HF 19

as introduced - 88th Legislature (2013 - 2014) Posted on 01/10/2013 11:59am

A bill for an act
relating to probate; multiparty accounts; allowing agency designations in
certain situations; amending Minnesota Statutes 2012, sections 524.6-201, by
adding a subdivision; 524.6-203; 524.6-204; 524.6-211; 524.6-213, by adding
subdivisions; proposing coding for new law in Minnesota Statutes, chapter 524.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 524.6-201, is amended by adding a
subdivision to read:

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
for a party.
new text end

Sec. 2.

Minnesota Statutes 2012, section 524.6-203, is amended to read:

524.6-203 OWNERSHIP DURING LIFETIME.

(a) A joint account belongs, during the lifetime of all parties, to the parties in
proportion to the net contributions by each to the sums on deposit, unless there is clear and
convincing evidence of a different intent.

(b) A P.O.D. account belongs to the original purchasing or depositing party during
the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named
as original parties, during their lifetimes, rights as between them are governed by deleted text begin clause
deleted text end new text begin paragraph new text end (a).

new text begin (c) An agent, acting in the agent's capacity, in an account with an agency designation
has no beneficial right to sums on deposit.
new text end

Sec. 3.

new text begin [524.6-2031] DESIGNATION OF AGENT.
new text end

new text begin (a) By a writing signed by all parties, the parties may designate, as an agent of all
parties on an account, a person other than a party.
new text end

new text begin (b) Unless the terms of an agency designation provide that the authority of the agent
terminates on disability or incapacity of a party, the agent's authority survives disability
and incapacity. The agent may act for a disabled or incapacitated party until the authority
of the agent is terminated by the party, an attorney-in-fact is appointed by the party, or a
conservator is appointed to protect the interests of a party.
new text end

new text begin (c) Death of the sole party or last surviving party terminates the authority of an agent.
new text end

new text begin (d) A financial institution, on request of an agent under an agency designation for an
account, may pay to the agent sums on deposit in the account, whether or not a party is
disabled, incapacitated, or deceased when the request is made or received, and whether or
not the authority of the agent terminates on the disability or incapacity of a party.
new text end

Sec. 4.

Minnesota Statutes 2012, section 524.6-204, is amended to read:

524.6-204 RIGHT OF SURVIVORSHIP.

(a) Sums remaining on deposit at the death of a party to a joint account belong to the
surviving party or parties as against the estate of the decedent unless new text begin : (1) new text end there is clear and
convincing evidence of a different intention deleted text begin , deleted text end new text begin ; new text end or new text begin (2) new text end there is a different disposition made by
a valid will deleted text begin as herein provided, deleted text end specifically referring to such account new text begin , as herein provided new text end .
If there are two or more surviving parties, their respective ownerships during lifetime shall
be in proportion to their previous ownership interests under section 524.6-203 augmented
by an equal share for each survivor of any interest the decedent may have owned in the
account immediately before death; and the right of survivorship continues between the
surviving parties. The interest so determined is also the interest disposable by will.

(b) If the account is a P.O.D. account, on the death of the original party or of the
survivor of two or more original parties, any sums remaining on deposit belong to the
P.O.D. payees if surviving, or to the survivor of them if one or more die before the
surviving original party; if two or more P.O.D. payees survive, there is no right of
survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account
or deposit agreement expressly provide for survivorship between them.

(c) In other cases, the death of any party to a multiple-party account has no effect
on beneficial ownership of the account other than to transfer the rights of the decedent
as part of the estate.

(d) A right of survivorship arising from the express terms of the account, or under
this section, or under a P.O.D. payee designation, may be changed by specific reference by
will, but the terms of such will shall not be binding upon any financial institution unless
it has been given a notice in writing of a claim thereunder, in which event the deposit
shall remain undisbursed until an order has been made by the probate court adjudicating
the decedent's interest disposable by will.

Sec. 5.

Minnesota Statutes 2012, section 524.6-211, is amended to read:

524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.

Payment made pursuant to sections 524.6-208 to 524.6-210 discharges the financial
institution from all claims for amounts so paid whether or not the payment is consistent
with the beneficial ownership of the account as between parties, P.O.D. payees, or
beneficiaries by will or otherwise, or their successors. The protection here given does not
extend to payments made after a financial institution has received written notice from
any person entitled to request payment to the effect that withdrawals in accordance with
the terms of the account new text begin , including one having an agency designation, new text end should not be
permitted new text begin , and the financial institution has had a reasonable opportunity to act on it when
the payment is made new text end . Unless the notice is withdrawn by the person giving it, the successor
of any deceased party and all other parties entitled to payment must concur in any demand
for withdrawal if the financial institution is to be protected under this section. No other
notice or any other information shown to have been available to a financial institution shall
affect its right to the protection provided here. new text begin A financial institution that receives written
notice pursuant to this section or otherwise has reason to believe that a dispute exists as to
the rights of the parties may refuse, without liability, to make payments in accordance with
the terms of the account. new text end The protection here provided shall not affect the rights of parties
in disputes between themselves or their successors concerning the beneficial ownership
of funds in, or withdrawn from, multiple-party accounts.

Sec. 6.

Minnesota Statutes 2012, section 524.6-213, is amended by adding a
subdivision to read:

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
provisions in substantially the following form establishes the type of account provided, and
the account is governed by the provisions of this part applicable to an account of that type:
new text end

new text begin UNIFORM SINGLE- OR MULTIPLE-PARTY ACCOUNT FORM
new text end

new text begin PARTIES [Name One Or More Parties]: new text end
new text begin . new text end			new text begin . new text end
new text begin OWNERSHIP [Select One And Initial]: new text end
new text begin . new text end	new text begin SINGLE-PARTY ACCOUNT new text end
new text begin . new text end	new text begin MULTIPLE-PARTY ACCOUNT new text end
		new text begin Parties own account in proportion to net contributions unless there is clear and convincing evidence of a different intent. new text end
new text begin RIGHTS AT DEATH [Select One And Initial]: new text end
new text begin . new text end	new text begin SINGLE-PARTY ACCOUNT new text end
		new text begin At death of party, ownership passes as part of party's estate. new text end
new text begin . new text end	new text begin SINGLE-PARTY ACCOUNT WITH P.O.D. (PAYABLE ON DEATH) DESIGNATION new text end
		new text begin [Name One Or More Beneficiaries]: new text end
		new text begin . new text end	new text begin . new text end
		new text begin At death of party, ownership passes to P.O.D. beneficiaries and is not part of party's estate. new text end
new text begin . new text end	new text begin MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP new text end
		new text begin At death of party, ownership passes to surviving parties. new text end
new text begin . new text end	new text begin MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP AND P.O.D. (PAYABLE ON DEATH) DESIGNATION new text end
		new text begin [Name One Or More Beneficiaries]: new text end
		new text begin . new text end	new text begin . new text end
		new text begin At death of last surviving party, ownership passes to P.O.D. beneficiaries and is not part of last surviving party's estate. new text end
new text begin . new text end	new text begin MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP new text end
		new text begin At death of party, deceased party's ownership passes as part of deceased party's estate. new text end
new text begin . new text end	new text begin AGENCY (POWER OF ATTORNEY) DESIGNATION [Optional] new text end
		new text begin Agents may make account transactions for parties but have no ownership or rights at death unless named as P.O.D. beneficiaries. [To Add Agency Designation To Account, Name One Or More Agents]: new text end
		new text begin . new text end	new text begin . new text end
new text begin [Select One And Initial]: new text end
new text begin . new text end		new text begin AGENCY DESIGNATION SURVIVES DISABILITY OR INCAPACITY OF PARTIES new text end
new text begin . new text end		new text begin AGENCY DESIGNATION TERMINATES ON DISABILITY OR INCAPACITY OF PARTIES new text end

Sec. 7.

Minnesota Statutes 2012, section 524.6-213, is amended by adding a
subdivision to read:

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
contain provisions in substantially the form provided in subdivision 3 is governed by
the provisions of this part applicable to the type of account that most nearly conforms
to the depositor's intent.
new text end