(a) An individual who is the sole owner of a motor vehicle may apply to the Administration to designate a beneficiary to take ownership of the motor vehicle on the death of the owner.
(b) The designation of a beneficiary may be shown by the words “transfer–on–death” or the abbreviation “TOD” after the name of the registered owner on a certificate of title.
(c) (1) The designation of a beneficiary for a motor vehicle does not affect the ownership of the motor vehicle until the death of the owner of the motor vehicle.
(2) The owner of a motor vehicle may cancel or change the designation of a beneficiary at any time without the consent of the beneficiary by applying to the Administration.
(d) The designation of a beneficiary is not required to be supported by consideration, and the certificate of title of the motor vehicle for which the designation is made is not required to be delivered to the beneficiary in order for the designation to be effective.
(e) On the death of the owner of a motor vehicle who has designated a beneficiary, ownership of a motor vehicle shall pass to the beneficiary if the beneficiary survives the owner.
(f) (1) A designated beneficiary who survives the owner shall apply to the Administration for a new certificate of title for the motor vehicle.
(2) An application for a certificate of title by a beneficiary following the death of the owner shall include:
(i) The original certificate of title designating the beneficiary;
(ii) A death certificate for the deceased owner;
(iii) Proof of the identity of the beneficiary; and
(iv) Any applicable taxes or fees.
(g) If a designated beneficiary does not survive the death of the owner, the motor vehicle is part of the estate of the deceased owner.
(h) This section does not limit the rights of creditors of motor vehicle owners against beneficiaries and other transferees under other laws of this State.
(i) The Administration may charge a fee, not to exceed its costs, for issuing a certificate of title under this section.
(j) The Administration may adopt regulations to carry out this section.
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