Bill Text: IL HB5235 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Creates the Transfer on Death Deeds Act. Contains provisions that concern: definitions; the effect of a transfer on death deed; rights of creditors; rights of the State and governmental entities; multiple grantee beneficiaries; successor grantee beneficiaries; multiple joint tenant grantors; execution by attorney-in-fact; recording requirements and authorization; deed to trustee or other entity; revocation or modification of transfer on death deed; antilapse; deceased beneficiary; words of survivorship; lapse; multiple transfer on death deeds; nonademption; unpaid proceeds of sale, condemnation, or insurance; sale by conservator or guardian; nonexoneration; disclaimer by beneficiary; effect on other conveyances; notice, consent, and delivery not required; nonrevocation by will; proof of survivorship; after-acquired property; anticipatory alienation prohibited; form of transfer on death deed; and form of instrument of revocation.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2010-03-15 - Rule 19(a) / Re-referred to Rules Committee [HB5235 Detail]
Download: Illinois-2009-HB5235-Introduced.html
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1 | AN ACT concerning deeds.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||
5 | Transfer on Death Deeds Act.
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6 | Section 5. Definitions. As used in this Act: | |||||||||||||||||||
7 | "Beneficiary" or "grantee beneficiary" means a person or | |||||||||||||||||||
8 | entity named as a grantee beneficiary in a transfer on death | |||||||||||||||||||
9 | deed, including a successor grantee beneficiary.
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10 | "Grantor owner" means an owner named as a grantor in a | |||||||||||||||||||
11 | transfer on death deed upon whose death the conveyance or | |||||||||||||||||||
12 | transfer of the described real property is conditioned. Grantor | |||||||||||||||||||
13 | owner does not include a spouse who joins in a transfer on | |||||||||||||||||||
14 | death deed solely for the purpose of conveying or releasing | |||||||||||||||||||
15 | statutory or other marital interests in the real property to be | |||||||||||||||||||
16 | conveyed or transferred by the transfer on death deed.
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17 | "Owner" means a person having an ownership or other | |||||||||||||||||||
18 | interest in all or part of the real property to be conveyed or | |||||||||||||||||||
19 | transferred by a transfer on death deed. Owner does not include | |||||||||||||||||||
20 | a spouse who joins in a transfer on death deed solely for the | |||||||||||||||||||
21 | purpose of conveying or releasing statutory or other marital | |||||||||||||||||||
22 | interests in the real property to be conveyed or transferred by | |||||||||||||||||||
23 | the transfer on death deed.
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1 | "Recorded" means recorded in the office of the recorder, as | ||||||
2 | appropriate, for the real property described in the instrument | ||||||
3 | to be recorded.
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4 | "State agency" means the Department of Health and Human | ||||||
5 | Services or any successor agency.
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6 | "Transfer on death deed" means a deed authorized under this | ||||||
7 | Act.
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8 | Section 10. Effect of transfer on death deed. A deed that | ||||||
9 | (i) conveys or assigns an interest in real property, including | ||||||
10 | a mortgage, judgment, or any other lien on real property, to a | ||||||
11 | grantee beneficiary and (ii) expressly states that the deed is | ||||||
12 | only effective on the death of one or more of the grantor | ||||||
13 | owners transfers the interest to the grantee beneficiary upon | ||||||
14 | the death of the grantor owner upon whose death the conveyance | ||||||
15 | or transfer is stated to be effective. A transfer on death deed | ||||||
16 | must comply with all provisions of Illinois law applicable to | ||||||
17 | deeds of real property.
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18 | Section 15. Rights of creditors and rights of State and | ||||||
19 | governmental entities. The interest transferred to a | ||||||
20 | beneficiary under a transfer on death deed after the death of a | ||||||
21 | grantor owner is transferred subject to all effective | ||||||
22 | conveyances, assignments, contracts, mortgages, deeds of | ||||||
23 | trust, liens, security pledges, judgments, tax liens, and other | ||||||
24 | encumbrances made by the grantor owner or to which the property |
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1 | was subject during the grantor owner's lifetime, including, but | ||||||
2 | not limited to, any claim by a surviving spouse or any claim or | ||||||
3 | lien by the State or a governmental entity, if other assets of | ||||||
4 | the deceased owner's estate are insufficient to pay the amount | ||||||
5 | of that claim. A beneficiary to whom the interest is | ||||||
6 | transferred after the death of a grantor owner shall be liable | ||||||
7 | to account to the State or any governmental entity with a claim | ||||||
8 | or lien, to the extent necessary to discharge the claim | ||||||
9 | remaining unpaid after application of the assets of the | ||||||
10 | deceased grantor owner's estate, but that liability shall be | ||||||
11 | limited to the value of the interest transferred to the | ||||||
12 | beneficiary.
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13 | Section 20. Multiple grantee beneficiaries. A transfer on | ||||||
14 | death deed may designate multiple grantee beneficiaries to take | ||||||
15 | title as joint tenants, as tenants in common, tenants by the | ||||||
16 | entirety, or in any other form of ownership or tenancy that is | ||||||
17 | valid under law.
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18 | Section 25. Successor grantee beneficiaries. A transfer on | ||||||
19 | death deed may designate one or more successor grantee | ||||||
20 | beneficiaries or a class of successor grantee beneficiaries, or | ||||||
21 | both. If the transfer on death deed designates successor | ||||||
22 | grantee beneficiaries or a class of successor grantee | ||||||
23 | beneficiaries, the deed shall state the condition under which | ||||||
24 | the interest of the successor grantee beneficiaries would vest.
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1 | Section 30. Multiple joint tenant grantors. If an interest | ||||||
2 | in real property is owned as joint tenants, a transfer on death | ||||||
3 | deed executed by all of the owners that conveys an interest in | ||||||
4 | real property to one or more grantee beneficiaries transfers | ||||||
5 | the interest to the grantee beneficiary or beneficiaries | ||||||
6 | effective only after the death of the last surviving grantor | ||||||
7 | owner. If the last surviving joint tenant owner did not execute | ||||||
8 | the transfer on death deed, the deed is ineffective to transfer | ||||||
9 | any interest, and the deed is void. A joint tenancy is not | ||||||
10 | severed or affected by the subsequent execution of a transfer | ||||||
11 | on death deed, and the right of a surviving joint tenant who | ||||||
12 | did not execute the transfer on death deed shall prevail over a | ||||||
13 | grantee beneficiary named in a transfer on death deed unless | ||||||
14 | the deed specifically states that it severs the joint tenancy | ||||||
15 | ownership.
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16 | Section 35. Execution by attorney-in-fact. A transfer on | ||||||
17 | death deed may be executed by a duly appointed attorney-in-fact | ||||||
18 | pursuant to a power of attorney that grants the | ||||||
19 | attorney-in-fact the authority to execute deeds.
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20 | Section 40. Recording requirements and authorization. A | ||||||
21 | transfer on death deed is valid if the deed is recorded in a | ||||||
22 | county in which at least a part of the real property described | ||||||
23 | in the deed is located and is recorded before the death of the |
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1 | grantor owner upon whose death the conveyance or transfer is | ||||||
2 | effective. A transfer on death deed is not effective until the | ||||||
3 | deed is recorded in the county in which the real property is | ||||||
4 | located. A transfer on death deed that otherwise satisfies all | ||||||
5 | statutory requirements for recording may be recorded and shall | ||||||
6 | be accepted for recording in the county in which the property | ||||||
7 | described in the deed is located.
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8 | Section 45. Deed to trustee or other entity. A transfer on | ||||||
9 | death deed may transfer an interest in real property to the | ||||||
10 | trustee of an inter vivos trust, even if the trust is | ||||||
11 | revocable, to the trustee of a testamentary trust, or to any | ||||||
12 | other entity legally qualified to hold title to real property | ||||||
13 | under law.
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14 | Section 50. Revocation or modification of transfer on death | ||||||
15 | deed.
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16 | (a) A transfer on death deed may be revoked at any time by | ||||||
17 | the grantor owner or, if there is more than one grantor owner, | ||||||
18 | by a grantor owner. To be effective, the revocation must be | ||||||
19 | recorded in the county in which at least a part of the real | ||||||
20 | property is located before the death of the grantor owner or | ||||||
21 | owners who execute the revocation. The revocation is not | ||||||
22 | effective until the revocation is recorded in the county in | ||||||
23 | which the real property is located. Subject to Section 30, if | ||||||
24 | the real property is owned by joint tenants and if the |
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1 | revocation is not executed by all of the grantor owners, the | ||||||
2 | revocation is not effective unless executed by the last | ||||||
3 | surviving grantor owner.
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4 | (b) If a grantor owner conveys to a third party, after the | ||||||
5 | recording of the transfer on death deed, by means other than a | ||||||
6 | transfer on death deed, all or a part of the grantor owner's | ||||||
7 | interest in the property described in the transfer on death | ||||||
8 | deed, no transfer of the conveyed interest shall occur on the | ||||||
9 | grantor owner's death, and the transfer on death deed shall be | ||||||
10 | ineffective as to the conveyed or transferred interests, but | ||||||
11 | the transfer on death deed remains effective with respect to | ||||||
12 | the conveyance or transfer on death of any other interests | ||||||
13 | described in the transfer on death deed owned by the grantor | ||||||
14 | owner at the time of the grantor owner's death.
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15 | (c) A transfer on death deed, except as may otherwise be | ||||||
16 | specifically provided for in the transfer on death deed, is | ||||||
17 | subject to the same provisions as to revocation, revival, and | ||||||
18 | nonrevocation.
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19 | Section 55. Antilapse; deceased beneficiary; words of | ||||||
20 | survivorship.
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21 | (a) If a grantee beneficiary who is a grandparent or lineal | ||||||
22 | descendant of a grandparent of the grantor owner fails to | ||||||
23 | survive the grantor owner, the issue of the deceased grantee | ||||||
24 | beneficiary who survive the grantor owner take in place of the | ||||||
25 | deceased grantee beneficiary. If they are all of the same |
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1 | degree of kinship to the deceased grantee beneficiary, they | ||||||
2 | take equally. If they are of unequal degree, those of more | ||||||
3 | remote degree take by right of representation.
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4 | (b) For the purposes of this Section, words of survivorship | ||||||
5 | such as, in a conveyance to an individual, "if he or she | ||||||
6 | survives me," or, in a class gift, to "my surviving children," | ||||||
7 | are a sufficient indication of intent to condition the | ||||||
8 | conveyance or transfer upon the beneficiary surviving the | ||||||
9 | grantor owner.
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10 | Section 60. Lapse. If all beneficiaries and all successor | ||||||
11 | beneficiaries, if any, designated in a transfer on death deed | ||||||
12 | and all successor beneficiaries who would take under the | ||||||
13 | antilapse provisions of Section 55 fail to survive the grantor | ||||||
14 | owner or the last survivor of the grantor owners if there are | ||||||
15 | multiple grantor owners, or if the beneficiary is a trust which | ||||||
16 | has been revoked prior to the grantor owner's death, or if the | ||||||
17 | beneficiary is an entity no longer in existence at the grantor | ||||||
18 | owner's death, then no transfer shall occur, and the transfer | ||||||
19 | on death deed is void.
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20 | Section 65. Multiple transfer on death deeds. If a grantor | ||||||
21 | owner executes and records more than one transfer on death deed | ||||||
22 | conveying the same interest in real property or a greater | ||||||
23 | interest in the real property, the transfer on death deed that | ||||||
24 | has the latest acknowledgment date and that is recorded before |
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1 | the death of the grantor owner upon whose death the conveyance | ||||||
2 | or transfer is conditioned is the effective transfer on death | ||||||
3 | deed, and all other transfer on death deeds, if any, executed | ||||||
4 | by the grantor owner or the grantor owners are ineffective to | ||||||
5 | transfer any interest and are void.
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6 | Section 70. Nonademption; unpaid proceeds of sale, | ||||||
7 | condemnation, or insurance; sale by conservator or guardian. If | ||||||
8 | at the time of the death of the grantor owner upon whose death | ||||||
9 | the conveyance or transfer is stated to be effective, the | ||||||
10 | grantor owner did not own a part or all of the real property | ||||||
11 | described in the transfer on death deed, no conveyance or | ||||||
12 | transfer to the beneficiary of the non-owned part of the real | ||||||
13 | property shall occur upon the death of the grantor owner, and | ||||||
14 | the transfer on death deed is void as to the non-owned part of | ||||||
15 | the real property, but the beneficiary shall have the same | ||||||
16 | rights to unpaid proceeds of sale, condemnation, or insurance, | ||||||
17 | and, if sold by a conservator or guardian of the grantor owner | ||||||
18 | during the grantor owner's lifetime, the same rights to a | ||||||
19 | general pecuniary devise as that of a specific devisee.
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20 | Section 75. Nonexoneration. Except as otherwise provided | ||||||
21 | in Section 15, a conveyance or transfer under a transfer on | ||||||
22 | death deed passes the described property subject to any | ||||||
23 | mortgage or security interest existing at the date of death of | ||||||
24 | the grantor owner, without right of exoneration, regardless of |
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1 | any statutory obligations to pay the grantor owner's debts upon | ||||||
2 | death and regardless of a general directive in the grantor | ||||||
3 | owner's will to pay debts.
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4 | Section 80. Disclaimer by beneficiary. A grantee | ||||||
5 | beneficiary's interest under a transfer on death deed may be | ||||||
6 | disclaimed as provided by law.
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7 | Section 85. Effect on other conveyances. This Section does | ||||||
8 | not prohibit other methods of conveying property that are | ||||||
9 | permitted by law and that have the effect of postponing | ||||||
10 | ownership or enjoyment of an interest in real property until | ||||||
11 | the death of the owner. This Section does not invalidate any | ||||||
12 | deed that is not a transfer on death deed and that is otherwise | ||||||
13 | effective to convey title to the interests and estates | ||||||
14 | described in the deed that is not recorded until after the | ||||||
15 | death of the owner.
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16 | Section 90. Notice, consent, and delivery not required. The | ||||||
17 | signature, consent, or agreement of, or notice to, a grantee | ||||||
18 | beneficiary under a transfer on death deed, or delivery of the | ||||||
19 | transfer on death deed to the grantee beneficiary, is not | ||||||
20 | required for any purpose during the lifetime of the grantor | ||||||
21 | owner.
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22 | Section 95. Nonrevocation by will. A transfer on death deed |
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1 | that is executed, acknowledged, and recorded in accordance with | ||||||
2 | this Act is not revoked by the provisions of a will.
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3 | Section 100. After-acquired property. Except as provided | ||||||
4 | in this Section, a transfer on death deed is not effective to | ||||||
5 | transfer any interest in real property acquired by a grantor | ||||||
6 | owner subsequent to the date of signing of a transfer on death | ||||||
7 | deed. A grantor owner may provide by specific language in a | ||||||
8 | transfer on death deed that the transfer on death deed will | ||||||
9 | apply to any interest in the described property acquired by the | ||||||
10 | grantor owner after the signing or recording of the deed.
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11 | Section 105. Anticipatory alienation prohibited. The | ||||||
12 | interest of a grantee beneficiary under a transfer on death | ||||||
13 | deed which has not yet become effective is not subject to | ||||||
14 | alienation; assignment; encumbrance; appointment or | ||||||
15 | anticipation by the beneficiary; garnishment; attachment; | ||||||
16 | execution or bankruptcy proceedings; claims for support or | ||||||
17 | maintenance; payment of other obligations by any person against | ||||||
18 | the beneficiary; or any other transfer, voluntary or | ||||||
19 | involuntary, by or from any beneficiary.
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20 | Section 110. Form of transfer on death deed. A transfer on | ||||||
21 | death deed may be substantially in the following form:
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22 | Transfer on Death Deed
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1 | I (we) ....................(grantor owner or owners and | ||||||
2 | spouses, if any, with marital status designated), grantor(s), | ||||||
3 | hereby convey(s) and quitclaim(s) to .................... | ||||||
4 | (grantee beneficiary, whether one or more) effective (check | ||||||
5 | only one of the following)
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6 | ..... on the death of the grantor owner, if only one grantor is | ||||||
7 | named above, or on the death of the last of the grantor owners | ||||||
8 | to die, if more than one grantor owner is named above, or | ||||||
9 | ..... on the death of (name of grantor owner)
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10 | .................... (must be one of the grantor owners named | ||||||
11 | above), the following described real property:
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12 | (Legal description)
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13 | If checked, the following optional statement applies: | ||||||
14 | ..... When effective, this instrument conveys any and all | ||||||
15 | interests in the described real property acquired by the | ||||||
16 | grantor owner(s) before, on, or after the date of this | ||||||
17 | instrument.
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18 | (Signature of grantor(s))
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19 | (acknowledgment)
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1 | Section 115. Form of instrument of revocation. An | ||||||
2 | instrument of revocation may be substantially in the following | ||||||
3 | form:
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4 | Revocation of Transfer on Death Deed
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5 | The undersigned hereby revokes the transfer on death deed | ||||||
6 | recorded on .........., ....., as Document No. .......... (or | ||||||
7 | in Book .......... of.........., Page .....) in the office of | ||||||
8 | the Recorder of .......... County, Illinois, affecting real | ||||||
9 | property legally described as follows:
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10 | (legal description)
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11 | Dated:
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12 | Signature
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13 | (acknowledgment)
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