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