Sec. 15. (a) Before the death of the owner, a
beneficiary has no rights in the
property because of the beneficiary designation. The signature or agreement of the beneficiary is not required for any transaction relating to property transferred under this chapter. If a lienholder takes action to enforce a
lien, by
foreclosure or otherwise through a court proceeding, it is not necessary to join the beneficiary as a party
defendant in the action unless the beneficiary has another interest in the
real property that has vested.
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Terms Used In Indiana Code 32-17-14-15
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- Right of survivorship: The ownership rights that result in the acquisition of title to property by reason of having survived other co-owners.
(c) On the death of a tenant by the entireties, property with respect to which a beneficiary designation has been made belongs to the surviving tenant.
(d) On the death of the owner, property with respect to which a beneficiary designation has been made passes by operation of law to the beneficiary.
(e) If two (2) or more beneficiaries survive, there is no right of survivorship among the beneficiaries when the death of a beneficiary occurs after the death of the owner unless the beneficiary designation expressly provides for survivorship among the beneficiaries. Except as expressly provided otherwise, the surviving beneficiaries hold their separate interest in the property as tenants in common. The share of any beneficiary who dies after the owner dies belongs to the deceased beneficiary’s estate.
(f) If no beneficiary survives the owner, the property belongs to the estate of the owner unless the beneficiary designation directs the transfer to a substitute beneficiary in the manner required by section 22 of this chapter.
As added by P.L.143-2009, SEC.41.
