HB-6695, As Passed House, December 6, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6695

      A bill to amend 1846 RS 65, entitled

"Of alienation by deed, and the proof and recording of

conveyances, and the canceling of mortgages,"

(MCL 565.1 to 565.49) by adding section 50.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1        Sec. 50. (1) As used in this section:

 2        (a) "Beneficiary deed" means a deed authorized under this

 3  section.

 4        (b) "Owner" means any person who executes a beneficiary deed

 5  as provided in this section.

 6        (2) A deed that conveys an interest in real property,

 7  including any debt secured by a lien on real property, to a

 8  grantee beneficiary designated by the owner and that expressly

 9  states that the deed is effective on the death of the owner

10  transfers the interest to the designated grantee beneficiary

 1  effective on the death of the owner subject to all conveyances,

 2  assignments, contracts, mortgages, deeds of trust, liens,

 3  security pledges, and other encumbrances made by the owner or to

 4  which the owner was subject during the owner's lifetime.

 5        (3) A beneficiary deed may designate multiple grantees who

 6  take title as joint tenants with right of survivorship, tenants

 7  in common, tenants by the entireties, or any other tenancy that

 8  is valid under the laws of this state.

 9        (4) A beneficiary deed may designate a successor grantee

10  beneficiary. If the beneficiary deed designates a successor

11  grantee beneficiary, the deed shall state the condition on which

12  the interest of the successor grantee beneficiary would vest.

13        (5) If real property is owned as joint tenants with the

14  right of survivorship, a deed that conveys an interest in the

15  real property to a grantee beneficiary designated by all of the

16  then surviving owners and that expressly states that the deed is

17  effective on the death of the last surviving owner transfers the

18  interest to the designated grantee beneficiary effective on the

19  death of the last surviving owner. If a beneficiary deed is

20  executed by fewer than all of the owners of real property owned

21  as joint tenants with right of survivorship or tenancy by the

22  entireties, the beneficiary deed is valid if the last surviving

23  owner is 1 of the persons who executes the beneficiary deed. If

24  the last surviving owner did not execute the beneficiary deed,

25  the transfer lapses and the deed is void. An estate in joint

26  tenancy with right of survivorship is not affected by the

27  execution of a beneficiary deed that is executed by fewer than

 1  all of the owners of the real property, and the rights of a

 2  surviving joint tenant with right of survivorship prevails over a

 3  grantee beneficiary named in a beneficiary deed.

 4        (6) A beneficiary deed is valid only if the deed is executed

 5  and recorded as provided by law in the office of the county

 6  register of deeds of the county in which the property is located

 7  before the death of the owner or the last surviving owner. A

 8  beneficiary deed may be used to transfer an interest in real

 9  property to the trustee of a trust even if the trust is

10  revocable.

11        (7) A beneficiary deed may be revoked at any time by the

12  owner or, if there is more than 1 owner, by any of the owners who

13  executed the beneficiary deed. To be effective, the revocation

14  must be executed and recorded as provided by law in the office of

15  the county register of deeds of the county in which the real

16  property is located before the death of the owner who executes

17  the revocation. If the real property is owned as joint tenants

18  with right of survivorship and if the revocation is not executed

19  by all the owners, the revocation is not effective unless

20  executed by the last surviving owner.

21        (8) If an owner executes and records more than 1 beneficiary

22  deed concerning the same real property, the last beneficiary deed

23  that is recorded before the owner's death is the effective

24  beneficiary deed.

25        (9) This section does not prohibit other methods of

26  conveying property that are permitted by law and that have the

27  effect of postponing enjoyment of an interest in real property

 1  until the death of the owner. This section does not invalidate

 2  any deed otherwise effective by law to convey title to the

 3  interests and estates provided in the deed that is not recorded

 4  until after the death of the owner.

 5        (10) The signature, consent, or agreement of or notice to a

 6  grantee beneficiary of a beneficiary deed is not required for any

 7  purpose during the lifetime of the owner.

 8        (11) A beneficiary deed that is executed, acknowledged, and

 9  recorded in accordance with this section is not revoked by the

10  provisions of a will.

11        (12) A beneficiary deed is sufficient if it complies with

12  other applicable laws and if it is in substantially the following

13  form:

14 Beneficiary Deed

15      I (we) ___________________ (owner) whose address is/are

16 ____________________________________________ convey(s) to

17 ______________________ (grantee beneficiary) whose address

18 is/are _______________________________________ effective on

19 my (our) death the following described real property situated

20 in the county of __________________ and the state of Michigan:

21

22 (Legal description)

23 __________________________________________________________

24 Together with all and singular the tenements, hereditaments,

25 and appurtenances thereunto belonging or in any way pertaining

26 thereto, subject to easements and building and use restrictions

27 of record.

28 NOTICE: By signing this deed, a married person is surrendering

1  rights that he or she might otherwise have in the property.

2  Dated this ______________ day of ___________________, _____.

3  WITNESSES:                    Signed by:

4  ___________________________   ______________________________

5  ___________________________   ______________________________

6                                ______________________________

7  STATE OF MICHIGAN       }     ______________________________

8  COUNTY OF ______________}

9       The foregoing instrument was acknowledged before me

10 this ___________ day of _____________ by __________________.

11                              _______________________________

12                                               Notary Public,

13                              _______________County, Michigan

14                   My Commission expires _____________, ____.

15 When recorded, return to:

16 _________________________

17 Name

18 _________________________

19 Street Address

20 _________________________

21 City and State

22        (13) The instrument of revocation shall be sufficient if it

23  complies with other applicable laws and is in substantially the

24  following form:

25 Revocation of Beneficiary Deed

26      The undersigned hereby revokes the beneficiary deed

27 recorded on ___________ (date), in docket or book __________

28 at page ______, or instrument number ______, records of

29 ____________________________ county, Michigan.

30 Dated this ______________ day of ___________________, _____.

31 WITNESSES:                    Signed by:

1  ___________________________   ______________________________

2  ___________________________   ______________________________

3                                ______________________________

4  STATE OF MICHIGAN       }     ______________________________

5  COUNTY OF ______________}

6       The foregoing instrument was acknowledged before me

7  this ___________ day of _____________ by __________________.

8                               _______________________________

9                                                Notary Public,

10                              _______________County, Michigan

11                   My Commission expires _____________, ____.