HB2241

SECTION 1. Chapter 501, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§501- Beneficiary deed. (a) "Beneficiary deed" means a deed that:

(1) Conveys an interest in real property, including any debt secured by a lien on real property, to a grantee beneficiary designated by the owner; and

(2) Expressly states that the deed is effective on the death of the owner.

(b) Notwithstanding any other law to the contrary, a beneficiary deed shall transfer the interest to a designated grantee beneficiary effective on the death of the owner subject to all conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges, and other encumbrances made by the owner or to which the owner was subject during the owner's lifetime; provided that the beneficiary deed is duly executed and recorded before the death of the owner or the last surviving owner.

(c) A beneficiary deed may designate multiple grantee beneficiaries. Multiple grantee beneficiaries may take title as joint tenants with right of survivorship, tenants in common, tenancy by the entirety, or any other tenancy that is valid under state law.

(d) A beneficiary deed may designate a successor grantee beneficiary. If a beneficiary deed designates a successor grantee beneficiary, the deed shall state the condition on which the interest of the successor grantee beneficiary shall vest.

(e) An interest in real property that is owned as joint tenants with right of survivorship or as tenancy by the entirety may be transferred to a designated grantee beneficiary; provided that:

(1) The grantee beneficiary is designated by all of the then surviving owners; and

(2) The beneficiary deed expressly states that the deed is effective on the death of the last surviving owner.

(f) If a beneficiary deed is executed by fewer than all of the owners of real property owned as joint tenants with right of survivorship or tenancy by the entirety, the beneficiary deed shall be valid if the last surviving owner is one of the persons who executed the beneficiary deed. If the last surviving owner did not execute the beneficiary deed, the transfer shall lapse and the deed shall be void.

(g) An estate in joint tenancy with right of survivorship or tenancy by the entirety shall not be affected by the execution of a beneficiary deed that is executed by fewer than all of the owners of the real property, and the rights of a surviving joint tenant with right or survivorship or a surviving spouse in tenancy by the entirety shall prevail over a grantee beneficiary named in a beneficiary deed.

(h) A beneficiary deed may be used to transfer an interest in real property to the trustee of a trust even if the trust is revocable.

(i) A beneficiary deed may be revoked at any time by the owner or, if there is more than one owner, by any of the owners who executed the beneficiary deed; provided that the revocation is duly executed and recorded before the death of the owner who executes the revocation. If the real property is owned as joint tenants with right of survivorship or tenancy by the entirety and the revocation is not executed by all of the owners, the revocation shall not be valid unless executed by the last surviving owner.

(j) If an owner executes and records more than one beneficiary deed concerning the same real property, the last beneficiary deed that is recorded before the owner's death shall be the effective beneficiary deed.

(k) Nothing in this section shall prohibit other methods of conveying real property that are permissible by law and that have the effect of postponing enjoyment of an interest in real property until the death of the owner. This section shall not invalidate any deed otherwise effective by law to convey title to the interest and estates provided in the deed that is not recorded until after the death of the owner.

(l) The signature, consent, or agreement of or notice to a grantee beneficiary of a beneficiary deed shall not be required for any purpose during the lifetime of the owner.

(m) A beneficiary deed that is duly executed, acknowledged, and recorded in accordance with law shall not be revoked by the provisions of a will.

(n) A beneficiary deed may be in form as follows:

I (we) (owner) hereby convey to (grantee beneficiary) effective on my (our) death the following described real property:

(legal description)

(Reference to the number of the certificate of title or document number of the real property, as applicable)

If a grantee beneficiary predeceases the owner, the conveyance to that grantee beneficiary shall either (choose one):

[ ] Become null and void.

[ ] Become part of the estate of the grantee beneficiary.

___________________________

(signature of grantor(s))

(acknowledgement).

(o) The instrument of revocation shall be in a form as prescribed by the supreme court of the State of Hawaii or the department of land and natural resources, as applicable, pursuant to subsection (p).

(p) The supreme court of the State of Hawaii shall adopt rules relating to registered real property necessary to carry out the purposes of this section. The department of land and natural resources shall adopt rules under chapter 91 relating to real property that has not been registered necessary to carry out the purposes of this section.

(q) A grantee beneficiary may disclaim, in whole or part, any interest in real property conveyed by a beneficiary deed, in accordance with the rules adopted pursuant to subsection (p)."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2241
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII