LRB-4559/1
FFK:amn
2017 - 2018 LEGISLATURE
November 6, 2017 - Introduced by Senators Lasee and Olsen, cosponsored by
Representatives Ballweg, Summerfield, Katsma, Horlacher, Murphy and
Kulp. Referred to Committee on Revenue, Financial Institutions and Rural
Issues.
SB507,1,7 1An Act to renumber and amend 705.15 (1), 705.15 (2), 708.15 (3) (f) and 867.03
2(2m) (a); to amend 705.15 (3), 705.15 (4), 708.15 (3) (d) (intro.) and 867.03 (1g)
3(intro.); and to create 705.15 (1b), 705.15 (1m) (a) to (e), 705.15 (2) (a) 2., 3. and
44., 705.15 (7), 705.15 (8), 708.15 (3) (f) 2., 867.03 (1p), 867.03 (2m) (a) 1. and 2.
5and 867.03 (2m) (c) of the statutes; relating to: nonprobate transfers of real
6estate, the transfer by affidavit procedure for small estates, and the payoff
7amount in a mortgage payoff statement.
Analysis by the Legislative Reference Bureau
Nonprobate transfers of real property on death
Under current law, a person may transfer an interest in real property that is
solely owned, owned by spouses as survivorship marital property, or owned by two
or more persons as joint tenants to a designated beneficiary without probate by
designating a beneficiary on a transfer of death (TOD) deed. A beneficiary
designation on a TOD deed does not affect ownership of the interest in real property
until the owner's death.
Under the bill, a person may designate a TOD beneficiary in any document, not
solely in a deed. The bill also provides that the interests in real property that may
be transferred using a TOD document include a fractional interest in real property
owned as tenants in common and an interest in real property owned by a spouse as

marital property without a right of survivorship. Under the bill, a TOD beneficiary
designation is not effective unless the TOD document and any fees required to record
the document are submitted to the register of deeds office of the county in which the
real property is located prior to the death of the owner.
Lastly, the bill creates a statute of limitations for claims to recover real property
transferred to a beneficiary using a TOD document. Under the bill, such a claim is
barred unless, within 120 days after the death of the sole owner or the last to die of
the multiple owners who executed the TOD document, a complaint is filed and a lis
pendens is filed or recorded in each county where any part of the real property is
located.
Transfer by affidavit procedure for small estates
Under current law, an heir, trustee, or person who was a guardian of a decedent
at the time of the decedent's death may use a transfer by affidavit procedure to settle
a decedent's estate if the value of the decedent's property does not exceed $50,000.
This bill specifies that the transfer by affidavit procedure may be utilized only if the
gross value of the decedent's estate does not exceed $50,000. If the transfer by
affidavit procedure is used to transfer an interest in or lien on real property, the bill
requires the person making the affidavit to provide notice to the decedent's heirs at
least 30 days before recording the affidavit in the office of the register of deeds in each
county where the real property is located. Under current law and under the bill, the
recording of the affidavit constitutes the transfer of real property to the affiant under
the transfer by affidavit procedure. Finally, under the bill, if an interest in real
property transferred using the transfer by affidavit procedure is subsequently
acquired by a purchaser or lender in good faith, for value and without actual notice
that the transfer was improper, the purchaser or lender takes title to the real
property free of any claims of the decedent's estate, regardless of whether the
transfer was proper.
Mortgage payoff statements
Under current law, a secured creditor must provide a payoff statement to
certain persons, upon request. Under current law, a secured creditor may not qualify
a payoff amount or state that the payoff amount is subject to change before the payoff
date. Under the bill, a secured creditor may qualify a payoff amount, state that the
payoff amount is not practicably determinable, or state that the payoff amount is
subject to change before the payoff date if the security instrument secures
nonresidential real property and the payoff statement provides instructions for how
to obtain an updated payoff amount at no charge.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB507,1 1Section 1. 705.15 (1) of the statutes is renumbered 705.15 (1m) (intro.) and
2amended to read:
SB507,3,5
1705.15 (1m) (intro.) An interest in real property that is solely owned, owned
2by spouses as survivorship marital property, or owned by 2 or more persons as joint
3tenants
Any of the following interests in real property may be transferred without
4probate to a designated TOD beneficiary as provided in this section on the death of
5the sole owner or the last to die of the multiple owners.:
SB507,2 6Section 2. 705.15 (1b) of the statutes is created to read:
SB507,3,77 705.15 (1b) In this section:
SB507,3,118 (a) “Person” means an individual, corporation, business trust, estate, trust,
9partnership, limited liability company, association, joint venture, government,
10government subdivision, agency or instrumentality, public corporation, or any other
11legal or commercial entity.
SB507,3,1312 (b) “Sole owner” means the owner of an interest in real property described in
13sub. (1m) (a) to (c).
SB507,3,1514 (c) “TOD beneficiary” means a person designated as a beneficiary in a
15document that complies with sub. (2) (a).
SB507,3 16Section 3. 705.15 (1m) (a) to (e) of the statutes are created to read:
SB507,3,1817 705.15 (1m) (a) An interest in real property that is owned by one individual and
18is not concurrently owned by any other person.
SB507,3,2019 (b) A fractional interest in real property that is owned by an individual as a
20tenant in common.
SB507,3,2321 (c) An interest in real property that is owned by a spouse as marital property.
22This paragraph does not include an interest in real property owned as survivorship
23marital property.
SB507,3,2524 (d) An interest in real property owned by spouses as survivorship marital
25property.
SB507,4,1
1(e) An interest in real property owned by 2 or more individuals as joint tenants.
SB507,4 2Section 4. 705.15 (2) of the statutes is renumbered 705.15 (2) (a) (intro.) and
3amended to read:
SB507,4,54 705.15 (2) (a) (intro.) A TOD beneficiary may be designated on a deed document
5that evidences ownership of the property interest in includes all of the following:
SB507,4,7 61. The name of the owner or owners of the interest in real property that will be
7transferred.
SB507,4,17 8(b) The designation of a TOD beneficiary may be made by including use of the
9words “transfer on death" or “pay on death," or the abbreviation “ TOD" or “POD,"
10after the name of the owner or owners of the property and before the name of the TOD
11beneficiary or beneficiaries. The owner or owners may designate one or more persons
12as a primary TOD beneficiary and may designate one or more persons as a contingent
13TOD beneficiary if a primary TOD beneficiary does not survive the sole owner or the
14last to die of multiple owners.
The designation may be included on the original deed
15document that passes the property interest to the owner or owners or may be made
16at a later time by the sole owner or all then surviving owners by executing and
17recording another deed document that designates a TOD beneficiary.
SB507,4,22 18(c) A TOD beneficiary designation is not effective unless the deed document on
19which the designation is made is recorded, and any fees required to record the
20document, are submitted for recording to the register of deeds office of the county in
21which the real property is located before the death of the sole owner or the last to die
22of multiple owners
.
SB507,5 23Section 5. 705.15 (2) (a) 2., 3. and 4. of the statutes are created to read:
SB507,4,2424 705.15 (2) (a) 2. The name of the designated TOD beneficiary.
SB507,4,2525 3. That the transfer is effective only upon the death of the owner or owners.
SB507,5,3
14. If the interest that will be transferred is an interest in real property owned
2by a spouse as marital property, the signatures of both spouses who have an interest
3in the marital property.
SB507,6 4Section 6. 705.15 (3) of the statutes is amended to read:
SB507,5,135 705.15 (3) The designation of a TOD beneficiary on a deed document does not
6affect ownership of the property until the owner's death of the sole owner or the last
7to die of multiple owners regardless of whether the document provides otherwise
.
8The designation may be canceled or changed at any time by the sole owner or all then
9surviving owners, without the consent of the TOD beneficiary, by executing and
10recording another deed document that designates a different TOD beneficiary or no
11beneficiary. The recording of a deed document that designates a TOD beneficiary or
12no beneficiary revokes any designation made in a previously recorded deed document
13relating to the same property interest.
SB507,7 14Section 7. 705.15 (4) of the statutes is amended to read:
SB507,5,2215 705.15 (4) On the death of the sole owner or the last to die of multiple owners,
16ownership of the interest in the real property passes, subject to any lien or other
17encumbrance against the real property, to the designated TOD beneficiary or
18beneficiaries who survive all owners and to any predeceased beneficiary's issue who
19would take under s. 854.06 (3). If no TOD beneficiary or predeceased TOD
20beneficiary's issue who would take under s. 854.06 (3) survives the death of all
21owners, the interest in the real property passes to the estate of the deceased sole
22owner or the estate of the last to die of the multiple owners.
SB507,8 23Section 8. 705.15 (7) of the statutes is created to read:
SB507,6,3
1705.15 (7) The capacity required to designate a TOD beneficiary or to revoke
2a designation of a TOD beneficiary is the same as the capacity to make or revoke a
3will under s. 853.01.
SB507,9 4Section 9. 705.15 (8) of the statutes is created to read:
SB507,6,115 705.15 (8) Unless previously adjudicated in a formal testacy proceeding or
6otherwise barred, the claim of any claimant to recover real property transferred to
7a TOD beneficiary under this section is barred unless, by no later than 120 days after
8the death of the sole owner or the last to die of multiple owners, a complaint is filed
9in an action in which the relief demanded may confirm or change interests in the real
10property transferred under this section and a lis pendens is filed or recorded in each
11county where any part of the real property is located.
SB507,10 12Section 10. 708.15 (3) (d) (intro.) of the statutes is amended to read:
SB507,6,1413 708.15 (3) (d) (intro.) A Except as provided in par. (f) 2., a payoff statement
14must shall contain all of the following:
SB507,11 15Section 11. 708.15 (3) (f) of the statutes is renumbered 708.15 (3) (f) 1. and
16amended to read:
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