, and also that their Beneficiary, who would own their home upon their death, would NOT have to pay Capital Gains Taxes upon sale. Harman also represents the elderly of Leisure World in Seal Beach, which is served by my office. Not being able to help our Senior Citizen homeowner clients, finally

caused me to decide California needs a Revocable Transfer-on-Death Deed, and that I must work to get this Legislation passed.

The other three Senators on this Senate Judiciary Committee asked a lot of questions, and seemed doubtful that this new Deed was a good idea, probably due to the negative Senate Judiciary Staff report they had read.

Senator Ellen Corbett (D) Senate District 10, San Leandro-Pleasanton-Milpitas, is Chair of this Committee. Senator Sheila James Kuehl (D) Senate District 23, Santa Monica-Los Angeles-Oxnard, and Senator Darrell Steinberg (D) Senate District 6, Sacramento-Citrus

Heights-Elk Grove, also serve on this Committee.

Why these three Senators are doubtful that California would benefit from a Revocable Transfer-on-Death Deed, I do not know. I explained that now our Senior Citizen homeowners are buying Quit Claim Deeds and Joint Tenancy Deeds, at the stationery store, using them to try to avoid the expenses of a Trust and the expenses of Probate. And that using the Quit Claim Deeds and the Joint Tenancy Deeds are a tragedy for many reasons. Clients come to me after they have recorded these deeds, when disaster

strikes, but it is too late for me to help them. They no longer have Title to their homes in their name alone, as they would if they could use a Revocable Transfer-on-Death Deed.

When finally it appeared that AB250 did not have the votes to pass, my

Assemblyman Chuck DeVore suggested that he would ask that this hearing

be cancelled, so that we could work with the Senators and the Senate

Judiciary Staff to explain AB250 better, and then bring it back in

January of 2008. No one objected to this. We left the July 10, 2007

Hearing, disappointed, but determined to continue working for the

passage of AB250.

Ultimately AB250 will have to be approved again by the entire Legislature,

with numerous votes.

THE FOLLOWING INFORMATION IS EDUCATIONAL PURPOSES ONLY

To explain to the readers of this website better what AB250 would

provide I am including a DRAFT of what this new Deed WOULD look like IF

AB250 is passed in its current form, without further amendments.Click HERE for a list of questions about the use of the TOD Deed.

DO NOT USE THIS DEED UNTIL PASSED BY THE LEGISLATURE AND SIGNED BY THE GOVERNOR. At that time the State of California will make available the

MANDATORY FORM that will be approved later, when AB250 is passed, and it

will probably NOT be identical to this form. It is essential that the

homeowner use the correct form, which will be passed at a later date.

Revocable Transfer on Death (TOD) Deed

California Probate Code Section 5600

Please contact your Legislators, both Assembly and Senate, and ask them to vote in favor of AB250 Revocable Transfer on Death (TOD) Deed. A short, handwritten letter would be fine.

To determine your current Legislators' addresses, click Here and you will be taken to the California Government Website where you may enter your zip code to find your Legislators' addresses.

This TOD Deed allows the homeowner to avoid the expenses of a trust, and avoid the expenses of a probate, and allows the Baby Boomer heirs to avoid payment of any Capital Gains Tax upon sale of the home. This is a win-win-win Deed. Please tell your Legislators.


	AB250 Revocable Transfer on Death (TOD) Deeds was filed on February 1, 2006 by Assemblyman Chuck DeVore, as recommended by the California Law Revision Commission. Go to http://www.leginfo.ca.gov for detailed information. The California Law Revision Commission wrote the following LETTER OF TRANSMITTAL on October 27, 2006: To: The Honorable Arnold Schwarzenegger Governor of California, and The Legislature of California In this recommendation the California Law Revision Commission analyzes the revocable transfer on death deed (revocable TOD deed), or beneficiary deed as it is known in some jurisdictions, for possible adoption in California. The revocable TOD deed transfers real property to a named beneficiary on the death of the owner without probate; it is revocable until that time. The recommendation includes a comparison of existing real property donative transfer devices under California law. The recommendation includes a review of experience in the nine jurisdictions that have enacted revocable TOD deed legislation. The recommendation also addresses in depth the legal incidents of the revocable TOD deed. The Law Revision Commission finds that the existing real property donative transfer devices do not serve the same function as the revocable TOD deed. Experience with the revocable TOD deed is generally favorable in other jurisdictions. After weighing the advantages and disadvantages of the revocable TOD deed, the Commission concludes that revocable TOD legislation would be beneficial in California. The Commission appreciates the assistance of many individuals and organizations that provided input on this study. In particular, the Commission would like to thank Charlotte Ito of the State Bar Trusts & Estates Section, David Mandel of the Senior Legal Hotline, Craig Page of the California Land Title Association, and emeritus attorney Mary Pat Toups, all of whom provided comments and attended Commission meetings. The Commission’s conclusions do not necessarily reflect the views of the participants. The Recommendation was prepared pursuant to Chapter 422 of the Statues of 2005. UPDATE ON AB250 On March 27, 2007, the Assembly Judiciary Committee Voted UNANIMOUSLY to approve AB250, as amended. (Ayes: 10. Noes: zero) On May 31, 2007, the Assembly Appropriations Committee voted UNANIMOUSLY to approve AB250. (Ayes: 17. Noes: zero) On June 4, 2007, the entire Assembly voted UNANIMOUSLY to approve AB250. (Ayes: 79. Noes: zero) After AB250 was sent to the Senate, the bill was referred to the Senate Judiciary Committee, which scheduled the bill for a hearing on July 10, 2007. On July 9, 2007, I read the ten page report of the Staff of the Senate Judiciary Committee, which was totally negative. It appeared to me that the Senate Judiciary Staff had not read the 103 page RECOMENDATION of the California Law Revision Commission on the Revocable Transfer on Death (TOD) Deed, submitted to the Governor and the Legislature, in October 2006. This report was mandated by AB12 which was passed in 2005. The Commission had studied this subject, in detail, for over a year in 2005 and 2006, and also in 1989 when Missouri legislation created this Deed for the people of Missouri. This Senate Judiciary Staff certainly does not understand the needs of homeowners who want to avoid the expenses of a Trust, and the expenses of Probating the home, and the benefit to the Beneficiary who receives the home after death, and pays NO Capital Gains Taxes at sale. Previously all Legislative votes on AB15 and all Assembly votes on AB250 had been UNANIMOUS in favor of this new Deed. On July 10, 2007, at 1:20pm, I entered the Room where the Senate Judiciary Committee was to meet at 1:30pm. Later pizzas were delivered to the Senators and their staff. AB250 was called at 7:20pm for our hearing. Assemblyman Chuck DeVore, and California Law Revision Commission Executive Secretary Brian Hebert and I spoke briefly, and then listened to the Senators comments, and answered questions. Senator Dick Ackerman (R) Senate District 33, Fullerton-Anaheim-Laguna Niguel, who is my Senator, is a co-author of AB250, and remains loyal to AB250. However, Senator Tom Harman (R) Senate District 35, Costa Mesa-Huntington Beach, said he is opposed to AB250, for many reasons. I was especially disappointed, because as a Volunteer Attorney of the Seniors Program of Legal Aid Society of Orange County, I serve the Senior Citizens of Laguna Beach, whom Harman represents. These Senior Citizen homeowners have been telling me, since 1992, that they cannot afford a Trust and that they want their home to NOT be Probated. Then they ask me what I can do to help them. I have been telling them there is nothing I can do to help them, but that if they owned a home in nine other states, (that have a Revocable Transfer-on-Death Deed), they could avoid the expenses of a Trust, and Probate, and also that their Beneficiary, who would own their home upon their death, would NOT have to pay Capital Gains Taxes upon sale. Harman also represents the elderly of Leisure World in Seal Beach, which is served by my office. Not being able to help our Senior Citizen homeowner clients, finally caused me to decide California needs a Revocable Transfer-on-Death Deed, and that I must work to get this Legislation passed. The other three Senators on this Senate Judiciary Committee asked a lot of questions, and seemed doubtful that this new Deed was a good idea, probably due to the negative Senate Judiciary Staff report they had read. Senator Ellen Corbett (D) Senate District 10, San Leandro-Pleasanton-Milpitas, is Chair of this Committee. Senator Sheila James Kuehl (D) Senate District 23, Santa Monica-Los Angeles-Oxnard, and Senator Darrell Steinberg (D) Senate District 6, Sacramento-Citrus Heights-Elk Grove, also serve on this Committee. Why these three Senators are doubtful that California would benefit from a Revocable Transfer-on-Death Deed, I do not know. I explained that now our Senior Citizen homeowners are buying Quit Claim Deeds and Joint Tenancy Deeds, at the stationery store, using them to try to avoid the expenses of a Trust and the expenses of Probate. And that using the Quit Claim Deeds and the Joint Tenancy Deeds are a tragedy for many reasons. Clients come to me after they have recorded these deeds, when disaster strikes, but it is too late for me to help them. They no longer have Title to their homes in their name alone, as they would if they could use a Revocable Transfer-on-Death Deed. When finally it appeared that AB250 did not have the votes to pass, my Assemblyman Chuck DeVore suggested that he would ask that this hearing be cancelled, so that we could work with the Senators and the Senate Judiciary Staff to explain AB250 better, and then bring it back in January of 2008. No one objected to this. We left the July 10, 2007 Hearing, disappointed, but determined to continue working for the passage of AB250. Ultimately AB250 will have to be approved again by the entire Legislature, with numerous votes. THE FOLLOWING INFORMATION IS EDUCATIONAL PURPOSES ONLY To explain to the readers of this website better what AB250 would provide I am including a DRAFT of what this new Deed WOULD look like IF AB250 is passed in its current form, without further amendments.Click HERE for a list of questions about the use of the TOD Deed. DO NOT USE THIS DEED UNTIL PASSED BY THE LEGISLATURE AND SIGNED BY THE GOVERNOR. At that time the State of California will make available the MANDATORY FORM that will be approved later, when AB250 is passed, and it will probably NOT be identical to this form. It is essential that the homeowner use the correct form, which will be passed at a later date. Revocable Transfer on Death (TOD) Deed California Probate Code Section 5600 MORE FROM MARY PAT TOUPS: Please contact your Legislators, both Assembly and Senate, and ask them to vote in favor of AB250 Revocable Transfer on Death (TOD) Deed. A short, handwritten letter would be fine. To determine your current Legislators' addresses, click Here and you will be taken to the California Government Website where you may enter your zip code to find your Legislators' addresses. This TOD Deed allows the homeowner to avoid the expenses of a trust, and avoid the expenses of a probate, and allows the Baby Boomer heirs to avoid payment of any Capital Gains Tax upon sale of the home. This is a win-win-win Deed. Please tell your Legislators.
Home Page \| Background \| AB12 Beneficiary Deeds \| CA Law Revision Commission \| AB12 Newspaper Articles \| Contact Us \| Mary Pat Toups in the LA Times