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A BILL TO BE ENTITLED
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AN ACT
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relating to the designation of convenience signers on certain |
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accounts established at financial institutions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Part 1, Chapter XI, Texas Probate Code, is |
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amended by adding Section 438B to read as follows: |
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Sec. 438B. CONVENIENCE SIGNER ON OTHER ACCOUNTS. (a) An |
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account established by one or more parties at a financial |
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institution that is not designated as a convenience account, but is |
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instead designated as a single-party account or another type of |
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multiple-party account, may provide that the sums on deposit may be |
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paid or delivered to the parties or to one or more convenience |
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signers "for the convenience of the parties." |
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(b) Except as provided by Subsection (c) of this section: |
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(1) the provisions of Section 438A of this chapter |
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apply to an account described by Subsection (a) of this section, |
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including provisions relating to the ownership of the account |
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during the lifetimes and on the deaths of the parties and provisions |
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relating to the powers and duties of the financial institution at |
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which the account is established; and |
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(2) any other law relating to a convenience signer |
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applies to a convenience signer designated as provided by this |
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section to the extent the law applies to a convenience signer on a |
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convenience account. |
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(c) On the death of the last surviving party to an account |
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that has a convenience signer designated as provided by this |
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section, the convenience signer does not have a right of |
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survivorship in the account and the estate of the last surviving |
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party owns the account unless the convenience signer is also |
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designated as a P.O.D. payee or as a beneficiary. |
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SECTION 2. Sections 439A(a) and (b), Texas Probate Code, |
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are amended to read as follows: |
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(a) A contract of deposit that contains provisions |
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substantially the same as in the form provided by Subsection (b) of |
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this section establishes the type of account selected by a party. |
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The provisions of this part of Chapter XI of this code govern an |
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account selected under the form[, other than a single-party account
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without a P.O.D. designation]. A contract of deposit that does not |
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contain provisions substantially the same as in the form provided |
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by Subsection (b) of this section is governed by the provisions of |
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this chapter applicable to the account that most nearly conforms to |
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the depositor's intent. |
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(b) A financial institution may use the following form to |
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establish the type of account selected by a party: |
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UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT SELECTION |
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FORM NOTICE: The type of account you select may determine how |
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property passes on your death. Your will may not control the |
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disposition of funds held in some of the following accounts. You |
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may choose to designate one or more convenience signers on an |
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account, even if the account is not a convenience account. A |
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designated convenience signer may make transactions on your behalf |
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during your lifetime, but does not own the account during your |
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lifetime. The designated convenience signer owns the account on |
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your death only if the convenience signer is also designated as a |
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P.O.D. payee or trust account beneficiary. |
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Select one of the following accounts by placing your initials |
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next to the account selected: |
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___ (1) SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON |
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DEATH) DESIGNATION. The party to the account owns the account. On |
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the death of the party, ownership of the account passes as a part of |
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the party's estate under the party's will or by intestacy. |
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Enter the name of the party: |
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______________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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______________________________ |
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______________________________ |
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___ (2) SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON |
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DEATH) DESIGNATION. The party to the account owns the account. On |
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the death of the party, ownership of the account passes to the |
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P.O.D. beneficiaries of the account. The account is not a part of |
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the party's estate. |
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Enter the name of the party: |
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______________________________ |
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Enter the name or names of the P.O.D. beneficiaries: |
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______________________________ |
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______________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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______________________________ |
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______________________________ |
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___ (3) MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF |
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SURVIVORSHIP. The parties to the account own the account in |
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proportion to the parties' net contributions to the account. The |
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financial institution may pay any sum in the account to a party at |
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any time. On the death of a party, the party's ownership of the |
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account passes as a part of the party's estate under the party's |
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will or by intestacy. |
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Enter the names of the parties: |
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______________________________ |
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______________________________ |
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______________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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______________________________ |
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______________________________ |
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___ (4) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP. |
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The parties to the account own the account in proportion to the |
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parties' net contributions to the account. The financial |
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institution may pay any sum in the account to a party at any time. |
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On the death of a party, the party's ownership of the account passes |
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to the surviving parties. |
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Enter the names of the parties: |
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______________________________ |
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______________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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______________________________ |
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______________________________ |
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___ (5) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP |
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AND P.O.D. (PAYABLE ON DEATH) DESIGNATION. The parties to the |
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account own the account in proportion to the parties' net |
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contributions to the account. The financial institution may pay |
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any sum in the account to a party at any time. On the death of the |
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last surviving party, the ownership of the account passes to the |
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P.O.D. beneficiaries. |
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Enter the names of the parties: |
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______________________________ |
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______________________________ |
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Enter the name or names of the P.O.D. beneficiaries: |
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______________________________ |
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______________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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______________________________ |
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______________________________ |
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___ (6) CONVENIENCE ACCOUNT. The parties to the account own |
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the account. One or more convenience signers to the account may |
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make account transactions for a party. A convenience signer does |
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not own the account. On the death of the last surviving party, |
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ownership of the account passes as a part of the last surviving |
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party's estate under the last surviving party's will or by |
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intestacy. The financial institution may pay funds in the account |
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to a convenience signer before the financial institution receives |
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notice of the death of the last surviving party. The payment to a |
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convenience signer does not affect the parties' ownership of the |
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account. |
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Enter the names of the parties: |
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______________________________ |
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______________________________ |
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Enter the name(s) [names] of the convenience signer(s) |
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[signers]: |
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______________________________ |
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______________________________ |
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___ (7) TRUST ACCOUNT. The parties named as trustees to the |
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account own the account in proportion to the parties' net |
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contributions to the account. A trustee may withdraw funds from the |
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account. A beneficiary may not withdraw funds from the account |
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before all trustees are deceased. On the death of the last |
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surviving trustee, the ownership of the account passes to the |
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beneficiary. The trust account is not a part of a trustee's estate |
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and does not pass under the trustee's will or by intestacy, unless |
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the trustee survives all of the beneficiaries and all other |
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trustees. |
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Enter the name or names of the trustees: |
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______________________________ |
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______________________________ |
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Enter the name or names of the beneficiaries: |
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______________________________ |
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______________________________ |
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Enter the name(s) of the convenience signer(s), if you want |
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one or more convenience signers on this account: |
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______________________________ |
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______________________________ |
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SECTION 3. The changes in law made by this Act apply to an |
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account with a financial institution for which a convenience signer |
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is designated, regardless of whether the account was established or |
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the convenience signer was designated before, on, or after the |
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effective date of this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |