Bulletin: ME2022001

Dear Associates:

The Uniform Real Property Transfer on Death Act codified at Title 18-C, Article 6, Part 4 became effective on September 1, 2019. With the passing of time and the death of transferors (“Transferor”) we are starting to see a rise in transfers from the beneficiaries (“Designated Beneficiary”) of these Transfer on Death Deeds (“TODD”). Below is a list of reminders of the requirements necessary to insure a transaction involving the sale from a Designated Beneficiary:

• Title must be reviewed to determine whether the Transferor made any attempts to revoke the TODD or transfer the property to a third party.
• A review of the TODD vesting title includes all the elements required to effect a transfer on death, as set forth in the Uniform Real Property Transfer on Death Act, Title 18-C, Article 6, Part 4.
• The TODD was recorded during the life of the Transferor.
• The Transferor died on or after September 1, 2019.
• Receipt of satisfactory proof of the death of the Transferor (i.e., a death certificate).
• Review of the probated will of the Transferor, if any, reveals no attempt to devise the property to a devisee other than the Designated Beneficiary.
• The Designated Beneficiary must execute and record a Notice of Death Affidavit which complies with 18-C MRS §6-414.

ADDITIONAL REQUIRMENTS

• Exception must be taken for all matters of record arising prior to and subsequent to the recording of the TODD, including mortgages, liens, and other encumbrances (i.e., easements, rights of first refusal). In order to insure without exception for mortgages, liens or other encumbrances, the mortgages, liens, or other encumbrances must be satisfied, or otherwise addressed, and properly released of record.
• If your transaction is within 10 years of the date of death of the Transferor, exception must be taken for all federal estate taxes of the deceased Transferor, unless satisfactory proof of payment is received, or your investigation determines that no federal estate tax is due from the estate of the Transferor.
• If your transaction is within 10 years of the date of death of the Transferor, exception must be taken for all Maine estate taxes of the deceased Transferor, unless the lien has been discharged by a certificate from the State Tax Assessor recorded in the registry of deeds.
• If your transaction is within one year of the date of death of the Transferor, exception must be taken for claims of creditors against the deceased Transferor’s probate estate. Note: The one-year limitation on creditor’s claims may be extended if a probate has been opened for the Transferor, a creditor’s claim has been disallowed, and the creditor has appealed the disallowance of the claim. If the creditor’s claim is allowed following such appeal, the creditor may commence a proceeding against the Designated Beneficiary of a TODD within 60 days after the final allowance of the claim.
• If your transaction is within one year of the date of death of the Transferor, exception must be taken for claims by the surviving spouse and children of the deceased Transferor for statutory allowances. This exception may be removed within the one-year period if you obtain a satisfactory waiver and release of the statutory allowances executed by the spouse and children of the Transferor. Reliable evidence of the identity of the spouse and children must be obtained (i.e., affidavit from a person with sufficient knowledge).

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