HF 19

1st Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 04/24/2013 05:35 p.m.

1.1A bill for an act 1.2relating to accounts; allowing agency designations in certain situations; providing 1.3form language; making clarifying changes; clarifying filing requirements for 1.4appeals to Tax Court;amending Minnesota Statutes 2012, sections 271.06, 1.5by adding a subdivision; 524.6-201, subdivision 7, by adding a subdivision; 1.6524.6-203; 524.6-204; 524.6-211; 524.6-213, by adding subdivisions; proposing 1.7coding for new law in Minnesota Statutes, chapter 524. 1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9    Section 1. Minnesota Statutes 2012, section 271.06, is amended by adding a 1.10subdivision to read: 1.11     new text begin Subd. 2a. new text end new text begin Timely mailing treated as timely filing. new text end new text begin (a) If, after the period prescribed new text end 1.12 new text begin by subdivision 2, the original notice of appeal, proof of service upon the commissioner, new text end 1.13 new text begin and filing fee are delivered by mail in the United States to the Tax Court administrator new text end 1.14 new text begin or the court administrator of district court acting as court administrator of the Tax Court, new text end 1.15 new text begin then the date of filing is the date of the United States postmark stamped on the envelope new text end 1.16 new text begin or other appropriate wrapper in which the notice of appeal, proof of service upon the new text end 1.17 new text begin commissioner, and filing fee are mailed. new text end 1.18 new text begin (b) This subdivision applies only if the postmark date falls within the period new text end 1.19 new text begin prescribed by subdivision 2 and the original notice of appeal, proof of service upon the new text end 1.20 new text begin commissioner, and filing fee are deposited in the mail in the United States in an envelope new text end 1.21 new text begin or other appropriate wrapper, postage prepaid, properly addressed to the Tax Court new text end 1.22 new text begin administrator or the court administrator of district court acting as court administrator of new text end 1.23 new text begin the Tax Court. new text end 1.24 new text begin (c) Only the postmark of the United States Postal Service qualifies as proof of new text end 1.25 new text begin timely mailing under this subdivision. Private postage meters do not qualify as proof of new text end 2.1 new text begin timely filing under this subdivision. If the original notice of appeal, proof of service new text end 2.2 new text begin upon the commissioner, and filing fee are sent by United States registered mail, the date new text end 2.3 new text begin of registration is the postmark date. If the original notice of appeal, proof of service new text end 2.4 new text begin upon the commissioner, and filing fee are sent by United States certified mail and the new text end 2.5 new text begin sender's receipt is postmarked by the postal employee to whom the envelope containing new text end 2.6 new text begin the original notice of appeal, proof of service upon the commissioner, and filing fee is new text end 2.7 new text begin presented, the date of the United States postmark on the receipt is the postmark date. new text end 2.8 new text begin (d) A reference in this section to mail in the United States must be treated as new text end 2.9 new text begin including a reference to any designated delivery service and a reference in this section to new text end 2.10 new text begin a postmark by the United States Postal Service must be treated as including a reference new text end 2.11 new text begin to any date recorded or marked by any designated delivery service in accordance with new text end 2.12 new text begin section 7502(f) of the Internal Revenue Code. new text end 2.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for filings delivered by the United new text end 2.14 new text begin States Postal Service with a postmark date after August 1, 2013. new text end 2.15    Sec. 2. Minnesota Statutes 2012, section 524.6-201, is amended by adding a 2.16subdivision to read: 2.17     new text begin Subd. 2a. new text end new text begin Agent. new text end new text begin "Agent" means a person authorized to make account transactions new text end 2.18 new text begin for a party. new text end 2.19    Sec. 3. Minnesota Statutes 2012, section 524.6-201, subdivision 7, is amended to read: 2.20    Subd. 7. Party. "Party" means a person who, by the terms of the account, has a 2.21present right, subject to request, to payment from a multiple-party account new text begin other than as an new text end 2.22 new text begin agent new text end . A P.O.D. payee is a party only after the account becomes payable by reason of the 2.23payee surviving the original party. Unless the context otherwise requires, it includes a 2.24guardian, conservator, personal representative, or assignee, including an attaching creditor, 2.25of a party. It also includes a person identified as a trustee of an account for another whether 2.26or not a beneficiary is named, but it does not include any named beneficiary unless the 2.27beneficiary has a present right of withdrawal. 2.28    Sec. 4. Minnesota Statutes 2012, section 524.6-203, is amended to read: 2.29524.6-203 OWNERSHIP DURING LIFETIME. 2.30(a) A joint account belongs, during the lifetime of all parties, to the parties in 2.31proportion to the net contributions by each to the sums on deposit, unless there is clear and 2.32convincing evidence of a different intent. 3.1(b) A P.O.D. account belongs to the original purchasing or depositing party during 3.2the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named 3.3as original parties, during their lifetimes, rights as between them are governed by clause 3.4 new text begin paragraph new text end (a). 3.5 new text begin (c) An agent in an account with an agency designation has no beneficial right to new text end 3.6 new text begin sums on deposit by virtue of being named as an agent. new text end 3.7    Sec. 5. Minnesota Statutes 2012, section 524.6-204, is amended to read: 3.8524.6-204 RIGHT OF SURVIVORSHIP. 3.9(a) Sums remaining on deposit at the death of a party to a joint account belong to the 3.10surviving party or parties as against the estate of the decedent unless new text begin : (1) new text end there is clear and 3.11convincing evidence of a different intention, new text begin ; new text end or new text begin (2) new text end there is a different disposition made 3.12by a valid will as herein provided, specifically referring to such account new text begin , as provided in new text end 3.13 new text begin this section new text end . If there are two or more surviving parties, their respective ownerships during 3.14lifetime shall be in proportion to their previous ownership interests under section 524.6-203 3.15augmented by an equal share for each survivor of any interest the decedent may have owned 3.16in the account immediately before death; and the right of survivorship continues between 3.17the surviving parties. The interest so determined is also the interest disposable by will. 3.18(b) If the account is a P.O.D. account, on the death of the original party or of the 3.19survivor of two or more original parties, any sums remaining on deposit belong to the 3.20P.O.D. payees if surviving, or to the survivor of them if one or more die before the 3.21surviving original party; if two or more P.O.D. payees survive, there is no right of 3.22survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account 3.23or deposit agreement expressly provide for survivorship between them. 3.24(c) In other cases, the death of any party to a multiple-party account has no effect 3.25on beneficial ownership of the account other than to transfer the rights of the decedent 3.26as part of the estate. 3.27(d) A right of survivorship arising from the express terms of the account, or under 3.28this section, or under a P.O.D. payee designation, may be changed by specific reference by 3.29will, but the terms of such will shall not be binding upon any financial institution unless 3.30it has been given a notice in writing of a claim thereunder, in which event the deposit 3.31shall remain undisbursed until an order has been made by the probate court adjudicating 3.32the decedent's interest disposable by will. 3.33    Sec. 6. Minnesota Statutes 2012, section 524.6-211, is amended to read: 3.34524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE. 4.1Payment made pursuant to sections 524.6-208 to 524.6-210 discharges the financial 4.2institution from all claims for amounts so paid whether or not the payment is consistent 4.3with the beneficial ownership of the account as between parties, P.O.D. payees, or 4.4beneficiaries by will or otherwise, or their successors. The protection here given does not 4.5extend to payments made after a financial institution has received written notice from 4.6any person entitled to request payment to the effect that withdrawals in accordance with 4.7the terms of the account new text begin , including one having an agency designation, new text end should not be 4.8permitted new text begin , and the financial institution has had a reasonable opportunity to act on it when new text end 4.9 new text begin the payment is made new text end . Unless the notice is withdrawn by the person giving it, the successor 4.10of any deceased party and all other parties entitled to payment must concur in any demand 4.11for withdrawal if the financial institution is to be protected under this section. No other 4.12notice or any other information shown to have been available to a financial institution 4.13shall affect its right to the protection provided here. new text begin A financial institution that receives new text end 4.14 new text begin written notice pursuant to this section or that otherwise has reason to believe that a dispute new text end 4.15 new text begin exists as to the rights of the parties may refuse, without liability, to make payments in new text end 4.16 new text begin accordance with the terms of the account. new text end The protection here provided shall not affect 4.17the rights of parties in disputes between themselves or their successors concerning the 4.18beneficial ownership of funds in, or withdrawn from, multiple-party accounts. 4.19    Sec. 7. Minnesota Statutes 2012, section 524.6-213, is amended by adding a 4.20subdivision to read: 4.21     new text begin Subd. 3. new text end new text begin Contract of deposit; sample form. new text end new text begin A contract of deposit that contains new text end 4.22 new text begin provisions in substantially the following form establishes the type of account provided, and new text end 4.23 new text begin the account is governed by the provisions of this part applicable to an account of that type: new text end 4.24 new text begin UNIFORM SINGLE- OR MULTIPLE-PARTY ACCOUNT FORM new text end 4.25 new text begin PARTIES [Name One Or More Parties]: new text end 4.26 ..... ..... 4.27 new text begin OWNERSHIP [Select One And Initial]: new text end 4.28 ..... new text begin SINGLE-PARTY ACCOUNT new text end 4.29 ..... new text begin MULTIPLE-PARTY ACCOUNT new text end 4.30 4.31 new text begin Parties own account in proportion to net contributions unless there is clear new text end new text begin and convincing evidence of a different intent. new text end 4.32 new text begin RIGHTS AT DEATH [Select One And Initial]: new text end 4.33 ..... new text begin SINGLE-PARTY ACCOUNT new text end 4.34 new text begin At death of party, ownership passes as part of party's estate. new text end 4.35 4.36 ..... new text begin SINGLE-PARTY ACCOUNT WITH P.O.D. (PAYABLE ON DEATH) new text end new text begin DESIGNATION new text end 5.1 new text begin [Name One Or More Beneficiaries]: new text end 5.2 ..... ..... 5.3 5.4 new text begin At death of party, ownership passes to P.O.D. beneficiaries and is not part new text end new text begin of party's estate. new text end 5.5 ..... new text begin MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP new text end 5.6 new text begin At death of party, ownership passes to surviving parties. new text end 5.7 5.8 ..... new text begin MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP AND new text end new text begin P.O.D. (PAYABLE ON DEATH) DESIGNATION new text end 5.9 new text begin [Name One Or More Beneficiaries]: new text end 5.10 ..... ..... 5.11 5.12 new text begin At death of last surviving party, ownership passes to P.O.D. beneficiaries new text end new text begin and is not part of last surviving party's estate. new text end 5.13 ..... new text begin MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP new text end 5.14 5.15 new text begin At death of party, deceased party's ownership passes as part of deceased new text end new text begin party's estate. new text end 5.16 ..... new text begin AGENCY DESIGNATION [Optional] new text end 5.17 5.18 5.19 new text begin Agents may make account transactions for parties but have no ownership new text end new text begin or rights at death unless named as P.O.D. beneficiaries. [To Add Agency new text end new text begin Designation To Account, Name One Or More Agents]: new text end 5.20 ..... ..... 5.21 new text begin [Select One And Initial]: new text end 5.22 5.23 ..... new text begin AGENCY DESIGNATION SURVIVES DISABILITY OR INCAPACITY new text end new text begin OF ANY OR ALL OF THE PARTIES new text end 5.24 5.25 ..... new text begin AGENCY DESIGNATION TERMINATES ON DISABILITY OR new text end new text begin INCAPACITY OF THE SOLE PARTY OR LAST SURVIVING PARTY new text end 5.26    Sec. 8. Minnesota Statutes 2012, section 524.6-213, is amended by adding a 5.27subdivision to read: 5.28     new text begin Subd. 4. new text end new text begin Contract of deposit; generally. new text end new text begin A contract of deposit that does not new text end 5.29 new text begin contain provisions in substantially the form provided in subdivision 3 is governed by new text end 5.30 new text begin the provisions of this part applicable to the type of account that most nearly conforms new text end 5.31 new text begin to the depositor's intent. new text end 5.32    Sec. 9. new text begin [524.6-215] DESIGNATION OF AGENT. new text end 5.33 new text begin (a) By a writing signed by all parties, or by less than all of the parties if the contract new text end 5.34 new text begin of deposit expressly so provides, the parties may designate, as an agent of all parties new text end 5.35 new text begin on an account, a person other than a party. new text end 5.36 new text begin (b) Unless the terms of an agency designation provide that the authority of the agent new text end 5.37 new text begin terminates on disability or incapacity of a party, the agent's authority survives disability new text end 6.1 new text begin and incapacity. The agent may act for a party until the authority of the agent is terminated new text end 6.2 new text begin by the party, by an attorney-in-fact appointed by the party, or by a conservator appointed new text end 6.3 new text begin to protect the interests of the party. new text end 6.4 new text begin (c) Death of the sole party or last surviving party terminates the authority of an agent. new text end 6.5 new text begin (d) Except as otherwise provided for in section 524.6-211, a financial institution is new text end 6.6 new text begin not liable for account transactions performed at the direction of, or authorized by, an agent new text end 6.7 new text begin under an agency designation for an account if: new text end 6.8 new text begin (1) the financial institution has no actual notice of the termination of the agent's new text end 6.9 new text begin authority before the transaction; new text end 6.10 new text begin (2) the financial institution has no actual knowledge of the death of the sole party new text end 6.11 new text begin or last surviving party; or new text end 6.12 new text begin (3) the agent's authority does not survive the disability or incapacity of all the parties, new text end 6.13 new text begin and the financial institution has not received actual notice of the disability or incapacity. new text end 6.14    Sec. 10. new text begin [524.6-216] TYPES OF ACCOUNT; EXISTING ACCOUNTS. new text end 6.15 new text begin (a) An account may be for a single party or multiple parties. A multiple-party new text end 6.16 new text begin account may be with or without a right of survivorship between the parties. Subject to new text end 6.17 new text begin section 524.6-204, either a single-party account or a multiple-party account may have a new text end 6.18 new text begin P.O.D. designation, an agency designation, or both. new text end 6.19 new text begin (b) An account established before, on or after August 1, 2013, whether in the form new text end 6.20 new text begin prescribed in section 524.6-213 or in any other form acceptable to the financial institution, new text end 6.21 new text begin is either a single-party account or a multiple-party account, with or without right of new text end 6.22 new text begin survivorship, and with or without a P.O.D. designation or an agency designation within the new text end 6.23 new text begin meaning of this chapter, and is governed by this chapter. new text end 6.24 new text begin (c) An agency designation created on or after August 1, 2013, is governed by this new text end 6.25 new text begin chapter. new text end