Bill Text: MN SF84 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.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, acting in the agent's capacity, in an account with an agency designation
1.21has no beneficial right to sums on deposit.
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 disabled or incapacitated party until the authority
2.6of the agent is terminated by the party, an attorney-in-fact is appointed by the party, or a
2.7conservator is appointed to 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) A financial institution, on request of an agent under an agency designation for an
2.10account, may pay to the agent sums on deposit in the account, whether or not a party is
2.11disabled, incapacitated, or deceased when the request is made or received, and whether or
2.12not the authority of the agent terminates on the disability or incapacity of a party.
2.13 Sec. 4. Minnesota Statutes 2012, section 524.6-204, is amended to read:
2.14524.6-204 RIGHT OF SURVIVORSHIP.
2.15(a) Sums remaining on deposit at the death of a party to a joint account belong to the
2.16surviving party or parties as against the estate of the decedent unless: (1) there is clear and
2.17convincing evidence of a different intention,; or (2) there is a different disposition made by
2.18a valid willas herein provided, specifically referring to such account, as herein provided.
2.19If there are two or more surviving parties, their respective ownerships during lifetime shall
2.20be in proportion to their previous ownership interests under section524.6-203 augmented
2.21by an equal share for each survivor of any interest the decedent may have owned in the
2.22account immediately before death; and the right of survivorship continues between the
2.23surviving parties. The interest so determined is also the interest disposable by will.
2.24(b) If the account is a P.O.D. account, on the death of the original party or of the
2.25survivor of two or more original parties, any sums remaining on deposit belong to the
2.26P.O.D. payees if surviving, or to the survivor of them if one or more die before the
2.27surviving original party; if two or more P.O.D. payees survive, there is no right of
2.28survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account
2.29or deposit agreement expressly provide for survivorship between them.
2.30(c) In other cases, the death of any party to a multiple-party account has no effect
2.31on beneficial ownership of the account other than to transfer the rights of the decedent
2.32as part of the estate.
2.33(d) A right of survivorship arising from the express terms of the account, or under
2.34this section, or under a P.O.D. payee designation, may be changed by specific reference by
2.35will, but the terms of such will shall not be binding upon any financial institution unless
3.1it has been given a notice in writing of a claim thereunder, in which event the deposit
3.2shall remain undisbursed until an order has been made by the probate court adjudicating
3.3the decedent's interest disposable by will.
3.4 Sec. 5. Minnesota Statutes 2012, section 524.6-211, is amended to read:
3.5524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.
3.6Payment made pursuant to sections524.6-208 to
524.6-210 discharges the financial
3.7institution from all claims for amounts so paid whether or not the payment is consistent
3.8with the beneficial ownership of the account as between parties, P.O.D. payees, or
3.9beneficiaries by will or otherwise, or their successors. The protection here given does not
3.10extend to payments made after a financial institution has received written notice from
3.11any person entitled to request payment to the effect that withdrawals in accordance with
3.12the terms of the account, including one having an agency designation, should not be
3.13permitted, and the financial institution has had a reasonable opportunity to act on it when
3.14the payment is made. Unless the notice is withdrawn by the person giving it, the successor
3.15of any deceased party and all other parties entitled to payment must concur in any demand
3.16for withdrawal if the financial institution is to be protected under this section. No other
3.17notice or any other information shown to have been available to a financial institution shall
3.18affect its right to the protection provided here. A financial institution that receives written
3.19notice pursuant to this section or otherwise has reason to believe that a dispute exists as to
3.20the rights of the parties may refuse, without liability, to make payments in accordance with
3.21the terms of the account. The protection here provided shall not affect the rights of parties
3.22in disputes between themselves or their successors concerning the beneficial ownership
3.23of funds in, or withdrawn from, multiple-party accounts.
3.24 Sec. 6. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
3.25subdivision to read:
3.26 Subd. 3. Contract of deposit; sample form. A contract of deposit that contains
3.27provisions in substantially the following form establishes the type of account provided, and
3.28the account is governed by the provisions of this part applicable to an account of that type:
4.33 Sec. 7. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
4.34subdivision to read:
4.35 Subd. 4. Contract of deposit; generally. A contract of deposit that does not
4.36contain provisions in substantially the form provided in subdivision 3 is governed by
4.37the provisions of this part applicable to the type of account that most nearly conforms
4.38to 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, acting in the agent's capacity, in an account with an agency designation
1.21has no beneficial right to sums on deposit.
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 disabled or incapacitated party until the authority
2.6of the agent is terminated by the party, an attorney-in-fact is appointed by the party, or a
2.7conservator is appointed to 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) A financial institution, on request of an agent under an agency designation for an
2.10account, may pay to the agent sums on deposit in the account, whether or not a party is
2.11disabled, incapacitated, or deceased when the request is made or received, and whether or
2.12not the authority of the agent terminates on the disability or incapacity of a party.
2.13 Sec. 4. Minnesota Statutes 2012, section 524.6-204, is amended to read:
2.14524.6-204 RIGHT OF SURVIVORSHIP.
2.15(a) Sums remaining on deposit at the death of a party to a joint account belong to the
2.16surviving party or parties as against the estate of the decedent unless: (1) there is clear and
2.17convincing evidence of a different intention
2.18a valid will
2.19If there are two or more surviving parties, their respective ownerships during lifetime shall
2.20be in proportion to their previous ownership interests under section
2.21by an equal share for each survivor of any interest the decedent may have owned in the
2.22account immediately before death; and the right of survivorship continues between the
2.23surviving parties. The interest so determined is also the interest disposable by will.
2.24(b) If the account is a P.O.D. account, on the death of the original party or of the
2.25survivor of two or more original parties, any sums remaining on deposit belong to the
2.26P.O.D. payees if surviving, or to the survivor of them if one or more die before the
2.27surviving original party; if two or more P.O.D. payees survive, there is no right of
2.28survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account
2.29or deposit agreement expressly provide for survivorship between them.
2.30(c) In other cases, the death of any party to a multiple-party account has no effect
2.31on beneficial ownership of the account other than to transfer the rights of the decedent
2.32as part of the estate.
2.33(d) A right of survivorship arising from the express terms of the account, or under
2.34this section, or under a P.O.D. payee designation, may be changed by specific reference by
2.35will, but the terms of such will shall not be binding upon any financial institution unless
3.1it has been given a notice in writing of a claim thereunder, in which event the deposit
3.2shall remain undisbursed until an order has been made by the probate court adjudicating
3.3the decedent's interest disposable by will.
3.4 Sec. 5. Minnesota Statutes 2012, section 524.6-211, is amended to read:
3.5524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.
3.6Payment made pursuant to sections
3.7institution from all claims for amounts so paid whether or not the payment is consistent
3.8with the beneficial ownership of the account as between parties, P.O.D. payees, or
3.9beneficiaries by will or otherwise, or their successors. The protection here given does not
3.10extend to payments made after a financial institution has received written notice from
3.11any person entitled to request payment to the effect that withdrawals in accordance with
3.12the terms of the account, including one having an agency designation, should not be
3.13permitted, and the financial institution has had a reasonable opportunity to act on it when
3.14the payment is made. Unless the notice is withdrawn by the person giving it, the successor
3.15of any deceased party and all other parties entitled to payment must concur in any demand
3.16for withdrawal if the financial institution is to be protected under this section. No other
3.17notice or any other information shown to have been available to a financial institution shall
3.18affect its right to the protection provided here. A financial institution that receives written
3.19notice pursuant to this section or otherwise has reason to believe that a dispute exists as to
3.20the rights of the parties may refuse, without liability, to make payments in accordance with
3.21the terms of the account. The protection here provided shall not affect the rights of parties
3.22in disputes between themselves or their successors concerning the beneficial ownership
3.23of funds in, or withdrawn from, multiple-party accounts.
3.24 Sec. 6. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
3.25subdivision to read:
3.26 Subd. 3. Contract of deposit; sample form. A contract of deposit that contains
3.27provisions in substantially the following form establishes the type of account provided, and
3.28the account is governed by the provisions of this part applicable to an account of that type:
4.33 Sec. 7. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
4.34subdivision to read:
4.35 Subd. 4. Contract of deposit; generally. A contract of deposit that does not
4.36contain provisions in substantially the form provided in subdivision 3 is governed by
4.37the provisions of this part applicable to the type of account that most nearly conforms
4.38to the depositor's intent.
