5302.23 Designating transfer on death beneficiary.

(A) Any deed containing language that shows a clear intent to designate a transfer on death beneficiary shall be liberally construed to do so.

(B) Real property or an interest in real property that is subject to a transfer on death beneficiary designation as provided in section 5302.22 of the Revised Code or as described in division (A) of this section has all of the following characteristics and ramifications:

(1) An interest of a deceased owner shall be transferred to the transfer on death beneficiaries who are identified in the deed by name and who survive the deceased owner or that are in existence on the date of the deceased owner’s death. If there is a designation of more than one transfer on death beneficiary, the beneficiaries shall take title in the interest in equal shares as tenants in common. If a transfer on death beneficiary does not survive the deceased owner or is not in existence on the date of the deceased owner’s death, and the deceased owner has designated one or more persons as contingent transfer on death beneficiaries as provided in division (B)(2) of this section, the designated contingent transfer on death beneficiaries shall take the same interest that would have passed to the transfer on death beneficiary had that transfer on death beneficiary survived the deceased owner or been in existence on the date of the deceased owner’s death. If none of the designated transfer on death beneficiaries survives the deceased owner or is in existence on the date of the deceased owner’s death and no contingent transfer on death beneficiaries have been designated or have survived the deceased owner, the interest of the deceased owner shall be distributed as part of the probate estate of the deceased owner of the interest.

(2) A transfer on death deed may contain a designation of one or more persons as contingent transfer on death beneficiaries, who shall take the interest of the deceased owner that would otherwise have passed to the designated transfer on death beneficiary if that named designated transfer on death beneficiary does not survive the deceased owner or is not in existence on the date of death of the deceased owner. Persons designated as contingent transfer on death beneficiaries shall be identified in the deed by name.

(3) The designation of a transfer on death beneficiary has no effect on the present ownership of real property, and a person designated as a transfer on death beneficiary has no interest in the real property until the death of the owner of the interest.

(4) The designation in a deed of any transfer on death beneficiary may be revoked or changed at any time, without the consent of that designated transfer on death beneficiary, by the owner of the interest by executing in accordance with Chapter 5301. of the Revised Code and recording a deed conveying the grantor’s entire, separate interest in the real property to one or more persons, including the grantor, with or without the designation of another transfer on death beneficiary.

(5) A fee simple title or any fractional interest in a fee simple title may be subjected to a transfer on death beneficiary designation.

(6) A designated transfer on death beneficiary takes only the interest that the deceased owner or owners held on the date of death, subject to all encumbrances, reservations, and exceptions.

(7) No rights of any lienholder, including, but not limited to, any mortgagee, judgment creditor, or mechanic’s lien holder, shall be affected by the designation of a transfer on death beneficiary pursuant to this section and section 5302.22 of the Revised Code. If any lienholder takes action to enforce the lien, by foreclosure or otherwise through a court proceeding, it is not necessary to join the transfer on death beneficiary as a party defendant in the action unless the transfer on death beneficiary has another interest in the real property that is currently vested.

(8) Any transfer on death of real property or of an interest in real property that results from a deed designating a transfer on death beneficiary is not testamentary.

Effective Date: 08-29-2000