MN SF1287

Allows motor vehicle owners to designate beneficiaries on the certificate of title using "transfer-on-death" (TOD) designation, with ownership vesting automatically upon owner's death without probate.

Beneficiaries have no interest in the vehicle during the owner's lifetime and the designation can be changed at any time without beneficiary consent by filing a new certificate of title.

Surviving TOD beneficiaries may apply for a new certificate of title by submitting proof of the owner's death; if no beneficiary survives, the vehicle enters the probate estate.

Exempts transfer-on-death transfers from motor vehicle sales tax by adding TOD transfers to the list of excluded transactions in Minnesota Statutes section 297B.01, subdivision 16.

Preserves rights of all secured parties and creditors against TOD beneficiaries, and clarifies that TOD transfers are not testamentary transfers.