HB 529 - Deceased intestate depositors; release of funds

Georgia House of Representatives - 1995/1996 Sessions

HB 529 - Deceased intestate depositors; release of funds

Page Numbers - 1/ 2/ 3
Code Sections - 7-1-239
Prev Bill Next Bill Bill Summary Bill List Disclaimer
1. Williams  83rd         2. Watson  139th           3. Ray  128th
4. Bargeron  120th        5. Benefield  96th         6. Lee  94th

House Comm: B&B / Senate Comm: / House Vote: Yeas Nays Senate Vote: Yeas Nays ---------------------------------------- House Action Senate ---------------------------------------- 2/1/95 Read 1st Time 2/2/95 Read 2nd Time 2/21/95 Favorably Reported 3/6/95 Recommitted 3/6/95 Read 3rd Time ---------------------------------------- Code Sections amended: 7-1-239
HB 529 LC 15 3995 A BILL TO BE ENTITLED AN ACT 1- 1 To amend Part 12 of Article 1 of Chapter 1 of Title 7 of the 1- 2 Official Code of Georgia Annotated, relating to deposits of 1- 3 deceased depositors, so as to increase the amount of funds a 1- 4 financial institution may release to certain persons when a 1- 5 depositor dies intestate; to provide for an effective date 1- 6 and for applicability; to repeal conflicting laws; and for 1- 7 other purposes. 1- 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. 1- 9 Part 12 of Article 1 of Chapter 1 of Title 7 of the Official 1-10 Code of Georgia Annotated, relating to deposits of deceased 1-11 depositors, is amended by striking Code Section 7-1-239, 1-12 relating to the payment of large deposits of deceased 1-13 intestate depositors and deposits of sums held for deceased 1-14 intestate residents, and inserting in lieu thereof a new 1-15 Code Section 7-1-239 to read as follows: 1-16 "7-1-239. (Index) 1-17 (a) Except as provided in subsection (b) of this Code 1-18 section and in Article 8 of this chapter, whenever any 1-19 person dies intestate having a deposit of not more than 1-20 $2,500.00 $10,000.00 in a financial institution, such 1-21 financial institution shall be authorized to pay the 1-22 proceeds of such deposit directly to the following 1-23 persons: 1-24 (1) To the surviving spouse; 1-25 (2) If no surviving spouse, to the children pro rata; 1-26 (3) If no children or surviving spouse, to the father 1-27 and mother pro rata; or 1-28 (4) If none of the above, then to the brothers and 1-29 sisters of the decedent pro rata. 1-30 (b) Except as provided in Article 8 of this chapter, if no 1-31 application for the deposit is made by any person named in dd d���@dF��@d���@d��@d{��@d���@d LC 15 3995 2- 1 subsection (a) of this Code section within 90 days from 2- 2 the death of the depositor, the financial institution 2- 3 shall be authorized to apply not more than $2,500.00 2- 4 $10,000.00 of the deposit of such deceased depositor in 2- 5 payment of the funeral expenses and expenses of the last 2- 6 illness of such deceased depositor upon the receipt of 2- 7 itemized statements of such expenses and the affidavit of 2- 8 the providers of such services that the itemized 2- 9 statements are true and correct and have not been paid. 2-10 The financial institution shall pay such expenses in the 2-11 order received after the death of the depositor. 2-12 (c) Payments pursuant to subsections (a) and (b) of this 2-13 Code section shall operate as a complete acquittal and 2-14 discharge to the financial institution of liability from 2-15 any suit, claim, or demand of whatever nature by any heir, 2-16 distributee, creditor of the decedent, or any other 2-17 person. Such payment is authorized to be made as provided 2-18 in this Code section without the necessity of 2-19 administration of the estate of the decedent or without 2-20 the necessity of obtaining an order that no administration 2-21 is necessary. 2-22 (d) In any case in which a deceased depositor has more 2-23 than $2,500.00 $10,000.00 on deposit in a financial 2-24 institution, such financial institution shall be 2-25 authorized to pay any amount up to $2,500.00 $10,000.00 to 2-26 any of the persons authorized by this Code section to 2-27 receive said deposit. The payment shall only act as a 2-28 full and final acquittance of liability up to the amount 2-29 paid by the financial institution and shall not act as a 2-30 full and final acquittance to the financial institution of 2-31 all liability. 2-32 (e) Notwithstanding any other provisions of law to the 2-33 contrary, when any person dies intestate as a resident of 2-34 this state and any person is left in possession of moneys 2-35 belonging to the decedent, which moneys do not exceed 2-36 $2,500.00 $10,000.00, such person shall deposit such 2-37 moneys into a savings account in the name of the decedent 2-38 in a financial institution located in the area of the 2-39 decedent's residence. Such account shall be managed in 2-40 accordance with the signature contract in effect at the 2-41 financial institution at the time the account is opened. 2-42 Any financial institution receiving such deposits is 2-43 authorized to pay the proceeds in accordance with 2-44 subsections (a), (b), (c), and (d) of this Code section. -2- (Index) LC 15 3995 3- 1 (f) As used in this Code section, the term 'financial 3- 2 institution' includes any federally chartered financial 3- 3 institution." SECTION 2. 3- 4 This Act shall become effective upon its approval by the 3- 5 Governor or upon its becoming law without such approval. 3- 6 This Act shall apply with respect to deposits and funds of 3- 7 persons dying on or after that effective date. SECTION 3. 3- 8 All laws and parts of laws in conflict with this Act are 3- 9 repealed. -3- (Index)

Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97