Minnesota Legislature
HF 19
1st Unofficial Engrossment - 88th Legislature (2013 - 2014) Posted on 04/24/2013 05:35pm
KEY: stricken = removed, old language.
underscored = added, new language.
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 Subd. 2a. Timely mailing treated as timely filing. (a) If, after the period prescribed
1.12by subdivision 2, the original notice of appeal, proof of service upon the commissioner,
1.13and filing fee are delivered by mail in the United States to the Tax Court administrator
1.14or the court administrator of district court acting as court administrator of the Tax Court,
1.15then the date of filing is the date of the United States postmark stamped on the envelope
1.16or other appropriate wrapper in which the notice of appeal, proof of service upon the
1.17commissioner, and filing fee are mailed.
1.18(b) This subdivision applies only if the postmark date falls within the period
1.19prescribed by subdivision 2 and the original notice of appeal, proof of service upon the
1.20commissioner, and filing fee are deposited in the mail in the United States in an envelope
1.21or other appropriate wrapper, postage prepaid, properly addressed to the Tax Court
1.22administrator or the court administrator of district court acting as court administrator of
1.23the Tax Court.
1.24(c) Only the postmark of the United States Postal Service qualifies as proof of
1.25timely mailing under this subdivision. Private postage meters do not qualify as proof of
2.1timely filing under this subdivision. If the original notice of appeal, proof of service
2.2upon the commissioner, and filing fee are sent by United States registered mail, the date
2.3of registration is the postmark date. If the original notice of appeal, proof of service
2.4upon the commissioner, and filing fee are sent by United States certified mail and the
2.5sender's receipt is postmarked by the postal employee to whom the envelope containing
2.6the original notice of appeal, proof of service upon the commissioner, and filing fee is
2.7presented, the date of the United States postmark on the receipt is the postmark date.
2.8(d) A reference in this section to mail in the United States must be treated as
2.9including a reference to any designated delivery service and a reference in this section to
2.10a postmark by the United States Postal Service must be treated as including a reference
2.11to any date recorded or marked by any designated delivery service in accordance with
2.12section 7502(f) of the Internal Revenue Code.
2.13EFFECTIVE DATE.This section is effective for filings delivered by the United
2.14States Postal Service with a postmark date after August 1, 2013.
2.15 Sec. 2. Minnesota Statutes 2012, section 524.6-201, is amended by adding a
2.16subdivision to read:
2.17 Subd. 2a. Agent. "Agent" means a person authorized to make account transactions
2.18for a party.
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 other than as an
2.22agent. 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 byclause
3.4 paragraph (a).
3.5(c) An agent in an account with an agency designation has no beneficial right to
3.6sums on deposit by virtue of being named as an agent.
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: (1) there is clear and
3.11convincing evidence of a different intention,; or (2) there is a different disposition made
3.12by a valid willas herein provided, specifically referring to such account, as provided in
3.13this section. If there are two or more surviving parties, their respective ownerships during
3.14lifetime shall be in proportion to their previous ownership interests under section524.6-203
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 sections524.6-208 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, including one having an agency designation, should not be
4.8permitted, and the financial institution has had a reasonable opportunity to act on it when
4.9the payment is made. 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. A financial institution that receives
4.14written notice pursuant to this section or that otherwise has reason to believe that a dispute
4.15exists as to the rights of the parties may refuse, without liability, to make payments in
4.16accordance with the terms of the account. 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 Subd. 3. Contract of deposit; sample form. A contract of deposit that contains
4.22provisions in substantially the following form establishes the type of account provided, and
4.23the account is governed by the provisions of this part applicable to an account of that type:
5.26 Sec. 8. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
5.27subdivision to read:
5.28 Subd. 4. Contract of deposit; generally. A contract of deposit that does not
5.29contain provisions in substantially the form provided in subdivision 3 is governed by
5.30the provisions of this part applicable to the type of account that most nearly conforms
5.31to the depositor's intent.
5.32 Sec. 9. [524.6-215] DESIGNATION OF AGENT.
5.33(a) By a writing signed by all parties, or by less than all of the parties if the contract
5.34of deposit expressly so provides, the parties may designate, as an agent of all parties
5.35on an account, a person other than a party.
5.36(b) Unless the terms of an agency designation provide that the authority of the agent
5.37terminates on disability or incapacity of a party, the agent's authority survives disability
6.1and incapacity. The agent may act for a party until the authority of the agent is terminated
6.2by the party, by an attorney-in-fact appointed by the party, or by a conservator appointed
6.3to protect the interests of the party.
6.4(c) Death of the sole party or last surviving party terminates the authority of an agent.
6.5(d) Except as otherwise provided for in section 524.6-211, a financial institution is
6.6not liable for account transactions performed at the direction of, or authorized by, an agent
6.7under an agency designation for an account if:
6.8(1) the financial institution has no actual notice of the termination of the agent's
6.9authority before the transaction;
6.10(2) the financial institution has no actual knowledge of the death of the sole party
6.11or last surviving party; or
6.12(3) the agent's authority does not survive the disability or incapacity of all the parties,
6.13and the financial institution has not received actual notice of the disability or incapacity.
6.14 Sec. 10. [524.6-216] TYPES OF ACCOUNT; EXISTING ACCOUNTS.
6.15(a) An account may be for a single party or multiple parties. A multiple-party
6.16account may be with or without a right of survivorship between the parties. Subject to
6.17section 524.6-204, either a single-party account or a multiple-party account may have a
6.18P.O.D. designation, an agency designation, or both.
6.19(b) An account established before, on or after August 1, 2013, whether in the form
6.20prescribed in section 524.6-213 or in any other form acceptable to the financial institution,
6.21is either a single-party account or a multiple-party account, with or without right of
6.22survivorship, and with or without a P.O.D. designation or an agency designation within the
6.23meaning of this chapter, and is governed by this chapter.
6.24(c) An agency designation created on or after August 1, 2013, is governed by this
6.25chapter.
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 Subd. 2a. Timely mailing treated as timely filing. (a) If, after the period prescribed
1.12by subdivision 2, the original notice of appeal, proof of service upon the commissioner,
1.13and filing fee are delivered by mail in the United States to the Tax Court administrator
1.14or the court administrator of district court acting as court administrator of the Tax Court,
1.15then the date of filing is the date of the United States postmark stamped on the envelope
1.16or other appropriate wrapper in which the notice of appeal, proof of service upon the
1.17commissioner, and filing fee are mailed.
1.18(b) This subdivision applies only if the postmark date falls within the period
1.19prescribed by subdivision 2 and the original notice of appeal, proof of service upon the
1.20commissioner, and filing fee are deposited in the mail in the United States in an envelope
1.21or other appropriate wrapper, postage prepaid, properly addressed to the Tax Court
1.22administrator or the court administrator of district court acting as court administrator of
1.23the Tax Court.
1.24(c) Only the postmark of the United States Postal Service qualifies as proof of
1.25timely mailing under this subdivision. Private postage meters do not qualify as proof of
2.1timely filing under this subdivision. If the original notice of appeal, proof of service
2.2upon the commissioner, and filing fee are sent by United States registered mail, the date
2.3of registration is the postmark date. If the original notice of appeal, proof of service
2.4upon the commissioner, and filing fee are sent by United States certified mail and the
2.5sender's receipt is postmarked by the postal employee to whom the envelope containing
2.6the original notice of appeal, proof of service upon the commissioner, and filing fee is
2.7presented, the date of the United States postmark on the receipt is the postmark date.
2.8(d) A reference in this section to mail in the United States must be treated as
2.9including a reference to any designated delivery service and a reference in this section to
2.10a postmark by the United States Postal Service must be treated as including a reference
2.11to any date recorded or marked by any designated delivery service in accordance with
2.12section 7502(f) of the Internal Revenue Code.
2.13EFFECTIVE DATE.This section is effective for filings delivered by the United
2.14States Postal Service with a postmark date after August 1, 2013.
2.15 Sec. 2. Minnesota Statutes 2012, section 524.6-201, is amended by adding a
2.16subdivision to read:
2.17 Subd. 2a. Agent. "Agent" means a person authorized to make account transactions
2.18for a party.
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 other than as an
2.22agent. 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
3.4 paragraph (a).
3.5(c) An agent in an account with an agency designation has no beneficial right to
3.6sums on deposit by virtue of being named as an agent.
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: (1) there is clear and
3.11convincing evidence of a different intention
3.12by a valid will
3.13this section. 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
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
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, including one having an agency designation, should not be
4.8permitted, and the financial institution has had a reasonable opportunity to act on it when
4.9the payment is made. 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. A financial institution that receives
4.14written notice pursuant to this section or that otherwise has reason to believe that a dispute
4.15exists as to the rights of the parties may refuse, without liability, to make payments in
4.16accordance with the terms of the account. 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 Subd. 3. Contract of deposit; sample form. A contract of deposit that contains
4.22provisions in substantially the following form establishes the type of account provided, and
4.23the account is governed by the provisions of this part applicable to an account of that type:
5.26 Sec. 8. Minnesota Statutes 2012, section 524.6-213, is amended by adding a
5.27subdivision to read:
5.28 Subd. 4. Contract of deposit; generally. A contract of deposit that does not
5.29contain provisions in substantially the form provided in subdivision 3 is governed by
5.30the provisions of this part applicable to the type of account that most nearly conforms
5.31to the depositor's intent.
5.32 Sec. 9. [524.6-215] DESIGNATION OF AGENT.
5.33(a) By a writing signed by all parties, or by less than all of the parties if the contract
5.34of deposit expressly so provides, the parties may designate, as an agent of all parties
5.35on an account, a person other than a party.
5.36(b) Unless the terms of an agency designation provide that the authority of the agent
5.37terminates on disability or incapacity of a party, the agent's authority survives disability
6.1and incapacity. The agent may act for a party until the authority of the agent is terminated
6.2by the party, by an attorney-in-fact appointed by the party, or by a conservator appointed
6.3to protect the interests of the party.
6.4(c) Death of the sole party or last surviving party terminates the authority of an agent.
6.5(d) Except as otherwise provided for in section 524.6-211, a financial institution is
6.6not liable for account transactions performed at the direction of, or authorized by, an agent
6.7under an agency designation for an account if:
6.8(1) the financial institution has no actual notice of the termination of the agent's
6.9authority before the transaction;
6.10(2) the financial institution has no actual knowledge of the death of the sole party
6.11or last surviving party; or
6.12(3) the agent's authority does not survive the disability or incapacity of all the parties,
6.13and the financial institution has not received actual notice of the disability or incapacity.
6.14 Sec. 10. [524.6-216] TYPES OF ACCOUNT; EXISTING ACCOUNTS.
6.15(a) An account may be for a single party or multiple parties. A multiple-party
6.16account may be with or without a right of survivorship between the parties. Subject to
6.17section 524.6-204, either a single-party account or a multiple-party account may have a
6.18P.O.D. designation, an agency designation, or both.
6.19(b) An account established before, on or after August 1, 2013, whether in the form
6.20prescribed in section 524.6-213 or in any other form acceptable to the financial institution,
6.21is either a single-party account or a multiple-party account, with or without right of
6.22survivorship, and with or without a P.O.D. designation or an agency designation within the
6.23meaning of this chapter, and is governed by this chapter.
6.24(c) An agency designation created on or after August 1, 2013, is governed by this
6.25chapter.