78R7407 MTB-D
By: Paxton H.B. No. 2238
A BILL TO BE ENTITLED
AN ACT
relating to multiple-party accounts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 438A, Texas Probate Code, is amended by
amending Subsections (a), (c), (d), (e), (f), and (g) to read as
follows:
(a) If an account is established at a financial institution
by one or more parties [a party] in the names of the parties [party]
and one or more cosigners [a cosigner] and the terms of the account
provide that the sums on deposit are paid or delivered to the
parties [party] or to the cosigners [cosigner] "for the
convenience" of the parties [party], the account is a convenience
account.
(c) A [The] party to a convenience account is not considered
to have made a gift [of one-half] of the deposit or of any additions
or accruals to the deposit to a [the] cosigner.
(d) On the death of the last surviving party, a [the]
cosigner shall have no right of survivorship in the account and
ownership of the account remains in the estate of the last surviving
party.
(e) If an addition is made to the account by anyone other
than a [the] party, the addition and accruals to the addition are
considered to have been made by a [the] party.
(f) All deposits to a convenience account and additions and
accruals to the deposits may be paid to a [the] party or to a [the]
cosigner. The financial institution is completely released from
liability for a payment made from the account before the financial
institution receives notice in writing signed by a [the] party not
to make the payment in accordance with the terms of the account.
After receipt of the notice from a [the] party, the financial
institution may require a [the] party to approve any further
payments from the account.
(g) If the financial institution makes a payment of the sums
on deposit in a convenience account to a [the] cosigner after the
death of the last surviving party and before the financial
institution has received written notice of the last surviving
party's death, the financial institution is completely released
from liability for the payment. If a financial institution makes
payment to the personal representative of the deceased last
surviving party's estate after the death of the last surviving
party and before service on the financial institution of a court
order prohibiting payment, the financial institution is released to
the extent of the payment from liability to any person claiming a
right to the funds. The receipt by the representative to whom
payment is made is a complete release and discharge of the financial
institution.
SECTION 2. Part 1, Chapter XI, Texas Probate Code, is
amended by adding Section 438B to read as follows:
Sec. 438B. CONVENIENCE SIGNER. (a) If an account is
established at a financial institution by one or more parties and
the written terms of the account authorize a person who is not a
party to the account to make deposits, request payments, and
otherwise transact business on the account for the convenience of
the parties, the person is a convenience signer. An account may have
more than one convenience signer.
(b) A convenience signer is not a party to an account and has
no ownership interest in the account. A party to an account is not
considered to have made a gift of any portion of the deposit or of
any additions or accruals to the deposit to the convenience signer.
(c) On the death of the last surviving party, a convenience
signer has no right of survivorship in the account and ownership of
the account is determined as if there was no convenience signer on
the account. A convenience signer who is also a P.O.D. payee on a
P.O.D. account or a beneficiary of a trust account becomes a party
to the account only after the account becomes payable to the
convenience signer because the convenience signer survived the
original payees or trustees.
(d) The financial institution is completely released from
liability for a payment made from an account at the request of a
convenience signer before the financial institution receives
notice in writing signed by a party not to make the payment in
accordance with the terms of the account or otherwise terminating
the convenience signer's authority with respect to the account.
After receipt of the notice from a party, the financial institution
may require a party to approve any further payments from the
account.
(e) On the death of the last surviving party to an account,
the authority of a convenience signer with respect to the account
ceases. If the financial institution makes a payment of the sums on
deposit at the request of a convenience signer after the death of
the last surviving party and before the financial institution has
received written notice of the last surviving party's death, the
financial institution is completely released from liability for the
payment.
SECTION 3. Section 439A(b), Texas Probate Code, is amended
to read as follows:
(b) A financial institution may use the following form to
establish the type of account selected by a party:
UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT SELECTION
FORM NOTICE: The type of account you select may determine how
property passes on your death. Your will may not control the
disposition of funds held in some of the following accounts.
Select one of the following accounts by placing your initials next
to the account selected:
___ (1) SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON
DEATH) DESIGNATION. The party to the account owns the account. On
the death of the party, ownership of the account passes as a part of
the party's estate under the party's will or by intestacy.
Enter the name of the party:
______________________________
___ (2) SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON DEATH)
DESIGNATION. The party to the account owns the account. On the
death of the party, ownership of the account passes to the P.O.D.
beneficiaries of the account. The account is not a part of the
party's estate.
Enter the name of the party:
______________________________
Enter the name or names of the P.O.D. beneficiaries:
______________________________
______________________________
___ (3) MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF
SURVIVORSHIP. The parties to the account own the account in
proportion to the parties' net contributions to the account. The
financial institution may pay any sum in the account to a party at
any time. On the death of a party, the party's ownership of the
account passes as a part of the party's estate under the party's
will or by intestacy.
Enter the names of the parties:
______________________________
______________________________
______________________________
___ (4) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP.
The parties to the account own the account in proportion to the
parties' net contributions to the account. The financial
institution may pay any sum in the account to a party at any time.
On the death of a party, the party's ownership of the account passes
to the surviving parties.
Enter the names of the parties:
______________________________
______________________________
___ (5) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP AND
P.O.D. (PAYABLE ON DEATH) DESIGNATION. The parties to the account
own the account in proportion to the parties' net contributions to
the account. The financial institution may pay any sum in the
account to a party at any time. On the death of the last surviving
party, the ownership of the account passes to the P.O.D.
beneficiaries.
Enter the names of the parties:
______________________________
______________________________
Enter the name or names of the P.O.D. beneficiaries:
______________________________
______________________________
___ (6) CONVENIENCE ACCOUNT. The parties [party] to the
account own [owns] the account. One or more cosigners [The
cosigner] to the account may make account transactions for a [the]
party. A [The] cosigner does not own the account. On the death of
the last surviving party, ownership of the account passes as a part
of the last surviving party's estate under the last surviving
party's will or by intestacy. The financial institution may pay
funds in the account to a [the] cosigner before the financial
institution receives notice of the death of the last surviving
party. The payment to a [the] cosigner does not affect the parties'
[party's] ownership of the account.
Enter the names [name] of the parties [party]:
______________________________
______________________________
Enter the names [name] of the cosigners [cosigner]:
______________________________
______________________________
___ (7) TRUST ACCOUNT. The parties named as trustees to the
account own the account in proportion to the parties' net
contributions to the account. A trustee may withdraw funds from the
account. A beneficiary may not withdraw funds from the account
before all trustees are deceased. On the death of the last
surviving trustee, the ownership of the account passes to the
beneficiary. The trust account is not a part of a trustee's estate
and does not pass under the trustee's will or by intestacy, unless
the trustee survives all of the beneficiaries and all other
trustees.
Enter the name or names of the trustees:
______________________________
______________________________
Enter the name or names of the beneficiaries:
______________________________
______________________________
SECTION 4. This Act takes effect September 1, 2003, and
applies only to an account created on or after the effective date of
this Act. An account created before the effective date of this Act
is covered by the law in effect when the account was created, and
the former law is continued in effect for that purpose.