Bill Text: MN SF84 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Nonprobate transfers on death multiparty accounts provisions modification
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-18 - HF substituted on General Orders HF19 [SF84 Detail]
Download: Minnesota-2013-SF84-Engrossed.html
1.2relating to probate; multiparty accounts; allowing agency designations in
1.3certain situations;amending Minnesota Statutes 2012, sections 524.6-201, by
1.4adding a subdivision; 524.6-203; 524.6-204; 524.6-211; 524.6-213, by adding
1.5subdivisions; proposing coding for new law in Minnesota Statutes, chapter 524.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 524.6-201, is amended by adding a
1.8subdivision to read:
1.9 Subd. 2a. Agent. "Agent" means a person authorized to make account transactions
1.10for a party.
1.11 Sec. 2. Minnesota Statutes 2012, section 524.6-203, is amended to read:
1.12524.6-203 OWNERSHIP DURING LIFETIME.
1.13(a) A joint account belongs, during the lifetime of all parties, to the parties in
1.14proportion to the net contributions by each to the sums on deposit, unless there is clear and
1.15convincing evidence of a different intent.
1.16(b) A P.O.D. account belongs to the original purchasing or depositing party during
1.17the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named
1.18as original parties, during their lifetimes, rights as between them are governed byclause
1.19 paragraph (a).
1.20(c) An agent in an account with an agency designation has no beneficial right to
1.21sums on deposit by virtue of being named as an agent.
1.22 Sec. 3. [524.6-2031] DESIGNATION OF AGENT.
2.1(a) By a writing signed by all parties, the parties may designate, as an agent of all
2.2parties on an account, a person other than a party.
2.3(b) Unless the terms of an agency designation provide that the authority of the agent
2.4terminates on disability or incapacity of a party, the agent's authority survives disability
2.5and incapacity. The agent may act for a party until the authority of the agent is terminated
2.6by the party, an attorney-in-fact is appointed by the party, or a conservator is appointed
2.7to protect the interests of a party.
2.8(c) Death of the sole party or last surviving party terminates the authority of an agent.
2.9(d) Except as otherwise provided for in section 524.6-211, a financial institution is
2.10not liable for account transactions performed at the direction of, or authorized by, an agent
2.11under an agency designation for an account if:
2.12(1) the financial institution has no actual notice of the termination of the agent's
2.13authority before the transaction;
2.14(2) the financial institution has no actual knowledge of the death of the sole party
2.15or last surviving party; or
2.16(3) the agent's authority does not survive the disability or incapacity of all of the
2.17parties and the financial institution has not received actual notice of the disability or
2.18incapacity.
2.19 Sec. 4. Minnesota Statutes 2012, section 524.6-204, is amended to read:
2.20524.6-204 RIGHT OF SURVIVORSHIP.
2.21(a) Sums remaining on deposit at the death of a party to a joint account belong to the
2.22surviving party or parties as against the estate of the decedent unless: (1) there is clear and
2.23convincing evidence of a different intention,; or (2) there is a different disposition made
2.24by a valid willas herein provided, specifically referring to such account, as provided in
2.25this section. If there are two or more surviving parties, their respective ownerships during
2.26lifetime shall be in proportion to their previous ownership interests under section524.6-203
2.27augmented by an equal share for each survivor of any interest the decedent may have owned
2.28in the account immediately before death; and the right of survivorship continues between
2.29the surviving parties. The interest so determined is also the interest disposable by will.
2.30(b) If the account is a P.O.D. account, on the death of the original party or of the
2.31survivor of two or more original parties, any sums remaining on deposit belong to the
2.32P.O.D. payees if surviving, or to the survivor of them if one or more die before the
2.33surviving original party; if two or more P.O.D. payees survive, there is no right of
2.34survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account
2.35or deposit agreement expressly provide for survivorship between them.
3.1(c) In other cases, the death of any party to a multiple-party account has no effect
3.2on beneficial ownership of the account other than to transfer the rights of the decedent
3.3as part of the estate.
3.4(d) A right of survivorship arising from the express terms of the account, or under
3.5this section, or under a P.O.D. payee designation, may be changed by specific reference by
3.6will, but the terms of such will shall not be binding upon any financial institution unless
3.7it has been given a notice in writing of a claim thereunder, in which event the deposit
3.8shall remain undisbursed until an order has been made by the probate court adjudicating
3.9the decedent's interest disposable by will.
3.10 Sec. 5. Minnesota Statutes 2012, section 524.6-211, is amended to read:
3.11524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.
3.12Payment made pursuant to sections524.6-208 to
524.6-210 discharges the financial
3.13institution from all claims for amounts so paid whether or not the payment is consistent
3.14with the beneficial ownership of the account as between parties, P.O.D. payees, or
3.15beneficiaries by will or otherwise, or their successors. The protection here given does not
3.16extend to payments made after a financial institution has received written notice from
3.17any person entitled to request payment to the effect that withdrawals in accordance with
3.18the terms of the account, including one having an agency designation, should not be
3.19permitted, and the financial institution has had a reasonable opportunity to act on it when
3.20the payment is made. Unless the notice is withdrawn by the person giving it, the successor
3.21of any deceased party and all other parties entitled to payment must concur in any demand
3.22for withdrawal if the financial institution is to be protected under this section. No other
3.23notice or any other information shown to have been available to a financial institution shall
3.24affect its right to the protection provided here. A financial institution that receives written
3.25notice pursuant to this section or otherwise has reason to believe that a dispute exists as to
3.26the rights of the parties may refuse, without liability, to make payments in accordance with
3.27the terms of the account. The protection here provided shall not affect the rights of parties
3.28in disputes between themselves or their successors concerning the beneficial ownership
3.29of funds in, or withdrawn from, multiple-party accounts.
3.30 Sec. 6. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
3.31subdivision to read:
3.32 Subd. 3. Contract of deposit; sample form. A contract of deposit that contains
3.33provisions in substantially the following form establishes the type of account provided, and
3.34the account is governed by the provisions of this part applicable to an account of that type:
5.1 Sec. 7. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
5.2subdivision to read:
5.3 Subd. 4. Contract of deposit; generally. A contract of deposit that does not
5.4contain provisions in substantially the form provided in subdivision 3 is governed by
5.5the provisions of this part applicable to the type of account that most nearly conforms
5.6to the depositor's intent.
1.3certain situations;amending Minnesota Statutes 2012, sections 524.6-201, by
1.4adding a subdivision; 524.6-203; 524.6-204; 524.6-211; 524.6-213, by adding
1.5subdivisions; proposing coding for new law in Minnesota Statutes, chapter 524.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 524.6-201, is amended by adding a
1.8subdivision to read:
1.9 Subd. 2a. Agent. "Agent" means a person authorized to make account transactions
1.10for a party.
1.11 Sec. 2. Minnesota Statutes 2012, section 524.6-203, is amended to read:
1.12524.6-203 OWNERSHIP DURING LIFETIME.
1.13(a) A joint account belongs, during the lifetime of all parties, to the parties in
1.14proportion to the net contributions by each to the sums on deposit, unless there is clear and
1.15convincing evidence of a different intent.
1.16(b) A P.O.D. account belongs to the original purchasing or depositing party during
1.17the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named
1.18as original parties, during their lifetimes, rights as between them are governed by
1.19 paragraph (a).
1.20(c) An agent in an account with an agency designation has no beneficial right to
1.21sums on deposit by virtue of being named as an agent.
1.22 Sec. 3. [524.6-2031] DESIGNATION OF AGENT.
2.1(a) By a writing signed by all parties, the parties may designate, as an agent of all
2.2parties on an account, a person other than a party.
2.3(b) Unless the terms of an agency designation provide that the authority of the agent
2.4terminates on disability or incapacity of a party, the agent's authority survives disability
2.5and incapacity. The agent may act for a party until the authority of the agent is terminated
2.6by the party, an attorney-in-fact is appointed by the party, or a conservator is appointed
2.7to protect the interests of a party.
2.8(c) Death of the sole party or last surviving party terminates the authority of an agent.
2.9(d) Except as otherwise provided for in section 524.6-211, a financial institution is
2.10not liable for account transactions performed at the direction of, or authorized by, an agent
2.11under an agency designation for an account if:
2.12(1) the financial institution has no actual notice of the termination of the agent's
2.13authority before the transaction;
2.14(2) the financial institution has no actual knowledge of the death of the sole party
2.15or last surviving party; or
2.16(3) the agent's authority does not survive the disability or incapacity of all of the
2.17parties and the financial institution has not received actual notice of the disability or
2.18incapacity.
2.19 Sec. 4. Minnesota Statutes 2012, section 524.6-204, is amended to read:
2.20524.6-204 RIGHT OF SURVIVORSHIP.
2.21(a) Sums remaining on deposit at the death of a party to a joint account belong to the
2.22surviving party or parties as against the estate of the decedent unless: (1) there is clear and
2.23convincing evidence of a different intention
2.24by a valid will
2.25this section. If there are two or more surviving parties, their respective ownerships during
2.26lifetime shall be in proportion to their previous ownership interests under section
2.27augmented by an equal share for each survivor of any interest the decedent may have owned
2.28in the account immediately before death; and the right of survivorship continues between
2.29the surviving parties. The interest so determined is also the interest disposable by will.
2.30(b) If the account is a P.O.D. account, on the death of the original party or of the
2.31survivor of two or more original parties, any sums remaining on deposit belong to the
2.32P.O.D. payees if surviving, or to the survivor of them if one or more die before the
2.33surviving original party; if two or more P.O.D. payees survive, there is no right of
2.34survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account
2.35or deposit agreement expressly provide for survivorship between them.
3.1(c) In other cases, the death of any party to a multiple-party account has no effect
3.2on beneficial ownership of the account other than to transfer the rights of the decedent
3.3as part of the estate.
3.4(d) A right of survivorship arising from the express terms of the account, or under
3.5this section, or under a P.O.D. payee designation, may be changed by specific reference by
3.6will, but the terms of such will shall not be binding upon any financial institution unless
3.7it has been given a notice in writing of a claim thereunder, in which event the deposit
3.8shall remain undisbursed until an order has been made by the probate court adjudicating
3.9the decedent's interest disposable by will.
3.10 Sec. 5. Minnesota Statutes 2012, section 524.6-211, is amended to read:
3.11524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.
3.12Payment made pursuant to sections
3.13institution from all claims for amounts so paid whether or not the payment is consistent
3.14with the beneficial ownership of the account as between parties, P.O.D. payees, or
3.15beneficiaries by will or otherwise, or their successors. The protection here given does not
3.16extend to payments made after a financial institution has received written notice from
3.17any person entitled to request payment to the effect that withdrawals in accordance with
3.18the terms of the account, including one having an agency designation, should not be
3.19permitted, and the financial institution has had a reasonable opportunity to act on it when
3.20the payment is made. Unless the notice is withdrawn by the person giving it, the successor
3.21of any deceased party and all other parties entitled to payment must concur in any demand
3.22for withdrawal if the financial institution is to be protected under this section. No other
3.23notice or any other information shown to have been available to a financial institution shall
3.24affect its right to the protection provided here. A financial institution that receives written
3.25notice pursuant to this section or otherwise has reason to believe that a dispute exists as to
3.26the rights of the parties may refuse, without liability, to make payments in accordance with
3.27the terms of the account. The protection here provided shall not affect the rights of parties
3.28in disputes between themselves or their successors concerning the beneficial ownership
3.29of funds in, or withdrawn from, multiple-party accounts.
3.30 Sec. 6. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
3.31subdivision to read:
3.32 Subd. 3. Contract of deposit; sample form. A contract of deposit that contains
3.33provisions in substantially the following form establishes the type of account provided, and
3.34the account is governed by the provisions of this part applicable to an account of that type:
5.1 Sec. 7. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
5.2subdivision to read:
5.3 Subd. 4. Contract of deposit; generally. A contract of deposit that does not
5.4contain provisions in substantially the form provided in subdivision 3 is governed by
5.5the provisions of this part applicable to the type of account that most nearly conforms
5.6to the depositor's intent.
