Text: HSB00516 Text: HSB00518 Text: HSB00500 - HSB00599 Text: HSB 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. The 1 8 account is subject to the debts of the deceased depositors and 1 9 the 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 persons 1 12 designated is a valid and sufficient release and discharge of 1 13 the state bank for the delivery of any part or all of the 1 14 account. 1 15 Sec. 2. Section 633.801, subsection 7, Code 2001, is 1 16 amended to read as follows: 1 17 7. "Security account" meanseitherany of the following: 1 18 a. Any of the following: 1 19 (1) A reinvestment account associated with a security. 1 20 (2) A securities account with a broker. 1 21 (3) A cash balance in a brokerage account. 1 22 (4) Cash, interest, earnings, or dividends earned or 1 23 declared on a security in an account, a reinvestment account, 1 24 or a brokerage account, whether or not credited to the account 1 25 before the owner's death. 1 26 b. A cash balance or other property held for or due to the 1 27 owner of a security as a replacement for or product of an 1 28 account security, whether or not credited to the account 1 29 before the owner's death. 1 30 c. An investment management or custody account with a 1 31 bank, trust company, or a trust division of a bank with trust 1 32 powers, including the securities in the account, cash balance 1 33 in the account, cash, cash equivalents, interest, earnings, 1 34 and dividends earned or declared on a security in the account 1 35 whether or not credited to the account before the owner's 2 1 death. For purposes of this paragraph, "bank" means an entity 2 2 as defined in section 12C.1. 2 3 EXPLANATION 2 4 This bill makes changes to two Code provisions regarding 2 5 deposit and investment accounts. 2 6 The bill amends language in Code section 524.805 currently 2 7 providing that the deposit account is subject to the debts of 2 8 the deceased depositor and Iowa inheritance tax only after six 2 9 months following the death of the depositor. The bill removes 2 10 the time period requirement, and provides that the account is 2 11 subject to the payment of the decedent's debts and inheritance 2 12 tax upon a valid release of the bank, for delivery of all or 2 13 part of the account, by the persons designated to receive the 2 14 account from the state bank. 2 15 The bill also adds a new paragraph to a subsection in Code 2 16 section 633.801, which defines "security account". The 2 17 section is part of Iowa's probate Code, and, according to Code 2 18 section 633.800, part of the uniform transfer on death 2 19 security registration Act. The new paragraph provides an 2 20 additional definition for "security account", an investment 2 21 management or custody account with a bank, trust company, or 2 22 trust division of a bank with trust powers containing certain 2 23 items. The effect of adding such bank and trust accounts to 2 24 Code section 633.801 is to make them eligible for registration 2 25 in beneficiary form, so that the items in the account pass to 2 26 the beneficiary at the owner's death, pursuant to the terms of 2 27 Code sections 633.800 through 633.811. 2 28 LSB 5407HC 79 2 29 jj/cf/24
Text: HSB00516 Text: HSB00518 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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