H.F. 940 Section 1. NEW SECTION . 633.359 Beneficiary notice —— 1 affidavits —— third-party protection. 2 1. For purposes of this section, “beneficiary designation” 3 means the same as defined in section 633.358, subsection 1. 4 2. If the holder of property that has a beneficiary 5 designation has been notified of the death of the owner of the 6 property, the holder of property shall within ten business days 7 provide notice to each person listed under the beneficiary 8 designation that the person may have a right to the property 9 and provide the person with the contact information of the 10 holder of the property. 11 3. A person listed under the beneficiary designation may 12 present an affidavit to the holder of the property or to any 13 person with information about the property for the purpose of 14 obtaining the property or information regarding the property. 15 The affidavit must state all of the following: 16 a. The decedent’s name and last known address. 17 b. A general description of the property to the extent 18 known. 19 c. The person listed under the beneficiary designation’s 20 name, address, and primary contact information. 21 d. A request that the property be paid or transferred to 22 the person listed under the beneficiary designation or that 23 information about the property be given to the person listed 24 under the beneficiary designation. 25 e. No one other than the person listed under the beneficiary 26 designation has a right to the interest in the property listed 27 in the affidavit. 28 f. The affidavit has been signed by the person listed under 29 the beneficiary designation under penalty of perjury before a 30 notary public as provided in chapter 9B. 31 g. The information in the affidavit is true and correct. 32 4. The holder of the property shall not request any 33 additional personal information from the person listed under 34 the beneficiary designation, including but not limited to any 35 -1- LSB 2737HV (1) 91 cm/jh 1/ 5

H.F. 940 of the following: 1 a. Social security number or driver’s license number. 2 b. Contact information. 3 c. Personal financial information. 4 5. If the requirements of this section are satisfied, all 5 of the following apply: 6 a. The decedent’s property shall be paid, delivered, or 7 transferred to or for the benefit of the person listed under 8 the beneficiary designation if the affidavit has requested the 9 transfer of ownership of the property to the person. 10 b. A transfer agent of a security described in the 11 affidavit shall change registered ownership on the books of 12 the corporation from the decedent to or for the benefit of 13 the person listed under the beneficiary designation if the 14 affidavit has requested the transfer of ownership of the 15 property to the person. 16 c. The information requested in the affidavit shall be 17 delivered to the person. 18 6. The holder of the property and any person who in good 19 faith delivers the property or information requested in 20 reliance on information a person listed under the beneficiary 21 designation provides under this section, who has no knowledge 22 that representations contained in the affidavit are incorrect, 23 shall not be liable to any person for so acting and may assume 24 without inquiry the existence of the facts contained in the 25 affidavit. The time to verify a person listed under the 26 beneficiary designation authority shall not exceed thirty days 27 from the date of delivery of the affidavit. Any right or 28 title acquired from the person listed under the beneficiary 29 designation in consideration of the provision of property or 30 information under this section is not invalid in consequence 31 of misapplication by the person listed under the beneficiary 32 designation. A transaction and a lien created by a transaction 33 entered into by the person listed under the beneficiary 34 designation and anyone acting in reliance on the affidavit 35 -2- LSB 2737HV (1) 91 cm/jh 2/ 5

H.F. 940 under this section is enforceable against the property the 1 person has requested. 2 7. If the holder of the property refuses to provide 3 the requested property or information within thirty days 4 after receiving the affidavit, the person listed under the 5 beneficiary designation may bring an action against the 6 holder of the property to recover the property or receive the 7 information or to compel the delivery of the property. An 8 action brought under this section must be brought within one 9 year after the date of the act or failure to act. If the court 10 finds that the holder of the property acted unreasonably in 11 failing to deliver the property or information as requested in 12 the affidavit, the court may award to the person listed under 13 the beneficiary designation any or all of the following: 14 a. Damages sustained by the person. 15 b. Costs of the action. 16 c. A penalty in an amount determined by the court between 17 five hundred dollars and ten thousand dollars. 18 d. Reasonable attorney fees based on the value of the time 19 reasonably expended by the attorney and not by the amount of 20 the recovery on behalf of the person. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill relates to probate law regarding notice provided 25 to named beneficiaries. The bill provides that if a holder of 26 property that has a beneficiary designation owned by a decedent 27 has been notified of the death of the decedent, the property 28 holder shall within 10 business days notify each person listed 29 under the beneficiary designation that the person may have a 30 right to the property and provide contact information of the 31 holder. For purposes of the bill, beneficiary designation 32 means the provision in an instrument designating a beneficiary, 33 including an annuity or insurance policy, an account with a 34 designation for payment on death, a security registered in 35 -3- LSB 2737HV (1) 91 cm/jh 3/ 5

H.F. 940 beneficiary form, a pension, profit-sharing, retirement, or 1 other employment-related benefit plan, and any other nonprobate 2 transfer at death. 3 The bill allows a person listed under the beneficiary 4 designation to present an affidavit to any person for the 5 purpose of obtaining property, or information regarding 6 property, owned by a decedent for which the person is a 7 designated beneficiary. The bill provides the representations 8 and requirements of the affidavit presented. The bill 9 prohibits a person from requesting any additional personal 10 information of a person listed under the beneficiary 11 designation. 12 The bill provides that upon completion of the bill’s 13 requirements, the person listed under the beneficiary 14 designation shall receive the decedent’s property as the 15 beneficiary and a transfer agent of a security described in the 16 affidavit shall change registered ownership on the books of 17 the corporation from the decedent to or for the benefit of the 18 successor. The bill provides that a person in good faith that 19 relies upon and has no knowledge that the representations in 20 the affidavit are incorrect shall not be liable to any person 21 for so acting in reliance of the affidavit. The person who 22 received the request has 30 days to verify the affidavit and 23 provide the information or requested property to the person 24 listed under the beneficiary designation. Upon failing to do 25 so, the person listed under the beneficiary designation may 26 bring an action to recover the property, information, or to 27 compel the delivery of the property against the person to whom 28 the person listed under the beneficiary designation presented 29 the affidavit. The bill allows an action to be brought within 30 one year after the date of the act or failure to act. If the 31 person listed under the beneficiary designation prevails in the 32 court action, the court may also award damages sustained, costs 33 of the action, a penalty determined by the court of not less 34 than $500 and not more than $10,000, and reasonable attorney 35 -4- LSB 2737HV (1) 91 cm/jh 4/ 5