Minnesota Legislature
HF 19
2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 04/16/2013 02:41pm
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A bill for an act
relating to accounts; allowing agency designations in certain situations; providing
form language; making clarifying changes; amending Minnesota Statutes
2012, sections 524.6-201, subdivision 7, by adding a subdivision; 524.6-203;
524.6-204; 524.6-211; 524.6-213, by adding subdivisions; proposing coding for
new law in Minnesota Statutes, chapter 524.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 524.6-201, is amended by adding a
subdivision to read:
new text begin Subd. 2a. new text end
new text begin Agent. new text end
new text begin
"Agent" means a person authorized to make account transactions
for a party.
new text end
Sec. 2.
Minnesota Statutes 2012, section 524.6-201, subdivision 7, is amended to read:
Subd. 7.
Party.
"Party" means a person who, by the terms of the account, has a
present right, subject to request, to payment from a multiple-party accountnew text begin other than as an
agentnew text end . A P.O.D. payee is a party only after the account becomes payable by reason of the
payee surviving the original party. Unless the context otherwise requires, it includes a
guardian, conservator, personal representative, or assignee, including an attaching creditor,
of a party. It also includes a person identified as a trustee of an account for another whether
or not a beneficiary is named, but it does not include any named beneficiary unless the
beneficiary has a present right of withdrawal.
Sec. 3.
Minnesota Statutes 2012, section 524.6-203, is amended to read:
524.6-203 OWNERSHIP DURING LIFETIME.
(a) A joint account belongs, during the lifetime of all parties, to the parties in
proportion to the net contributions by each to the sums on deposit, unless there is clear and
convincing evidence of a different intent.
(b) A P.O.D. account belongs to the original purchasing or depositing party during
the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named
as original parties, during their lifetimes, rights as between them are governed by deleted text begin clause
deleted text end new text begin paragraphnew text end (a).
new text begin
(c) An agent in an account with an agency designation has no beneficial right to
sums on deposit by virtue of being named as an agent.
new text end
Sec. 4.
new text begin
[524.6-215] DESIGNATION OF AGENT.
new text end
new text begin
(a) By a writing signed by all parties, or by less than all of the parties if the contract
of deposit expressly so provides, the parties may designate, as an agent of all parties
on an account, a person other than a party.
new text end
new text begin
(b) Unless the terms of an agency designation provide that the authority of the agent
terminates on disability or incapacity of a party, the agent's authority survives disability
and incapacity. The agent may act for a party until the authority of the agent is terminated
by the party, by an attorney-in-fact appointed by the party, or by a conservator appointed
to protect the interests of the party.
new text end
new text begin
(c) Death of the sole party or last surviving party terminates the authority of an agent.
new text end
new text begin
(d) Except as otherwise provided for in section 524.6-211, a financial institution is
not liable for account transactions performed at the direction of, or authorized by, an agent
under an agency designation for an account if:
new text end
new text begin
(1) the financial institution has no actual notice of the determination of the agent's
authority prior to the transaction;
new text end
new text begin
(2) the financial institution has no actual knowledge of the death of the sole party
or last surviving party; or
new text end
new text begin
(3) the agent's authority does not survive the disability or incapacity of all the parties,
and the financial institution has not received actual notice of such disability or incapacity.
new text end
Sec. 5.
new text begin
[524.6-216] TYPES OF ACCOUNT; EXISTING ACCOUNTS.
new text end
new text begin
(a) An account may be for a single party or multiple parties. A multiple-party
account may be with or without a right of survivorship between the parties. Subject to
section 524.6-204, either a single-party account or a multiple-party account may have a
P.O.D. designation, an agency designation, or both.
new text end
new text begin
(b) An account established before, on or after August 1, 2013, whether in the form
prescribed in section 524.6-213 or in any other form acceptable to the financial institution,
is either a single-party account or a multiple-party account, with or without right of
survivorship, and with or without a P.O.D. designation or an agency designation within the
meaning of this chapter, and is governed by this chapter.
new text end
new text begin
(c) An agency designation created on or after August 1, 2013, is governed by this
chapter.
new text end
Sec. 6.
Minnesota Statutes 2012, section 524.6-204, is amended to read:
524.6-204 RIGHT OF SURVIVORSHIP.
(a) Sums remaining on deposit at the death of a party to a joint account belong to the
surviving party or parties as against the estate of the decedent unlessnew text begin : (1)new text end there is clear and
convincing evidence of a different intentiondeleted text begin ,deleted text end new text begin ;new text end ornew text begin (2)new text end there is a different disposition made by
a valid will deleted text begin as herein provided,deleted text end specifically referring to such accountnew text begin , as herein providednew text end .
If there are two or more surviving parties, their respective ownerships during lifetime shall
be in proportion to their previous ownership interests under section 524.6-203 augmented
by an equal share for each survivor of any interest the decedent may have owned in the
account immediately before death; and the right of survivorship continues between the
surviving parties. The interest so determined is also the interest disposable by will.
(b) If the account is a P.O.D. account, on the death of the original party or of the
survivor of two or more original parties, any sums remaining on deposit belong to the
P.O.D. payees if surviving, or to the survivor of them if one or more die before the
surviving original party; if two or more P.O.D. payees survive, there is no right of
survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account
or deposit agreement expressly provide for survivorship between them.
(c) In other cases, the death of any party to a multiple-party account has no effect
on beneficial ownership of the account other than to transfer the rights of the decedent
as part of the estate.
(d) A right of survivorship arising from the express terms of the account, or under
this section, or under a P.O.D. payee designation, may be changed by specific reference by
will, but the terms of such will shall not be binding upon any financial institution unless
it has been given a notice in writing of a claim thereunder, in which event the deposit
shall remain undisbursed until an order has been made by the probate court adjudicating
the decedent's interest disposable by will.
Sec. 7.
Minnesota Statutes 2012, section 524.6-211, is amended to read:
524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.
Payment made pursuant to sections 524.6-208 to 524.6-210 discharges the financial
institution from all claims for amounts so paid whether or not the payment is consistent
with the beneficial ownership of the account as between parties, P.O.D. payees, or
beneficiaries by will or otherwise, or their successors. The protection here given does not
extend to payments made after a financial institution has received written notice from
any person entitled to request payment to the effect that withdrawals in accordance with
the terms of the accountnew text begin , including one having an agency designation,new text end should not be
permittednew text begin , and the financial institution has had a reasonable opportunity to act on it when
the payment is madenew text end . Unless the notice is withdrawn by the person giving it, the successor
of any deceased party and all other parties entitled to payment must concur in any demand
for withdrawal if the financial institution is to be protected under this section. No other
notice or any other information shown to have been available to a financial institution shall
affect its right to the protection provided here.new text begin A financial institution that receives written
notice pursuant to this section, or that otherwise has reason to believe that a dispute exists
as to the rights of the parties may refuse, without liability, to make payment in accordance
with the terms of the account.new text end The protection here provided shall not affect the rights
of parties in disputes between themselves or their successors concerning the beneficial
ownership of funds in, or withdrawn from, multiple-party accounts.
Sec. 8.
Minnesota Statutes 2012, section 524.6-213, is amended by adding a
subdivision to read:
new text begin Subd. 3. new text end
new text begin Contract of deposit; sample form. new text end
new text begin
A contract of deposit that contains
provisions in substantially the following form establishes the type of account provided, and
the account is governed by the provisions of this part applicable to an account of that type:
new text end
new text begin
UNIFORM SINGLE- OR MULTIPLE-PARTY ACCOUNT FORM
new text end
| new text begin PARTIES [Name One Or More Parties]: new text end |
|||
|
new text begin . new text end |
new text begin
.
new text end |
||
| new text begin OWNERSHIP [Select One And Initial]: new text end |
|||
|
new text begin
.
new text end |
new text begin SINGLE-PARTY ACCOUNT new text end |
||
|
new text begin
.
new text end |
new text begin MULTIPLE-PARTY ACCOUNT new text end |
||
|
new text begin
Parties own account in proportion to net contributions unless there is clear and convincing evidence of a different intent. new text end |
|||
| new text begin RIGHTS AT DEATH [Select One And Initial]: new text end |
|||
|
new text begin
.
new text end |
new text begin SINGLE-PARTY ACCOUNT new text end |
||
|
new text begin
At death of party, ownership passes as part of party's estate. new text end |
|||
|
new text begin
.
new text end |
new text begin SINGLE-PARTY ACCOUNT WITH P.O.D. (PAYABLE ON DEATH) DESIGNATION new text end |
||
|
new text begin
[Name One Or More Beneficiaries]: new text end |
|||
|
new text begin
.
new text end |
new text begin
.
new text end |
||
|
new text begin
At death of party, ownership passes to P.O.D. beneficiaries and is not part of party's estate. new text end |
|||
|
new text begin
.
new text end |
new text begin MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP new text end |
||
|
new text begin
At death of party, ownership passes to surviving parties. new text end |
|||
|
new text begin
.
new text end |
new text begin MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP AND P.O.D. (PAYABLE ON DEATH) DESIGNATION new text end |
||
|
new text begin
[Name One Or More Beneficiaries]: new text end |
|||
|
new text begin
.
new text end |
new text begin
.
new text end |
||
|
new text begin
At death of last surviving party, ownership passes to P.O.D. beneficiaries and is not part of last surviving party's estate. new text end |
|||
|
new text begin
.
new text end |
new text begin MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP new text end |
||
|
new text begin
At death of party, deceased party's ownership passes as part of deceased party's estate. new text end |
|||
|
new text begin
.
new text end |
new text begin AGENCY DESIGNATION [Optional] new text end |
||
|
new text begin
Agents may make account transactions for parties but have no ownership or rights at death unless named as P.O.D. beneficiaries. [To Add Agency Designation To Account, Name One Or More Agents]: new text end |
|||
|
new text begin
.
new text end |
new text begin
.
new text end |
||
|
new text begin
[Select One And Initial]: new text end |
|||
|
new text begin
.
new text end |
new text begin
AGENCY DESIGNATION SURVIVES DISABILITY OR INCAPACITY OF ANY OR ALL OF THE PARTIES new text end |
||
|
new text begin
.
new text end |
new text begin
AGENCY DESIGNATION TERMINATES ON DISABILITY OR INCAPACITY OF THE SOLE PARTY OR THE LAST SURVIVING PARTY new text end |
||
Sec. 9.
Minnesota Statutes 2012, section 524.6-213, is amended by adding a
subdivision to read:
new text begin Subd. 4. new text end
new text begin Contract of deposit; generally. new text end
new text begin
A contract of deposit that does not
contain provisions in substantially the form provided in subdivision 3 is governed by
the provisions of this part applicable to the type of account that most nearly conforms
to the depositor's intent.
new text end