Motor Vehicles and Marine Vessels - Transfer-on-Death Designations, the official text

WES MOORE, Governor                  Ch. 72

Chapter 72

                   (House Bill 174)

AN ACT concerning

Motor Vehicles and Marine Vessels – Transfer–on–Death Designations

FOR the purpose of authorizing an individual who is the sole owner of a marine vessel or
         multiple individuals who co–own a marine vessel under certain ownership
         registrations to apply to the Department of Natural Resources to designate a
         beneficiary to take ownership of the marine vessel on the death of the owner or each
         co–owner; altering certain provisions of law governing the transfer–on–death
         designation for motor vehicles to allow multiple individuals who co–own a motor
         vehicle under certain ownership registrations to designate a transfer–on–death
         beneficiary; and generally relating to transfer–on–death beneficiaries for motor
         vehicles and marine vessels.

BY adding to
         Article – Natural Resources
         Section 8–720.1
         Annotated Code of Maryland
         (2023 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Article – Transportation
         Section 13–115
         Annotated Code of Maryland
         (2020 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                   Article – Natural Resources

8–720.1.

        (A) AN INDIVIDUAL WHO IS THE SOLE OWNER OF A VESSEL OR MULTIPLE
INDIVIDUALS WHO CO–OWN A VESSEL AS JOINT TENANTS WITH RIGHT OF
SURVIVORSHIP OR TENANTS BY THE ENTIRETY MAY APPLY TO THE DEPARTMENT TO

DESIGNATE A BENEFICIARY TO TAKE OWNERSHIP OF THE VESSEL ON THE DEATH OF

THE SOLE OWNER OR THE LAST SURVIVING CO–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.

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Ch. 72  2026 LAWS OF MARYLAND

        (C) (1) THE DESIGNATION OF A BENEFICIARY FOR A VESSEL DOES NOT

AFFECT THE OWNERSHIP OF THE VESSEL UNTIL THE DEATH OF THE SOLE OWNER

OR THE LAST SURVIVING CO–OWNER OF THE VESSEL.

                (2) THE DESIGNATION OF A BENEFICIARY MAY BE REVOKED OR

CHANGED AT ANY TIME BEFORE THE DEATH OF THE SOLE OWNER OR THE LAST

SURVIVING CO–OWNER WITHOUT THE CONSENT OF THE BENEFICIARY BY APPLYING
TO THE DEPARTMENT.

        (D) THE DESIGNATION OF A BENEFICIARY IS NOT REQUIRED TO BE

SUPPORTED BY CONSIDERATION AND THE CERTIFICATE OF TITLE OF THE VESSEL
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 SOLE OWNER OR THE LAST SURVIVING
CO–OWNER OF A VESSEL WHO HAS DESIGNATED A BENEFICIARY, OWNERSHIP OF

THE VESSEL SHALL PASS TO THE BENEFICIARY IF THE BENEFICIARY SURVIVES THE

SOLE OWNER OR THE LAST SURVIVING CO–OWNER.

        (F) (1) A DESIGNATED BENEFICIARY WHO SURVIVES THE SOLE OWNER
OR THE LAST SURVIVING CO–OWNER SHALL APPLY TO THE DEPARTMENT FOR A NEW
CERTIFICATE OF TITLE FOR THE VESSEL.

                (2) AN APPLICATION FOR A CERTIFICATE OF TITLE BY A BENEFICIARY
FOLLOWING THE DEATH OF THE SOLE OWNER OR LAST SURVIVING CO–OWNER
SHALL INCLUDE:

                         (I) THE ORIGINAL CERTIFICATE OF TITLE DESIGNATING THE
BENEFICIARY;

                         (II) A DEATH CERTIFICATE FOR THE DECEASED SOLE OWNER
OR EACH DECEASED CO–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
SOLE OWNER OR LAST SURVIVING CO–OWNER, THE VESSEL IS PART OF THE ESTATE
OF THE DECEASED OWNER OR LAST SURVIVING CO–OWNER.

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WES MOORE, Governor  Ch. 72

        (H) THIS SECTION DOES NOT LIMIT THE RIGHTS OF CREDITORS OF VESSEL

OWNERS AGAINST BENEFICIARIES AND OTHER TRANSFEREES UNDER OTHER LAWS

OF THE STATE.

        (I) THE DEPARTMENT MAY CHARGE A FEE, NOT TO EXCEED ITS COSTS, FOR
ISSUING A CERTIFICATE OF TITLE UNDER THIS SECTION.

        (J) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS
SECTION.

                                            Article – Transportation

13–115.

         (a) An individual who is the sole owner of a motor vehicle OR MULTIPLE
INDIVIDUALS WHO CO–OWN A MOTOR VEHICLE AS JOINT TENANTS WITH RIGHT OF
SURVIVORSHIP OR TENANTS BY THE ENTIRETY may apply to the Administration to
designate a beneficiary to take ownership of the motor vehicle on the death of the SOLE
owner OR THE LAST SURVIVING CO–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 SOLE owner OR THE LAST
SURVIVING CO–OWNER of the motor vehicle.

                (2) [The owner of a motor vehicle may cancel or change the designation of
a beneficiary at any time] THE DESIGNATION OF A BENEFICIARY MAY BE REVOKED OR

CHANGED AT ANY TIME BEFORE THE DEATH OF THE SOLE OWNER OR THE LAST

SURVIVING CO–OWNER 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 SOLE owner OR THE LAST SURVIVING CO–OWNER of a
motor vehicle who has designated a beneficiary, ownership of [a] THE motor vehicle shall
pass to the beneficiary if the beneficiary survives the SOLE owner OR THE LAST
SURVIVING CO–OWNER.

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Ch. 72  2026 LAWS OF MARYLAND

         (f) (1) A designated beneficiary who survives the SOLE owner OR THE LAST
SURVIVING CO–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 SOLE owner OR LAST SURVIVING CO–OWNER shall include:

                           (i) The original certificate of title designating the beneficiary;

                           (ii) A death certificate for the deceased SOLE owner OR EACH
DECEASED CO–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 SOLE owner OR
LAST SURVIVING CO–OWNER, the motor vehicle is part of the estate of the deceased owner
OR LAST SURVIVING CO–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.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2026.

Approved by the Governor, April 14, 2026.

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