Committee hears bill to let Alaskans register vehicles and boats to transfer outside probate

Juneau, March 20, 2025 — State Sen. Scott Kawasaki on Thursday presented Senate Bill 104 to the Senate Transportation Committee, proposing a DMV-administered transfer-on-death (TOD) title for vehicles, boats and similar titled property to reduce probate time and cost for Alaskans.

Kawasaki said probate in Alaska can take "anywhere from six months to several years" and can impose thousands to tens of thousands of dollars in fees on survivors. "At no cost to the state, Senate Bill 104 will allow countless Alaskans to pass down boats, vehicles, and some manufactured homes to beneficiaries with more ease," Kawasaki told the committee.

Why it matters: Witnesses said vehicles often become immobilized while probate is pending, creating hardship for surviving family members who rely on those vehicles. Abigail O'Connor, an estate planning attorney, said the bill would let a designated beneficiary obtain immediate ownership after a death certificate is produced so families would not have to park cars for months while probate proceeds.

Testimony and clarifications: Abigail O'Connor, an Anchorage estate-planning attorney and chief fiduciary officer of Puget Trust Company, told the committee the proposal will reduce practical and legal difficulties after an owner's death. "As soon as there was a death certificate, the designated beneficiary go to the DMV and get immediate ownership," O'Connor said. She also explained that, under Alaska law, a beneficiary may disclaim a gift and that the bill's definition of "person" includes a trust, meaning a trust can be named as the designated beneficiary.

Insurance agent Linda Hulbert of New York Life said the TOD option is revocable and flexible, which she said is important because owners change their minds. "This is a very useful opportunity for people who want to plan," Hulbert testified.

Committee questions covered practical details: Senator Tobin asked whether slip fees or other encumbrances attached to boats would transfer with a TOD title; Jenna Calhoun, staff to the sponsor, answered that encumbrances and liens would transfer with the title to the new beneficiary. Senator Kiel asked whether a beneficiary who disclaims the interest would avoid liabilities and fees; witnesses confirmed disclaimers operate under Alaska law and would treat the interest as if the beneficiary predeceased the owner.

Legal and technical points: O'Connor told the committee she generally advises clients not to title vehicles in the name of a trust for liability reasons, but that the bill as written would allow a trust to be designated as a beneficiary. On the bill language that makes a TOD title "effective without consideration," O'Connor said she saw no legal problem in ordinary transactions and did not expect the clause to invalidate common private arrangements.

Formal committee action: The committee set the bill aside at the conclusion of testimony; no final committee vote was recorded. The sponsor and staff agreed to follow up with additional research on specific technical questions raised by members.

Ending: Sponsor Senator Kawasaki and staff indicated they will provide follow-up answers to committee questions and return the bill for further consideration.