DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 497 Reengrossed 2018 Regular Session Pearson
Abstract: Authorizes a surviving spouse to sell up to 50% of a joint securities or brokerage
account, until an executor or administrator can be appointed.
Proposed law defines "broker or securities firm" as a person defined as a broker or dealer under the
federal securities laws, also includes a bank acting in that capacity.
Proposed law defines "joint securities or brokerage account" as an account which is titled in the
name of a husband and wife, which is registered as a community property account, and which
requires the endorsement of both husband and wife in order to assign, transfer, or redeem a security,
or to grant the power to assign, transfer, or redeem a security.
Present law (R.S. 10:8-102(a)(15)) defines "security" as an obligation of an issuer or a share,
participation, or other interest in an issuer or in property or an enterprise of an issuer which is any
of the following:
(1)Represented by a security certificate in bearer or registered form, or the transfer of which
may be registered upon books maintained for that purpose by or on behalf of the issuer.
(2)One of a class or series or by its terms is divisible into a class or series of shares,
participations, interests, or obligations.
(3)(a) Is, or is of a type, dealt in or traded on securities exchanges or securities markets; or (b)
Is a medium for investment and by its terms expressly provides that it is a security governed
by the Uniform Commercial Code - Investment Securities (R.S. 10:8-102 through 8-511).
Proposed law defines "security" as it is defined by present law (R.S. 10:8-102(a)(15)).
Proposed law defines "securities or brokerage account" as an account to which a financial asset is
or may be credited in accordance with an agreement under which the person maintaining the account
undertakes to treat the person for whom the account is maintained as entitled to exercise the rights
that comprise the financial asset.
Proposed law provides that upon the death of a joint securities or brokerage account holder and with
the authorization and direction of the surviving account holder, a broker or securities firm may sell
or transfer securities held in the account not to exceed 50% of the value of each security held in the
joint securities account. The value of the securities shall be determined as of the date of the death of the decedent.
Proposed law provides that the surviving account holder has the right to withdraw the funds or assets
generated pursuant to the provisions of proposed law; however, the right of withdrawal shall
terminate upon written notice of the appointment of an executor or administrator of the estate of the
decedent being delivered to the broker or securities firm.
Proposed law exempts from liability a broker who pays the surviving spouse in accordance with the
provisions of proposed law.
Provides that the provisions of proposed law shall not prohibit any right of forced heirship or the
collation or collection of funds due to any spouse, heir, legatee, creditor, or other person having
rights or claims to funds of the deceased account holder.
Provides that the provisions of proposed law shall not be applicable upon delivery to the broker or
securities firm of a written notice of a petition for the divorce of the account holders and final
settlement of the community property has been filed and is pending at the time of the death of the
account holder.
(Adds R.S. 9:1421)
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Make a technical correction.