Subdivision 1. Titled as transfer-on-death. A natural person who is the owner of a watercraft may have the watercraft titled in transfer-on-death or TOD form by including in the application for the certificate of title a designation of a beneficiary or beneficiaries to whom the watercraft must be transferred on death of the owner or the last survivor of joint owners with rights of survivorship, subject to the rights of secured parties.
Subd. 2. Designation of beneficiary. A watercraft is registered in transfer-on-death form by designating on the certificate of title the name of the owner and the names of joint owners with identification of rights of survivorship, followed by the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is not required to be supported by consideration, and the certificate of title in which the designation is made is not required to be delivered to the beneficiary or beneficiaries in order for the designation to be effective.
Subd. 3. Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries have no interest in the watercraft until the death of the owner or the last survivor of joint owners with rights of survivorship. A beneficiary designation may be changed at any time by the owner or by all joint owners with rights of survivorship, without the consent of the beneficiary or beneficiaries, by filing an application for a new certificate of title.
Subd. 4. Vesting of ownership in beneficiary. Ownership of a watercraft titled in transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of the owner or the last of the joint owners with rights of survivorship, subject to the rights of secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner may apply for a new certificate of title to the watercraft upon submitting a certified death record of the owner of the watercraft. If no transfer-on-death beneficiary or beneficiaries survive the owner of a watercraft, the watercraft must be included in the probate estate of the deceased owner. A transfer of a watercraft to a transfer-on-death beneficiary or beneficiaries is not a testamentary transfer.
Subd. 5. Rights of creditors. (a) This section does not limit the rights of any secured party or creditor of the owner of a watercraft against a transfer-on-death beneficiary or beneficiaries.
(b) The state or a county agency with a claim or lien authorized by section 246.53, 256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim or lien under those sections continues to apply against the designated beneficiary or beneficiaries after the transfer under this section if other assets of the deceased owner's estate are insufficient to pay the amount of the claim. The claim or lien continues to apply to the watercraft until the designated beneficiary sells or transfers it to a person against whom the claim or lien does not apply and who did not have actual notice or knowledge of the claim or lien.
2016 c 189 art 3 s 27
Structure Minnesota Statutes
Chapters 85 - 87A — Recreation
Chapter 86B — Water Safety And Watercraft
Section 86B.001 — Water Use Policy.
Section 86B.005 — Definitions.
Section 86B.101 — Watercraft Safety Program.
Section 86B.105 — Sheriff's Safety Program.
Section 86B.106 — Barring Vehicles From Unsafe Ice.
Section 86B.107 — Removing Submerged Vehicles From State Waters.
Section 86B.111 — Navigation Markers And Buoys.
Section 86B.115 — Using Docks And Structures For Advertising.
Section 86B.121 — Races, Competitions, And Exhibitions.
Section 86B.125 — Leased Watercraft.
Section 86B.13 — Aquatic Invasive Species Prevention Program.
Section 86B.201 — State Law And Local Ordinance Authority.
Section 86B.205 — Water Surface Use Ordinance.
Section 86B.211 — Water Safety Rules.
Section 86B.301 — Watercraft Licenses Required.
Section 86B.305 — Youth Operators.
Section 86B.311 — General Rules For Operation.
Section 86B.313 — Personal Watercraft; Regulations.
Section 86B.315 — Towing Person On Water Skis Or Other Device.
Section 86B.321 — Noise Limits.
Section 86B.325 — Discharge From Marine Toilets Prohibited.
Section 86B.33 — Operating While Impaired.
Section 86B.335 — Testing For Alcohol And Controlled Substances.
Section 86B.341 — Duties And Liabilities At Accident Or Incident.
Section 86B.401 — Watercraft Licenses.
Section 86B.405 — Dealer's License.
Section 86B.411 — Government Watercraft Licenses.
Section 86B.415 — License Fees.
Section 86B.421 — Licensing By Political Subdivisions.
Section 86B.501 — Personal Flotation And Lifesaving Devices.
Section 86B.505 — Watercraft Capacity Plates.
Section 86B.515 — Sirens And Sound-producing Devices.
Section 86B.521 — Motorboat Noise Control.
Section 86B.525 — Device For Arresting Backfire.
Section 86B.531 — Fire Extinguishers And Fuel Area Ventilation.
Section 86B.532 — Carbon Monoxide Detection; System Requirements.
Section 86B.535 — Marine Toilets.
Section 86B.601 — Scuba Diving.
Section 86B.701 — Funding County Water Safety.
Section 86B.705 — Allocating Water Recreation Account, Fines, And Forfeited Bail Money.
Section 86B.706 — Water Recreation Account; Receipts And Purpose.
Section 86B.801 — Enforcement Authority.
Section 86B.805 — Enforcement Watercraft.
Section 86B.811 — Criminal Penalties.
Section 86B.815 — Violation As Evidence In Civil Action.
Section 86B.820 — Definitions.
Section 86B.825 — Certificate Of Title Required.
Section 86B.830 — Applying For And Issuing Certificate Of Title.
Section 86B.835 — Dealer Acquisition And Transfer.
Section 86B.840 — Transfer By Owner.
Section 86B.841 — Transfer-on-death Title To Watercraft.
Section 86B.845 — Temporary Watercraft Use Permits.
Section 86B.850 — Duplicate Certificate.
Section 86B.855 — Suspending Or Revoking Certificate.
Section 86B.860 — Responsibilities Of Commissioner.
Section 86B.875 — Inapplicable Liens And Security Interests.
Section 86B.880 — Security Interests.
Section 86B.885 — Owner-created Security Interest.
Section 86B.890 — Licensed Watercraft Previously Perfected.
Section 86B.895 — Satisfaction Of Security Interest.
Section 86B.900 — Disclosing Security Agreement.
Section 86B.905 — Effect Of Suspension Or Revocation On Security Interest.
Section 86B.910 — Undisclosed Security Interests.