MN SF1040

Allows natural persons to designate watercraft in transfer-on-death (TOD) form by naming beneficiaries to receive the watercraft upon the owner's death, with beneficiaries having no interest until death occurs and designations changeable at any time without beneficiary consent.

Allows natural persons to designate motor vehicles in transfer-on-death (TOD) form by naming beneficiaries to receive the vehicle upon the owner's death, with a requirement that if the owner is married, designating a beneficiary other than the spouse requires the spouse's written consent.

Transfers of watercraft and motor vehicles to TOD beneficiaries are not testamentary transfers and pass subject to the rights of secured parties and creditors, including state and county agencies with claims for medical assistance under specified statutes.

Exempts transfer-on-death acquisitions of motor vehicles from motor vehicle sales tax by amending the definition of "sale" to exclude acquisition by inheritance, bequest, or transfer-on-death of title from a deceased owner.

Includes transfer-on-death title and deed transfers in the definition of assets subject to medical assistance recovery claims under Minnesota Statutes section 256B.15.