Bill Text: MN HF19 | 2013-2014 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Agency designations allowed in certain civil law situations, form language provided, clarifying changes made, and Tax Court appeals filing requirements clarified.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-03 - Secretary of State Chapter 36 05/01/13 [HF19 Detail]
Download: Minnesota-2013-HF19-Engrossed.html
Bill Title: Agency designations allowed in certain civil law situations, form language provided, clarifying changes made, and Tax Court appeals filing requirements clarified.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-03 - Secretary of State Chapter 36 05/01/13 [HF19 Detail]
Download: Minnesota-2013-HF19-Engrossed.html
1.2relating to accounts; allowing agency designations in certain situations; providing
1.3form language; making clarifying changes;amending Minnesota Statutes
1.42012, sections 524.6-201, subdivision 7, by adding a subdivision; 524.6-203;
1.5524.6-204; 524.6-211; 524.6-213, by adding subdivisions; proposing coding for
1.6new law in Minnesota Statutes, chapter 524.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 524.6-201, is amended by adding a
1.9subdivision to read:
1.10 Subd. 2a. Agent. "Agent" means a person authorized to make account transactions
1.11for a party.
1.12 Sec. 2. Minnesota Statutes 2012, section 524.6-201, subdivision 7, is amended to read:
1.13 Subd. 7. Party. "Party" means a person who, by the terms of the account, has a
1.14present right, subject to request, to payment from a multiple-party account other than as an
1.15agent. A P.O.D. payee is a party only after the account becomes payable by reason of the
1.16payee surviving the original party. Unless the context otherwise requires, it includes a
1.17guardian, conservator, personal representative, or assignee, including an attaching creditor,
1.18of a party. It also includes a person identified as a trustee of an account for another whether
1.19or not a beneficiary is named, but it does not include any named beneficiary unless the
1.20beneficiary has a present right of withdrawal.
1.21 Sec. 3. Minnesota Statutes 2012, section 524.6-203, is amended to read:
1.22524.6-203 OWNERSHIP DURING LIFETIME.
2.1(a) A joint account belongs, during the lifetime of all parties, to the parties in
2.2proportion to the net contributions by each to the sums on deposit, unless there is clear and
2.3convincing evidence of a different intent.
2.4(b) A P.O.D. account belongs to the original purchasing or depositing party during
2.5the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named
2.6as original parties, during their lifetimes, rights as between them are governed byclause
2.7 paragraph (a).
2.8(c) An agent in an account with an agency designation has no beneficial right to
2.9sums on deposit by virtue of being named as an agent.
2.10 Sec. 4. [524.6-215] DESIGNATION OF AGENT.
2.11(a) By a writing signed by all parties, or by less than all of the parties if the contract
2.12of deposit expressly so provides, the parties may designate, as an agent of all parties
2.13on an account, a person other than a party.
2.14(b) Unless the terms of an agency designation provide that the authority of the agent
2.15terminates on disability or incapacity of a party, the agent's authority survives disability
2.16and incapacity. The agent may act for a party until the authority of the agent is terminated
2.17by the party, by an attorney-in-fact appointed by the party, or by a conservator appointed
2.18to protect the interests of the party.
2.19(c) Death of the sole party or last surviving party terminates the authority of an agent.
2.20(d) Except as otherwise provided for in section 524.6-211, a financial institution is
2.21not liable for account transactions performed at the direction of, or authorized by, an agent
2.22under an agency designation for an account if:
2.23(1) the financial institution has no actual notice of the determination of the agent's
2.24authority prior to the transaction;
2.25(2) the financial institution has no actual knowledge of the death of the sole party
2.26or last surviving party; or
2.27(3) the agent's authority does not survive the disability or incapacity of all the parties,
2.28and the financial institution has not received actual notice of such disability or incapacity.
2.29 Sec. 5. [524.6-216] TYPES OF ACCOUNT; EXISTING ACCOUNTS.
2.30(a) An account may be for a single party or multiple parties. A multiple-party
2.31account may be with or without a right of survivorship between the parties. Subject to
2.32section 524.6-204, either a single-party account or a multiple-party account may have a
2.33P.O.D. designation, an agency designation, or both.
3.1(b) An account established before, on or after August 1, 2013, whether in the form
3.2prescribed in section 524.6-213 or in any other form acceptable to the financial institution,
3.3is either a single-party account or a multiple-party account, with or without right of
3.4survivorship, and with or without a P.O.D. designation or an agency designation within the
3.5meaning of this chapter, and is governed by this chapter.
3.6(c) An agency designation created on or after August 1, 2013, is governed by this
3.7chapter.
3.8 Sec. 6. Minnesota Statutes 2012, section 524.6-204, is amended to read:
3.9524.6-204 RIGHT OF SURVIVORSHIP.
3.10(a) Sums remaining on deposit at the death of a party to a joint account belong to the
3.11surviving party or parties as against the estate of the decedent unless: (1) there is clear and
3.12convincing evidence of a different intention,; or (2) there is a different disposition made by
3.13a valid willas herein provided, specifically referring to such account, as herein provided.
3.14If there are two or more surviving parties, their respective ownerships during lifetime shall
3.15be in proportion to their previous ownership interests under section524.6-203 augmented
3.16by an equal share for each survivor of any interest the decedent may have owned in the
3.17account immediately before death; and the right of survivorship continues between the
3.18surviving parties. The interest so determined is also the interest disposable by will.
3.19(b) If the account is a P.O.D. account, on the death of the original party or of the
3.20survivor of two or more original parties, any sums remaining on deposit belong to the
3.21P.O.D. payees if surviving, or to the survivor of them if one or more die before the
3.22surviving original party; if two or more P.O.D. payees survive, there is no right of
3.23survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account
3.24or deposit agreement expressly provide for survivorship between them.
3.25(c) In other cases, the death of any party to a multiple-party account has no effect
3.26on beneficial ownership of the account other than to transfer the rights of the decedent
3.27as part of the estate.
3.28(d) A right of survivorship arising from the express terms of the account, or under
3.29this section, or under a P.O.D. payee designation, may be changed by specific reference by
3.30will, but the terms of such will shall not be binding upon any financial institution unless
3.31it has been given a notice in writing of a claim thereunder, in which event the deposit
3.32shall remain undisbursed until an order has been made by the probate court adjudicating
3.33the decedent's interest disposable by will.
4.1 Sec. 7. Minnesota Statutes 2012, section 524.6-211, is amended to read:
4.2524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.
4.3Payment made pursuant to sections524.6-208 to
524.6-210 discharges the financial
4.4institution from all claims for amounts so paid whether or not the payment is consistent
4.5with the beneficial ownership of the account as between parties, P.O.D. payees, or
4.6beneficiaries by will or otherwise, or their successors. The protection here given does not
4.7extend to payments made after a financial institution has received written notice from
4.8any person entitled to request payment to the effect that withdrawals in accordance with
4.9the terms of the account, including one having an agency designation, should not be
4.10permitted, and the financial institution has had a reasonable opportunity to act on it when
4.11the payment is made. Unless the notice is withdrawn by the person giving it, the successor
4.12of any deceased party and all other parties entitled to payment must concur in any demand
4.13for withdrawal if the financial institution is to be protected under this section. No other
4.14notice or any other information shown to have been available to a financial institution shall
4.15affect its right to the protection provided here. A financial institution that receives written
4.16notice pursuant to this section, or that otherwise has reason to believe that a dispute exists
4.17as to the rights of the parties may refuse, without liability, to make payment in accordance
4.18with the terms of the account. The protection here provided shall not affect the rights
4.19of parties in disputes between themselves or their successors concerning the beneficial
4.20ownership of funds in, or withdrawn from, multiple-party accounts.
4.21 Sec. 8. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
4.22subdivision to read:
4.23 Subd. 3. Contract of deposit; sample form. A contract of deposit that contains
4.24provisions in substantially the following form establishes the type of account provided, and
4.25the account is governed by the provisions of this part applicable to an account of that type:
5.30 Sec. 9. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
5.31subdivision to read:
5.32 Subd. 4. Contract of deposit; generally. A contract of deposit that does not
5.33contain provisions in substantially the form provided in subdivision 3 is governed by
5.34the provisions of this part applicable to the type of account that most nearly conforms
5.35to the depositor's intent.
1.3form language; making clarifying changes;amending Minnesota Statutes
1.42012, sections 524.6-201, subdivision 7, by adding a subdivision; 524.6-203;
1.5524.6-204; 524.6-211; 524.6-213, by adding subdivisions; proposing coding for
1.6new law in Minnesota Statutes, chapter 524.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 524.6-201, is amended by adding a
1.9subdivision to read:
1.10 Subd. 2a. Agent. "Agent" means a person authorized to make account transactions
1.11for a party.
1.12 Sec. 2. Minnesota Statutes 2012, section 524.6-201, subdivision 7, is amended to read:
1.13 Subd. 7. Party. "Party" means a person who, by the terms of the account, has a
1.14present right, subject to request, to payment from a multiple-party account other than as an
1.15agent. A P.O.D. payee is a party only after the account becomes payable by reason of the
1.16payee surviving the original party. Unless the context otherwise requires, it includes a
1.17guardian, conservator, personal representative, or assignee, including an attaching creditor,
1.18of a party. It also includes a person identified as a trustee of an account for another whether
1.19or not a beneficiary is named, but it does not include any named beneficiary unless the
1.20beneficiary has a present right of withdrawal.
1.21 Sec. 3. Minnesota Statutes 2012, section 524.6-203, is amended to read:
1.22524.6-203 OWNERSHIP DURING LIFETIME.
2.1(a) A joint account belongs, during the lifetime of all parties, to the parties in
2.2proportion to the net contributions by each to the sums on deposit, unless there is clear and
2.3convincing evidence of a different intent.
2.4(b) A P.O.D. account belongs to the original purchasing or depositing party during
2.5the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named
2.6as original parties, during their lifetimes, rights as between them are governed by
2.7 paragraph (a).
2.8(c) An agent in an account with an agency designation has no beneficial right to
2.9sums on deposit by virtue of being named as an agent.
2.10 Sec. 4. [524.6-215] DESIGNATION OF AGENT.
2.11(a) By a writing signed by all parties, or by less than all of the parties if the contract
2.12of deposit expressly so provides, the parties may designate, as an agent of all parties
2.13on an account, a person other than a party.
2.14(b) Unless the terms of an agency designation provide that the authority of the agent
2.15terminates on disability or incapacity of a party, the agent's authority survives disability
2.16and incapacity. The agent may act for a party until the authority of the agent is terminated
2.17by the party, by an attorney-in-fact appointed by the party, or by a conservator appointed
2.18to protect the interests of the party.
2.19(c) Death of the sole party or last surviving party terminates the authority of an agent.
2.20(d) Except as otherwise provided for in section 524.6-211, a financial institution is
2.21not liable for account transactions performed at the direction of, or authorized by, an agent
2.22under an agency designation for an account if:
2.23(1) the financial institution has no actual notice of the determination of the agent's
2.24authority prior to the transaction;
2.25(2) the financial institution has no actual knowledge of the death of the sole party
2.26or last surviving party; or
2.27(3) the agent's authority does not survive the disability or incapacity of all the parties,
2.28and the financial institution has not received actual notice of such disability or incapacity.
2.29 Sec. 5. [524.6-216] TYPES OF ACCOUNT; EXISTING ACCOUNTS.
2.30(a) An account may be for a single party or multiple parties. A multiple-party
2.31account may be with or without a right of survivorship between the parties. Subject to
2.32section 524.6-204, either a single-party account or a multiple-party account may have a
2.33P.O.D. designation, an agency designation, or both.
3.1(b) An account established before, on or after August 1, 2013, whether in the form
3.2prescribed in section 524.6-213 or in any other form acceptable to the financial institution,
3.3is either a single-party account or a multiple-party account, with or without right of
3.4survivorship, and with or without a P.O.D. designation or an agency designation within the
3.5meaning of this chapter, and is governed by this chapter.
3.6(c) An agency designation created on or after August 1, 2013, is governed by this
3.7chapter.
3.8 Sec. 6. Minnesota Statutes 2012, section 524.6-204, is amended to read:
3.9524.6-204 RIGHT OF SURVIVORSHIP.
3.10(a) Sums remaining on deposit at the death of a party to a joint account belong to the
3.11surviving party or parties as against the estate of the decedent unless: (1) there is clear and
3.12convincing evidence of a different intention
3.13a valid will
3.14If there are two or more surviving parties, their respective ownerships during lifetime shall
3.15be in proportion to their previous ownership interests under section
3.16by an equal share for each survivor of any interest the decedent may have owned in the
3.17account immediately before death; and the right of survivorship continues between the
3.18surviving parties. The interest so determined is also the interest disposable by will.
3.19(b) If the account is a P.O.D. account, on the death of the original party or of the
3.20survivor of two or more original parties, any sums remaining on deposit belong to the
3.21P.O.D. payees if surviving, or to the survivor of them if one or more die before the
3.22surviving original party; if two or more P.O.D. payees survive, there is no right of
3.23survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account
3.24or deposit agreement expressly provide for survivorship between them.
3.25(c) In other cases, the death of any party to a multiple-party account has no effect
3.26on beneficial ownership of the account other than to transfer the rights of the decedent
3.27as part of the estate.
3.28(d) A right of survivorship arising from the express terms of the account, or under
3.29this section, or under a P.O.D. payee designation, may be changed by specific reference by
3.30will, but the terms of such will shall not be binding upon any financial institution unless
3.31it has been given a notice in writing of a claim thereunder, in which event the deposit
3.32shall remain undisbursed until an order has been made by the probate court adjudicating
3.33the decedent's interest disposable by will.
4.1 Sec. 7. Minnesota Statutes 2012, section 524.6-211, is amended to read:
4.2524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.
4.3Payment made pursuant to sections
4.4institution from all claims for amounts so paid whether or not the payment is consistent
4.5with the beneficial ownership of the account as between parties, P.O.D. payees, or
4.6beneficiaries by will or otherwise, or their successors. The protection here given does not
4.7extend to payments made after a financial institution has received written notice from
4.8any person entitled to request payment to the effect that withdrawals in accordance with
4.9the terms of the account, including one having an agency designation, should not be
4.10permitted, and the financial institution has had a reasonable opportunity to act on it when
4.11the payment is made. Unless the notice is withdrawn by the person giving it, the successor
4.12of any deceased party and all other parties entitled to payment must concur in any demand
4.13for withdrawal if the financial institution is to be protected under this section. No other
4.14notice or any other information shown to have been available to a financial institution shall
4.15affect its right to the protection provided here. A financial institution that receives written
4.16notice pursuant to this section, or that otherwise has reason to believe that a dispute exists
4.17as to the rights of the parties may refuse, without liability, to make payment in accordance
4.18with the terms of the account. The protection here provided shall not affect the rights
4.19of parties in disputes between themselves or their successors concerning the beneficial
4.20ownership of funds in, or withdrawn from, multiple-party accounts.
4.21 Sec. 8. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
4.22subdivision to read:
4.23 Subd. 3. Contract of deposit; sample form. A contract of deposit that contains
4.24provisions in substantially the following form establishes the type of account provided, and
4.25the account is governed by the provisions of this part applicable to an account of that type:
5.30 Sec. 9. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
5.31subdivision to read:
5.32 Subd. 4. Contract of deposit; generally. A contract of deposit that does not
5.33contain provisions in substantially the form provided in subdivision 3 is governed by
5.34the provisions of this part applicable to the type of account that most nearly conforms
5.35to the depositor's intent.
