Text: HF02207 Text: HF02209 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 524.805, subsection 8, Code 2001, is 1 2 amended to read as follows: 1 3 8. A state bank may receive deposits from one or more 1 4 persons with the provision that upon the death of the 1 5 depositors the deposit account shall be the property of the 1 6 person or persons designated by the deceased depositors as 1 7 shown on the deposit account records of the state bank.The1 8account is subject to the debts of the deceased depositors and1 9the payment of Iowa inheritance tax provided, that upon the1 10expiration of six months after the date of death of the1 11deceased depositors, the receipt or acquittance of the persons1 12designated is a valid and sufficient release and discharge of1 13the state bank for the delivery of any part or all of the1 14account.A state bank paying the deposit account proceeds to 1 15 the person or persons designated by the deceased depositors 1 16 shall not be liable as a result of that action for any debts 1 17 of the decedent or for any estate, inheritance, or succession 1 18 taxes which may be due the state. After such payment by the 1 19 state bank to the person or persons designated by the deceased 1 20 depositors, the proceeds shall remain subject to the debts of 1 21 the decedent and the payment of Iowa inheritance tax, if any. 1 22 Sec. 2. Section 633.801, subsection 7, Code 2001, is 1 23 amended to read as follows: 1 24 7. "Security account" meanseitherany of the following: 1 25 a. Any of the following: 1 26 (1) A reinvestment account associated with a security. 1 27 (2) A securities account with a broker. 1 28 (3) A cash balance in a brokerage account. 1 29 (4) Cash, interest, earnings, or dividends earned or 1 30 declared on a security in an account, a reinvestment account, 1 31 or a brokerage account, whether or not credited to the account 1 32 before the owner's death. 1 33 b. A cash balance or other property held for or due to the 1 34 owner of a security as a replacement for or product of an 1 35 account security, whether or not credited to the account 2 1 before the owner's death. 2 2 c. An investment management or custody account with a 2 3 bank, trust company, or a trust division of a bank with trust 2 4 powers, including the securities in the account, cash balance 2 5 in the account, cash, cash equivalents, interest, earnings, 2 6 and dividends earned or declared on a security in the account 2 7 whether or not credited to the account before the owner's 2 8 death. For purposes of this paragraph, "bank" means an entity 2 9 as defined in section 12C.1. 2 10 EXPLANATION 2 11 This bill makes changes to two Code provisions regarding 2 12 deposit and investment accounts. 2 13 The bill amends language in Code section 524.805 that 2 14 currently provides that the deposit account is subject to the 2 15 debts of the deceased depositor and Iowa inheritance tax only, 2 16 and can be released only after six months following the death 2 17 of the depositor. The bill removes the six-month time period, 2 18 and provides that state bank paying the deposit account 2 19 proceeds to persons designated by the deceased depositor is 2 20 not liable for the debts of the decedent, or for any 2 21 inheritance taxes. The bill also provides that the deposit 2 22 account proceeds are subject to the payment of the decedent's 2 23 debts and inheritance tax after such payment by the state 2 24 bank. 2 25 The bill also adds a new paragraph to a subsection in Code 2 26 section 633.801, which defines "security account". The 2 27 section is part of Iowa's probate code, and, according to Code 2 28 section 633.800, part of the uniform transfer on death 2 29 security registration Act. The new paragraph provides an 2 30 additional definition for "security account", an investment 2 31 management or custody account with a bank, trust company, or 2 32 trust division of a bank with trust powers containing certain 2 33 items. The effect of adding such bank and trust accounts to 2 34 Code section 633.801 is to make them eligible for registration 2 35 in beneficiary form, so that the items in the account pass to 3 1 the beneficiary at the owner's death, pursuant to the terms of 3 2 Code sections 633.800 through 633.811. 3 3 LSB 5407HV 79 3 4 jj/cf/24
Text: HF02207 Text: HF02209 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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