An individual who is the sole owner of a vessel or multiple individuals who co–own a vessel as joint tenants with right of survivorship or tenants by the entirety may apply to the Department to designate a beneficiary to take ownership of the vessel on the death of the sole owner or the last surviving co–owner. The designation of a beneficiary may be shown by the words “transfer–on–death” or the abbreviation “TOD” after the name of the registered owner on a certificate of title. The designation of a beneficiary for a vessel does not affect the ownership of the vessel until the death of the sole owner or the last surviving co–owner of the vessel. The designation of a beneficiary may be revoked or changed at any time before the death of the sole owner or the last surviving co–owner without the consent of the beneficiary by applying to the Department. The designation of a beneficiary is not required to be supported by consideration and the certificate of title of the vessel for which the designation is made is not required to be delivered to the beneficiary in order for the designation to be effective. On the death of the sole owner or the last surviving co–owner of a vessel who has designated a beneficiary, ownership of the vessel shall pass to the beneficiary if the beneficiary survives the sole owner or the last surviving co–owner. A designated beneficiary who survives the sole owner or the last surviving co–owner shall apply to the Department for a new certificate of title for the vessel. An application for a certificate of title by a beneficiary following the death of the sole owner or last surviving co–owner shall include: The original certificate of title designating the beneficiary; A death certificate for the deceased sole owner or each deceased co–owner; Proof of the identity of the beneficiary; and Any applicable taxes or fees. If a designated beneficiary does not survive the death of the sole owner or last surviving co–owner, the vessel is part of the estate of the deceased sole owner or last surviving co–owner. This section does not limit the rights of creditors of vessel owners against beneficiaries and other transferees under other laws of the State. The Department may charge a fee, not to exceed its costs, for issuing a certificate of title under this section. The Department may adopt regulations to carry out this section.