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Panel approves 'transfer on death' auto‑title bill with notary and recording amendments

2135806 · January 21, 2025
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Summary

The Judiciary Committee approved Senate File 39, creating a beneficiary designation form to transfer an automobile title on death without probate. The committee adopted amendments requiring notarized owner signatures and recording the beneficiary form in the county where the vehicle is titled, and asked staff to draft lender‑protection language.

Senate File 39, a bill to allow vehicle owners to name a beneficiary who can receive title on the owner’s death without formal probate, was advanced by the Senate Judiciary Committee after sponsor presentation, county clerk and bank testimony, and several adopted amendments.

Senator Olson (sponsor) and Senator Crago presented the bill as modeled on Colorado law and patterned after Wyoming’s existing transfer‑on‑death deed statute. The proposal would create a new statute allowing owners to execute a beneficiary designation form (to be provided by the Wyoming Department of Transportation) that would enable a beneficiary to present a recorded, notarized form and a death certificate to the county clerk and obtain a certificate of title in the beneficiary’s name, subject to existing liens and security interests.

County clerks and banking representatives testified on operational details and lender protections. Mary Langford, representing Wyoming county clerks, recommended that the beneficiary form be notarized and recorded so clerks can determine the correct, most recently dated instrument and avoid disputes when multiple forms exist. Langford noted cross‑jurisdiction complications if a title or lien is filed in another county or state. Scott Meyer of the Wyoming Bankers Association urged additional safeguards for lienholders and suggested including short‑term insurance language to protect lenders and beneficiaries during the transfer period; he told the committee, "I think that that form needs to be notarized. That way we know the order of what has priority, with respect to any other forms out there." He also proposed recorded notice to lienholders.

Committee amendments adopted during debate include insertion of a requirement that the beneficiary designation carry a notarized owner signature and a requirement that the form be recorded in the county where the vehicle is titled. The committee also authorized staff to draft conceptual amendments (proposed by bankers) addressing liens, insurance coverage and notice to lienholders; members asked staff and sponsors to work out precise placement and statutory cross‑references before committee of the whole.

Sponsor remarks emphasized that the form does not change ownership during the owner’s lifetime and that the transfer remains subject to existing liens: "the transfer of the title is subject to any liens and security interests," the sponsor said while presenting the draft statutory language. The bill would also give the Department of Transportation rule‑making authority and set an effective date of July 1, 2025.

Following debate and amendment, the committee voted to report the bill: Senator Crago — Aye; Senator Krum — Aye; Senator Hicks — Aye (absentee); Senator Kolb — Excused; Chairman Olson — Aye (clerk recorded "4 ayes, 1 excused"). Members instructed sponsors and staff to prepare the conceptual amendments addressing lender protections and insurance for committee of the whole.