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Senate File 241

Partial Bill History

Bill Text

PAG LIN
  1  1                                            SENATE FILE 241
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO THE PROBATE CODE INCLUDING GUARDIANSHIPS AND
  1  5    CONSERVATORSHIPS AND ADOPTING THE UNIFORM TRANSFER ON 
  1  6    DEATH SECURITY REGISTRATION ACT.
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 
  1  9 
  1 10    Section 1.  Section 633.3, Code 1997, is amended by adding
  1 11 the following new subsection:
  1 12    NEW SUBSECTION.  18A.  FUNCTIONAL LIMITATIONS – means the
  1 13 behavior or condition of a person which impairs the person's
  1 14 ability to care for the person's personal safety or to attend
  1 15 to or provide for necessities for the person.
  1 16    Sec. 2.  Section 633.3, subsection 22, Code 1997, is
  1 17 amended to read as follows:
  1 18    22.  INCOMPETENT – includes means the condition of any
  1 19 person who has been adjudicated by a court to be incapable of
  1 20 managing the person's property, or caring for the person's own
  1 21 self, or both to meet at least one of the following
  1 22 conditions:
  1 23    a.  To have a decision-making capacity which is so impaired
  1 24 that the person is unable to care for the person's personal
  1 25 safety or to attend to or provide for necessities for the
  1 26 person such as food, shelter, clothing, or medical care,
  1 27 without which physical injury or illness may occur.
  1 28    b.  To have a decision-making capacity which is so impaired
  1 29 that the person is unable to make, communicate, or carry out
  1 30 important decisions concerning the person's financial affairs.
  1 31    c.  To have a decision-making capacity which is so impaired
  1 32 that both paragraphs "a" and "b" are applicable to the person.
  1 33    Sec. 3.  Section 633.10, Code 1997, is amended by adding
  1 34 the following new subsection:
  1 35    NEW SUBSECTION.  5.  ACTIONS FOR ACCOUNTING.  An action for
  2  1 an accounting against a beneficiary of a transfer on death
  2  2 security registration, pursuant to this chapter.
  2  3    Sec. 4.  NEW SECTION.  633.551A  GUARDIANSHIPS AND
  2  4 CONSERVATORSHIPS – GENERAL PROVISIONS.
  2  5    1.  The determination of incompetency of the proposed ward
  2  6 or ward and the determination of the need for the appointment
  2  7 of a guardian or conservator or of the modification or
  2  8 termination of a guardianship or conservatorship shall be
  2  9 supported by clear and convincing evidence.
  2 10    2.  The burden of persuasion is on the petitioner in an
  2 11 initial proceeding to appoint a guardian or conservator.  In a
  2 12 proceeding to modify or terminate a guardianship or
  2 13 conservatorship, if the guardian or conservator is the
  2 14 petitioner, the burden of persuasion remains with the guardian
  2 15 or conservator.  In a proceeding to terminate a guardianship
  2 16 or conservatorship, if the ward is the petitioner, the ward
  2 17 shall make a prima facie showing of some decision-making
  2 18 capacity.  Once a prima facie showing is made, the burden of
  2 19 persuasion is on the guardian or conservator to show by clear
  2 20 and convincing evidence that the ward is incompetent.
  2 21    3.  In determining whether a guardianship or
  2 22 conservatorship is to be established, modified, or terminated,
  2 23 the district court shall consider if a limited guardianship or
  2 24 conservatorship pursuant to section 633.635 or 633.637 is
  2 25 appropriate.  In making the determination, the court shall
  2 26 make findings of fact to support the powers conferred on the
  2 27 guardian or conservator.
  2 28    4.  In proceedings to establish, modify, or terminate a
  2 29 guardianship or conservatorship, in determining if the
  2 30 proposed ward or ward is incompetent as defined in section
  2 31 633.3, the court shall consider credible evidence from any
  2 32 source to the effect of third-party assistance in meeting the
  2 33 needs of the proposed ward or ward.  However, neither party to
  2 34 the action shall have the burden to produce such evidence
  2 35 relating to third-party assistance.
  3  1    Sec. 5.  Section 633.552, subsection 2, paragraph a, Code
  3  2 1997, is amended to read as follows:
  3  3    a.  By reason of mental, physical or other incapacity is
  3  4 unable to make or carry out important decisions concerning the
  3  5 proposed ward's person or affairs, other than financial
  3  6 affairs.
  3  7    a.  Is a person whose decision-making capacity is so
  3  8 impaired that the person is unable to care for the person's
  3  9 personal safety or to attend to or provide for necessities for
  3 10 the person such as food, shelter, clothing, or medical care,
  3 11 without which physical injury or illness might occur.
  3 12    Sec. 6.  Section 633.556, Code 1997, is amended to read as
  3 13 follows:
  3 14    633.556  APPOINTMENT OF GUARDIAN.
  3 15    1.  If the allegations of the petition as to the status of
  3 16 the proposed ward and the necessity for the appointment of a
  3 17 guardian are proved by clear and convincing evidence, the
  3 18 court may appoint a guardian.
  3 19    2.  In all proceedings to appoint a guardian, the court
  3 20 shall consider the functional limitations of the proposed ward
  3 21 and whether a limited guardianship, as authorized in section
  3 22 633.635, is appropriate.
  3 23    3.  Section 633.551A applies to the appointment of a
  3 24 conservator.
  3 25    Sec. 7.  Section 633.557, Code 1997, is amended to read as
  3 26 follows:
  3 27    633.557  APPOINTMENT OF GUARDIAN ON VOLUNTARY PETITION.
  3 28    1.  A guardian may also be appointed by the court upon the
  3 29 verified petition of the proposed ward, without further
  3 30 notice, if the proposed ward is other than a minor under the
  3 31 age of fourteen years, provided the court determines that such
  3 32 an appointment will inure to the best interest of the
  3 33 applicant.  However, if an involuntary petition is pending,
  3 34 the court shall be governed by section 633.634.  The petition
  3 35 shall provide the proposed ward notice of a guardian's powers
  4  1 as provided in section 633.562.
  4  2    2.  In all proceedings to appoint a guardian, the court
  4  3 shall consider whether a limited guardianship, as authorized
  4  4 in section 633.635, is appropriate.
  4  5    Sec. 8.  Section 633.560, Code 1997, is amended to read as
  4  6 follows:
  4  7    633.560  APPOINTMENT OF GUARDIAN ON A STANDBY BASIS.
  4  8    A petition for the appointment of a guardian on a standby
  4  9 basis may be filed by any person under the same procedure and
  4 10 requirements as provided in sections 633.591 to 633.597, for
  4 11 appointment of standby conservator, insofar as applicable.  In
  4 12 all proceedings to appoint a guardian, the court shall
  4 13 consider whether a limited guardianship, as authorized in
  4 14 section 633.635, is appropriate.
  4 15    Sec. 9.  Section 633.566, subsection 2, paragraph a, Code
  4 16 1997, is amended to read as follows:
  4 17    a.  By reason of mental, physical or other incapacity is
  4 18 unable to make or carry out important decisions concerning the
  4 19 proposed ward's financial affairs.
  4 20    a.  Is a person whose decision-making capacity is so
  4 21 impaired that the person is unable to make, communicate, or
  4 22 carry out important decisions concerning the person's
  4 23 financial affairs.
  4 24    Sec. 10.  Section 633.570, Code 1997, is amended to read as
  4 25 follows:
  4 26    633.570  APPOINTMENT OF CONSERVATOR.
  4 27    1.  If the allegations of the petition as to the status of
  4 28 the proposed ward and the necessity for the appointment of a
  4 29 conservator are proved by clear and convincing evidence, the
  4 30 court may appoint a conservator.
  4 31    2.  In all proceedings to appoint a conservator, the court
  4 32 shall consider the functional limitations of the person and
  4 33 whether a limited conservatorship, as authorized in section
  4 34 633.637, is appropriate.
  4 35    3.  Section 633.551A applies to the appointment of a
  5  1 conservator.
  5  2    Sec. 11.  Section 633.572, Code 1997, is amended to read as
  5  3 follows:
  5  4    633.572  APPOINTMENT OF CONSERVATOR ON VOLUNTARY PETITION.
  5  5    1.  A conservator may also be appointed by the court upon
  5  6 the verified petition of the proposed ward, without further
  5  7 notice, if the proposed ward is other than a minor under the
  5  8 age of fourteen years, provided the court determines that such
  5  9 an appointment will inure to the best interest of the
  5 10 applicant.  However, if an involuntary petition is pending,
  5 11 the court shall be governed by section 633.634.  The petition
  5 12 shall provide the proposed ward notice of a conservator's
  5 13 powers as provided in section 633.576.
  5 14    2.  In all proceedings to appoint a conservator, the court
  5 15 shall consider whether a limited conservatorship, as
  5 16 authorized in section 633.637, is appropriate.
  5 17    Sec. 12.  Section 633.596, Code 1997, is amended to read as
  5 18 follows:
  5 19    633.596  TIME OF CONSIDERATIONS – APPOINTMENT OF
  5 20 CONSERVATOR.
  5 21    At the time such a standby petition is filed under this
  5 22 part, the court, without any notice, may appoint the
  5 23 conservator nominated in such petition or may set the petition
  5 24 for hearing on such notice as the court may prescribe shall
  5 25 consider whether a limited conservatorship, as authorized in
  5 26 section 633.637, is appropriate.
  5 27    Sec. 13.  Section 633.635, subsection 1, unnumbered
  5 28 paragraph 1, Code 1997, is amended to read as follows:
  5 29    A Based upon the evidence produced at the hearing, the
  5 30 court may grant a guardian may be granted the following powers
  5 31 and duties which may be exercised without prior court
  5 32 approval:
  5 33    Sec. 14.  Section 633.635, subsections 3 and 4, Code 1997,
  5 34 are amended to read as follows:
  5 35    3.  The court may take into account all available
  6  1 information concerning the capabilities of the ward and any
  6  2 additional evaluation deemed necessary, including the
  6  3 availability of third-party assistance to meet the needs of
  6  4 the ward or proposed ward, and may direct that the guardian
  6  5 have only a specially limited responsibility for the ward.  In
  6  6 that event, the court shall state those areas of
  6  7 responsibility which shall be supervised by the guardian and
  6  8 all others shall be retained by the ward.  The court may make
  6  9 a finding that the ward lacks the capacity to contract a valid
  6 10 marriage.
  6 11    4.  From time to time, upon a proper showing, the court may
  6 12 alter modify the respective responsibilities of the guardian
  6 13 and the ward, after notice to the ward and an opportunity to
  6 14 be heard.  Any modification that would be more restrictive or
  6 15 burdensome for the ward shall be based on clear and convincing
  6 16 evidence that the ward continues to fall within the categories
  6 17 of section 633.552, subsection 2, paragraph "a" or "b", and
  6 18 that the facts justify a modification of the guardianship.
  6 19 Section 633.551A applies to the modification proceedings.  Any
  6 20 modification that would be less restrictive for the ward shall
  6 21 be based upon proof in accordance with the requirements of
  6 22 section 633.675.
  6 23    Sec. 15.  Section 633.637, Code 1997, is amended to read as
  6 24 follows:
  6 25    633.637  POWERS OF WARD.
  6 26    A ward for whom a conservator has been appointed shall not
  6 27 have the power to convey, encumber, or dispose of property in
  6 28 any manner, other than by will if the ward possesses the
  6 29 requisite testamentary capacity, unless the court determines
  6 30 that the ward has a limited ability to handle the ward's own
  6 31 funds.  If the court makes such a finding, it shall specify to
  6 32 what extent the ward may possess and use the ward's own funds.
  6 33    Any modification of the powers of the ward that would be
  6 34 more restrictive of the ward's control over the ward's
  6 35 financial affairs shall be based upon clear and convincing
  7  1 evidence and the burden of persuasion is on the conservator.
  7  2 Any modification that would be less restrictive of the ward's
  7  3 control over the ward's financial affairs shall be based upon
  7  4 proof in accordance with the requirements of section 633.675.
  7  5    Sec. 16.  Section 633.675, subsection 3, Code 1997, is
  7  6 amended to read as follows:
  7  7    3.  A determination by the court that the ward is competent
  7  8 and capable of managing the ward's property and affairs, and
  7  9 that the continuance of the guardianship or conservatorship
  7 10 would not be in the ward's best interests no longer a person
  7 11 whose decision-making capacity is so impaired as to bring the
  7 12 ward within the categories of section 633.552, subsection 2,
  7 13 paragraph "a", or section 633.566, subsection 2, paragraph
  7 14 "a".  In a proceeding to terminate a guardianship or a
  7 15 conservatorship, the ward shall make a prima facie showing
  7 16 that the ward has some decision-making capacity.  Once the
  7 17 ward has made that showing, the guardian or conservator has
  7 18 the burden to prove by clear and convincing evidence that the
  7 19 ward's decision-making capacity is so impaired, as provided in
  7 20 section 633.552, subsection 2, paragraph "a", or section
  7 21 633.566, subsection 2, paragraph "a", that the guardianship or
  7 22 conservatorship should not be terminated.
  7 23    Sec. 17.  NEW SECTION.  633.800  SHORT TITLE – RULES OF
  7 24 CONSTRUCTION.
  7 25    1.  This division shall be known and may be cited as the
  7 26 uniform transfer on death security registration Act.
  7 27    2.  The provisions of this division shall be liberally
  7 28 construed and applied to promote its underlying purposes and
  7 29 policy and to make uniform the laws with respect to the
  7 30 subject of its provisions among states enacting this uniform
  7 31 Act.
  7 32    3.  Unless displaced by the particular provisions of this
  7 33 division, the principles of law and equity supplement the
  7 34 provisions of this division.
  7 35    Sec. 18.  NEW SECTION.  633.801  DEFINITIONS.
  8  1    As used in this division, unless the context otherwise
  8  2 requires:
  8  3    1.  "Beneficiary form" means a registration of a security
  8  4 which indicates the present owner of the security and the
  8  5 intention of the owner regarding the person who will become
  8  6 the owner of the security upon the death of the owner.
  8  7    2.  "Devisee" means any person designated in a will to
  8  8 receive a disposition of real or personal property.
  8  9    3.  "Heir" means a person, including the surviving spouse,
  8 10 who is entitled under the statutes of intestate succession to
  8 11 the property of a decedent.
  8 12    4.  "Register" means to issue a certificate showing the
  8 13 ownership of a certificated security or, in the case of an
  8 14 uncertificated security, to initiate or transfer an account
  8 15 showing ownership of the security.
  8 16    5.  "Registering entity" means a person who originates or
  8 17 transfers a security title by registration, including a broker
  8 18 maintaining security accounts for customers and a transfer
  8 19 agent or other person acting for or as an issuer of
  8 20 securities.
  8 21    6.  "Security" means a security as defined in section
  8 22 502.102.
  8 23    7.  "Security account" means either of the following:
  8 24    a.  Any of the following:
  8 25    (1)  A reinvestment account associated with a security.
  8 26    (2)  A securities account with a broker.
  8 27    (3)  A cash balance in a brokerage account.
  8 28    (4)  Cash, interest, earnings, or dividends earned or
  8 29 declared on a security in an account, a reinvestment account,
  8 30 or a brokerage account, whether or not credited to the account
  8 31 before the owner's death.
  8 32    b.  A cash balance or other property held for or due to the
  8 33 owner of a security as a replacement for or product of an
  8 34 account security, whether or not credited to the account
  8 35 before the owner's death.
  9  1    8.  "State" includes any state of the United States, the
  9  2 District of Columbia, the Commonwealth of Puerto Rico, and any
  9  3 territory or possession subject to the legislative authority
  9  4 of the United States.
  9  5    Sec. 19.  NEW SECTION.  633.802  REGISTRATION IN
  9  6 BENEFICIARY FORM – SOLE OR JOINT TENANCY OWNERSHIP.
  9  7    Only an individual whose registration of a security shows
  9  8 sole ownership by one individual or multiple ownership by two
  9  9 or more individuals with a right of survivorship, rather than
  9 10 as tenants in common, may obtain registration in beneficiary
  9 11 form.  Multiple owners of a security registered in beneficiary
  9 12 form shall hold as joint tenants with rights of survivorship,
  9 13 tenants by the entireties, or owners of community property
  9 14 held in survivorship form and not as tenants in common.
  9 15    Sec. 20.  NEW SECTION.  633.803  REGISTRATION IN
  9 16 BENEFICIARY FORM – APPLICABLE LAW.
  9 17    1.  A security may be registered in beneficiary form if the
  9 18 form is authorized by this division or a similar statute of
  9 19 the state of any of the following:
  9 20    a.  The state of organization of the issuer or registering
  9 21 entity.
  9 22    b.  The state of location of the registering entity's
  9 23 principal office.
  9 24    c.  The state of location of the office of the entity's
  9 25 transfer agent or the office of the entity making the
  9 26 registration.
  9 27    d.  The state of the address listed as the owner's at the
  9 28 time of registration.
  9 29    2.  A registration governed by the law of a jurisdiction in
  9 30 which this division or a similar statute is not in force or
  9 31 was not in force when a registration in beneficiary form was
  9 32 made is presumed to be valid and authorized as a matter of
  9 33 contract law.
  9 34    Sec. 21.  NEW SECTION.  633.804  ORIGINATION OF
  9 35 REGISTRATION IN BENEFICIARY FORM.
 10  1    A security, whether evidenced by a certificate or account,
 10  2 is registered in beneficiary form when the registration
 10  3 includes a designation of a beneficiary to take the ownership
 10  4 at the death of the owner or the deaths of all multiple
 10  5 owners.
 10  6    Sec. 22.  NEW SECTION.  633.805  FORM OF REGISTRATION IN
 10  7 BENEFICIARY FORM.
 10  8    Registration in beneficiary form may be shown by any of the
 10  9 following, appearing after the name of the registered owner
 10 10 and before the name of a beneficiary:
 10 11    1.  The words "transfer on death" or the abbreviation
 10 12 "TOD".
 10 13    2.  The words "pay on death" or the abbreviation "POD".
 10 14    Sec. 23.  NEW SECTION.  633.806  EFFECT OF REGISTRATION IN
 10 15 BENEFICIARY FORM.
 10 16    The designation of a transfer on death or pay on death
 10 17 beneficiary on a registration in beneficiary form has no
 10 18 effect on ownership until the owner's death.  A registration
 10 19 of a security in beneficiary form may be canceled or changed
 10 20 at any time by the sole owner or all surviving owners without
 10 21 the consent of the beneficiary.
 10 22    Sec. 24.  NEW SECTION.  633.807  CLAIMS AGAINST A
 10 23 BENEFICIARY OF A TRANSFER ON DEATH SECURITY REGISTRATION.
 10 24    1.  If other assets of the estate of a deceased owner are
 10 25 insufficient to pay debts, taxes, and expenses of
 10 26 administration, including statutory allowances to the
 10 27 surviving spouse and children, a transfer at death of a
 10 28 security registered in beneficiary form is not effective
 10 29 against the estate of the deceased sole owner, or if multiple
 10 30 owners, against the estate of the last owner to die, to the
 10 31 extent needed to pay debts, taxes, and expenses of
 10 32 administration, including statutory allowances to the
 10 33 surviving spouse and children.
 10 34    2.  A beneficiary of a transfer on death security
 10 35 registration under this division is liable to account to the
 11  1 personal representative of the deceased owner for the value of
 11  2 the security as of the time of the deceased owner's death to
 11  3 the extent necessary to discharge debts, taxes, and expenses
 11  4 of administration, including statutory allowances to the
 11  5 surviving spouse and children.  A proceeding against a
 11  6 beneficiary to assert liability shall not be commenced unless
 11  7 the personal representative has received a written demand by
 11  8 the surviving spouse, a creditor, a child, or a person acting
 11  9 for a minor child of the deceased owner.
 11 10    3.  An action for an accounting under this section must be
 11 11 commenced within two years after the death of the owner.
 11 12    4.  A beneficiary against whom a proceeding is brought may
 11 13 elect to transfer to the personal representative the security
 11 14 registered in the name of the beneficiary if the beneficiary
 11 15 still owns the security, or the net proceeds received by the
 11 16 beneficiary upon disposition of the security by the
 11 17 beneficiary.  Such transfer fully discharges the beneficiary
 11 18 from all liability under this section.
 11 19    5.  A beneficiary against whom a proceeding for an
 11 20 accounting is brought may join as a party to the proceeding a
 11 21 beneficiary of any other security registered in beneficiary
 11 22 form by the deceased owner.
 11 23    6.  Amounts recovered by the personal representative with
 11 24 respect to a security shall be administered as part of the
 11 25 deceased owner's estate.
 11 26    7.  A district court in this state shall have subject
 11 27 matter jurisdiction over a claim against a designated
 11 28 beneficiary brought by the decedent's personal representative
 11 29 or by a claimant to an interest in a security registered under
 11 30 this division.  Any provision in a security registration form
 11 31 restricting jurisdiction over a claim, or restricting a choice
 11 32 of forum, to a forum outside this state is void.
 11 33    8.  In an action for an accounting brought under this
 11 34 section, where the deceased owner was domiciled in this state,
 11 35 the laws of this state shall apply.
 12  1    Sec. 25.  NEW SECTION.  633.808  DEATH OF THE OWNER.
 12  2    On the death of a sole owner or on the death of the sole
 12  3 surviving owner of multiple owners, the ownership of
 12  4 securities registered in beneficiary form passes to the
 12  5 beneficiary or beneficiaries who survive all owners.  On proof
 12  6 of death of all owners and compliance with any applicable
 12  7 requirements of the registering entity, a security registered
 12  8 in beneficiary form may be reregistered in the name of the
 12  9 beneficiary or beneficiaries who survived the death of all
 12 10 owners.  A registering entity shall provide notice to the
 12 11 department of revenue and finance of all reregistrations made
 12 12 pursuant to this division.  The notice shall include the name,
 12 13 address, and social security number of the decedent and all
 12 14 transferees.  Until the division of the security after the
 12 15 death of all owners, multiple beneficiaries surviving the
 12 16 death of all owners hold their interests as tenants in common.
 12 17 If no beneficiary survives the death of all owners, the
 12 18 security belongs to the estate of the deceased sole owner or
 12 19 the estate of the last to die of multiple owners.
 12 20    Sec. 26.  NEW SECTION.  633.809  PROTECTION OF REGISTERING
 12 21 ENTITY.
 12 22    1.  A registering entity is not required to offer or to
 12 23 accept a request for security registration in beneficiary
 12 24 form.  If a registration in beneficiary form is offered by a
 12 25 registering entity, the owner requesting registration in
 12 26 beneficiary form assents to the protections provided to the
 12 27 registering entity by this division.
 12 28    2.  By accepting a request for registration of a security
 12 29 in beneficiary form, the registering entity agrees that the
 12 30 registration in beneficiary form shall be implemented on the
 12 31 death of the deceased owners as provided in this division.
 12 32    3.  A registering entity is discharged from all claims to a
 12 33 security by the estate, creditors, heirs, or devisees of a
 12 34 deceased owner if the registering entity registers a transfer
 12 35 of the security in accordance with section 633.808 and does so
 13  1 in good faith reliance on all of the following:
 13  2    a.  The registration.
 13  3    b.  The provisions of this division.
 13  4    c.  Information provided by affidavit of the personal
 13  5 representative of the deceased owner, the surviving
 13  6 beneficiary, or the surviving beneficiary's representative, or
 13  7 other information available to the registering entity.
 13  8    The protections of this division do not extend to a
 13  9 reregistration or payment made after a registering entity has
 13 10 received written notice from any claimant to any interest in
 13 11 the security objecting to implementation of a registration in
 13 12 beneficiary form.  No other notice or other information
 13 13 available to the registering entity affects its right to
 13 14 protection under this division.
 13 15    4.  The protection provided by this division to the
 13 16 registering entity of a security does not affect the rights of
 13 17 beneficiaries in disputes between themselves and other
 13 18 claimants to ownership of the transferred security, its value,
 13 19 or its proceeds.
 13 20    Sec. 27.  NEW SECTION.  633.810  NONTESTAMENTARY TRANSFER
 13 21 ON DEATH.
 13 22    1.  A transfer on death resulting from a registration in
 13 23 beneficiary form shall be effective by reason of the contract
 13 24 regarding the registration between the owner and the
 13 25 registering entity under the provisions of this division, and
 13 26 is not testamentary.
 13 27    2.  The provisions of this division do not limit the rights
 13 28 of creditors or security owners against beneficiaries and
 13 29 other transferees under other laws of this state.
 13 30    Sec. 28.  NEW SECTION.  633.811  TERMS, CONDITIONS, AND
 13 31 FORMS FOR REGISTRATION.
 13 32    1.  A registering entity offering to accept registrations
 13 33 in beneficiary form may establish the terms and conditions
 13 34 under which the registering entity receives requests for
 13 35 either of the following:
 14  1    a.  Registration in beneficiary form.
 14  2    b.  Implementation of registrations in beneficiary form,
 14  3 including requests for cancellation of previously registered
 14  4 transfer on death or pay on death beneficiary designations and
 14  5 requests for reregistration to effect a change of beneficiary.
 14  6    2.  a.  The terms and conditions established by the
 14  7 registering entity may provide for proving death, avoiding or
 14  8 resolving problems concerning fractional shares, designating
 14  9 primary and contingent beneficiaries, and substituting a named
 14 10 beneficiary's descendants to take in place of the named
 14 11 beneficiary in the event of the beneficiary's death.
 14 12 Substitution may be indicated by appending to the name of the
 14 13 beneficiary the letters "LDPS" standing for "lineal
 14 14 descendants per stirpes".  This designation shall substitute a
 14 15 deceased beneficiary's descendants who survive the owner for a
 14 16 beneficiary who fails to survive, with the descendants to be
 14 17 identified and to share in accordance with the law of the
 14 18 beneficiary's domicile at the owner's death governing
 14 19 inheritance by descendants of an intestate.  Other forms of
 14 20 identifying beneficiaries who are to take on one or more
 14 21 contingencies, and rules for providing proofs and assurances
 14 22 needed to satisfy reasonable concerns by registering entities
 14 23 regarding conditions and identities relevant to accurate
 14 24 implementation of registrations in beneficiary form, may be
 14 25 contained in a registering entity's terms and conditions.
 14 26    b.  The following are illustrations of registrations in
 14 27 beneficiary form which a registering entity may authorize:
 14 28    (1)  Sole owner-sole beneficiary:  OWNER'S NAME transfer on
 14 29 death (TOD) or pay on death (POD) to BENEFICIARY'S NAME.
 14 30    (2)  Multiple owners-sole beneficiary:  OWNERS' NAMES, as
 14 31 joint tenants or tenants in the entirety, transfer on death
 14 32 (TOD) or pay on death (POD) to BENEFICIARY'S NAME.
 14 33    (3)  Multiple owners-primary and secondary (substituted)
 14 34 beneficiaries:  OWNERS' NAMES as joint tenants or tenants in
 14 35 the entirety, transfer on death (TOD) or pay on death (POD) to
 15  1 BENEFICIARY'S NAME, or lineal descendants per stirpes.
 15  2    Sec. 29.  APPLICATION.  The provisions of this division
 15  3 apply to registrations of securities in beneficiary form made
 15  4 before, on, or after the effective date of this Act, by
 15  5 decedents dying on or after the effective date of this Act.  
 15  6 
 15  7 
 15  8                                                             
 15  9                               MARY E. KRAMER
 15 10                               President of the Senate
 15 11 
 15 12 
 15 13                                                             
 15 14                               RON J. CORBETT
 15 15                               Speaker of the House
 15 16 
 15 17    I hereby certify that this bill originated in the Senate and
 15 18 is known as Senate File 241, Seventy-seventh General Assembly.
 15 19 
 15 20 
 15 21                                                             
 15 22                               MARY PAT GUNDERSON
 15 23                               Secretary of the Senate
 15 24 Approved                , 1997
 15 25 
 15 26 
 15 27                         
 15 28 TERRY E. BRANSTAD
 15 29 Governor
     
Text: SF00240                           Text: SF00242
Text: SF00200 - SF00299                 Text: SF Index
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