Text: SSB03059                          Text: SSB03061
Text: SSB03000 - SSB03099               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

Senate Study Bill 3060

Bill Text

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 the
  1 10 expiration of six months after the date of death of the
  1 11 deceased 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" means either any 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 5407SC 79
  2 29 jj/cf/24
     

Text: SSB03059                          Text: SSB03061
Text: SSB03000 - SSB03099               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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