|HB 1531 - Uniform Transfer on Death Security Registration Act; enact|
First Reader Summary
A BILL to amend Chapter 5 of Title 53 of the Official Code of
Georgia Annotated, relating to probate, so as to enact the
"Uniform Transfer on Death Security Registration Act"; and for
Page Numbers -
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HB 1531 LC 26 0582
A BILL TO BE ENTITLED
1- 1 To amend Chapter 5 of Title 53 of the Official Code of
1- 2 Georgia Annotated, relating to probate, so as to enact the
1- 3 "Uniform Transfer on Death Security Registration Act"; to
1- 4 provide for a short title; to provide for definitions; to
1- 5 provide for registration in beneficiary form with respect to
1- 6 certain types of ownership; to provide for applicable state
1- 7 law; to provide for origination of registration; to provide
1- 8 for form and effect of registration; to provide for
1- 9 ownership on death of owner; to provide for protection of
1-10 registering entities; to provide for nontestamentary
1-11 transfer on death; to provide for terms, conditions, and
1-12 forms for registration; to provide for applicability; to
1-13 provide for related matters; to provide an effective date;
1-14 to repeal conflicting laws; and for other purposes.
1-15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-16 SECTION 1.
1-17 Chapter 5 of Title 53 of the Official Code of Georgia
1-18 Annotated, relating to probate, as such chapter becomes
1-19 effective on January 1, 1998, is amended by inserting at the
1-20 end thereof a new article to read as follows:
1-22 This article shall be known and may be cited as the
1-23 'Uniform Transfer on Death Security Registration Act.'
1-25 As used in this article, the term:
1-26 (1) 'Beneficiary form' means a registration of a
1-27 security which indicates the present owner of the
1-28 security and the intention of the owner regarding the
1-29 person who will become the owner of the security upon
1-30 the death of the owner.
2- 1 (2) 'Register,' including its derivatives, means to
2- 2 issue a certificate showing the ownership of a
2- 3 certificated security or, in the case of an
2- 4 uncertificated security, to initiate or transfer an
2- 5 account showing ownership of securities.
2- 6 (3) 'Registering entity' means a person who originates
2- 7 or transfers a security title by registration and
2- 8 includes a broker maintaining security accounts for
2- 9 customers and a transfer agent or other person acting
2-10 for or as an issuer of securities.
2-11 (4) 'Security' means a share, participation, or other
2-12 interest in property, in a business, or in an obligation
2-13 of an enterprise or other issuer and includes a
2-14 certificated security, an uncertificated security, and a
2-15 security account.
2-16 (5) 'Security account' means:
2-17 (A) A reinvestment account associated with a security,
2-18 a securities account with a broker, a cash balance in
2-19 a brokerage account, cash, interest, earnings, or
2-20 dividends earned or declared on a security in an
2-21 account, a reinvestment account, or a brokerage
2-22 account, whether or not credited to the account before
2-23 the owner's death; or
2-24 (B) A cash balance or other property held for or due
2-25 to the owner of a security as a replacement for or
2-26 product of an account security, whether or not
2-27 credited to the account before the owner's death.
2-29 Only individuals whose registration of a security shows
2-30 sole ownership by one individual or multiple ownership by
2-31 two or more with right of survivorship, rather than as
2-32 tenants in common, may obtain registration in beneficiary
2-33 form. Multiple owners of a security registered in
2-34 beneficiary form hold as joint tenants with right of
2-35 survivorship, as tenants by the entireties, or as owners
2-36 of community property held in survivorship form, and not
2-37 as tenants in common.
2-39 A security may be registered in beneficiary form if the
2-40 form is authorized by this or a similar statute of the
2-41 state of organization of the issuer or registering entity,
3- 1 the location of the registering entity's principal office,
3- 2 the office of its transfer agent or its office making the
3- 3 registration, or by this or a similar statute of the law
3- 4 of the state listed as the owner's address at the time of
3- 5 registration. A registration governed by the law of a
3- 6 jurisdiction in which this or similar legislation is not
3- 7 in force or was not in force when a registration in
3- 8 beneficiary form was made is nevertheless presumed to be
3- 9 valid and authorized as a matter of contract law.
3-11 A security, whether evidenced by certificate or account,
3-12 is registered in beneficiary form when the registration
3-13 includes a designation of a beneficiary to take the
3-14 ownership at the death of the owner or the deaths of all
3-15 multiple owners.
3-17 Registration in beneficiary form may be shown by the words
3-18 'transfer on death' or the abbreviation 'TOD,' or by the
3-19 words 'pay on death' or the abbreviation 'POD,' after the
3-20 name of the registered owner and before the name of a
3-23 The designation of a transfer on death beneficiary on a
3-24 registration in beneficiary form has no effect on
3-25 ownership until the owner's death. A registration of a
3-26 security in beneficiary form may be canceled or changed at
3-27 any time by the sole owner or all then surviving owners
3-28 without the consent of the beneficiary.
3-30 On death of a sole owner or the last to die of all
3-31 multiple owners, ownership of securities registered in
3-32 beneficiary form passes to the beneficiary or
3-33 beneficiaries who survive all owners. On proof of death
3-34 of all owners and compliance with any applicable
3-35 requirements of the registering entity, a security
3-36 registered in beneficiary form may be reregistered in the
3-37 name of the beneficiary or beneficiaries who survive the
3-38 death of all owners. Until division of the security after
3-39 the death of all owners, multiple beneficiaries surviving
3-40 the death of all owners hold their interests as tenants in
3-41 common. If no beneficiary survives the death of all
3-42 owners, the security belongs to the estate of the deceased
4- 1 sole owner or the estate of the last to die of all
4- 2 multiple owners.
4- 3 53-5-68.
4- 4 (a) A registering entity is not required to offer or to
4- 5 accept a request for security registration in beneficiary
4- 6 form. If a registration in beneficiary form is offered by
4- 7 a registering entity, the owner requesting registration in
4- 8 beneficiary form assents to the protections given to the
4- 9 registering entity by this article.
4-10 (b) By accepting a request for registration of a security
4-11 in beneficiary form, the registering entity agrees that
4-12 the registration will be implemented on death of the
4-13 deceased owner as provided in this article.
4-14 (c) A registering entity is discharged from all claims to
4-15 a security by the estate, creditors, heirs, or devisees of
4-16 a deceased owner if it registers a transfer of the
4-17 security in accordance with Code Section 53-5-67 and does
4-18 so in good faith reliance on the registration, on this
4-19 article, and on information provided to it by affidavit of
4-20 the personal representative of the deceased owner, or by
4-21 the surviving beneficiary or by the surviving
4-22 beneficiary's representatives, or other information
4-23 available to the registering entity. The protections of
4-24 this article do not extend to a reregistration or payment
4-25 made after a registering entity has received written
4-26 notice from any claimant to any interest in the security
4-27 objecting to implementation of a registration in
4-28 beneficiary form. No other notice or other information
4-29 available to the registering entity affects its right to
4-30 protection under this article.
4-31 (d) The protection provided by this article to the
4-32 registering entity of a security does not affect the
4-33 rights of beneficiaries in disputes between themselves and
4-34 other claimants to ownership of the security transferred
4-35 or its value or proceeds.
4-37 (a) A transfer on death resulting from a registration in
4-38 beneficiary form is effective by reason of the contract
4-39 regarding the registration between the owner and the
4-40 registering entity and this article and is not
5- 1 (b) This article does not limit the rights of creditors of
5- 2 security owners against beneficiaries and other
5- 3 transferees under other laws of this state.
5- 4 53-5-70.
5- 5 (a) A registering entity offering to accept registrations
5- 6 in beneficiary form may establish the terms and conditions
5- 7 under which it will receive requests for registrations in
5- 8 beneficiary form and for implementation of registrations
5- 9 in beneficiary form, including requests for cancellation
5-10 of previously registered transfer on death beneficiary
5-11 designations and requests for reregistration to effect a
5-12 change of beneficiary. The terms and conditions so
5-13 established may provide for proving death, avoiding or
5-14 resolving any problems concerning fractional shares,
5-15 designating primary and contingent beneficiaries, and
5-16 substituting a named beneficiary's descendants to take in
5-17 the place of the named beneficiary in the event of the
5-18 beneficiary's death. Substitution may be indicated by
5-19 appending to the name of the primary beneficiary the
5-20 letters LDPS, standing for 'lineal descendants per
5-21 stripes.' This designation substitutes a deceased
5-22 beneficiary's descendants who survive the owner for a
5-23 beneficiary who fails to so survive, the descendants to be
5-24 identified and to share in accordance with the law of the
5-25 beneficiary's domicile at the owner's death governing
5-26 inheritance by descendants of an intestate. Other forms
5-27 of identifying beneficiaries who are to take on one or
5-28 more contingencies and rules for providing proofs and
5-29 assurances needed to satisfy reasonable concerns by
5-30 registering entities regarding conditions and identities
5-31 relevant to accurate implementation of registrations in
5-32 beneficiary form may be contained in a registering
5-33 entity's terms and conditions.
5-34 (b) The following are illustrations of registrations in
5-35 beneficiary form which a registering entity may authorize:
5-36 (1) Sole owner-sole beneficiary: John S. Brown TOD (or
5-37 POD) John S. Brown, Jr.;
5-38 (2) Multiple owners-sole beneficiary: John S. Brown Mary
5-39 B. Brown JT TEN TOD John S. Brown, Jr.;
5-40 (3) Multiple owners-primary and secondary (substituted)
5-41 beneficiaries: John S. Brown Mary B. Brown JT TEN TOD
5-42 John S. Brown, Jr., SUB BENE Peter Q. Brown or John S.
5-43 Brown Mary B. Brown JT TEN TOD John S. Brown, Jr., LDPS.
6- 1 53-5-71.
6- 2 This article applies to registrations of securities in
6- 3 beneficiary form made before or after January 1, 1999, by
6- 4 decedents dying on or after January 1, 1999."
6- 5 SECTION 2.
6- 6 This Act shall become effective on January 1, 1999.
6- 7 SECTION 3.
6- 8 All laws and parts of laws in conflict with this Act are
6- 9 repealed.
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98