RDCSB91 3645 2688
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)]
SB 91 Reengrossed 2021 Regular Session Peacock
Proposed law enacts the Louisiana Uniform Transfer on Death Security Registration Act,
which provides for the transfer of certain securities to a beneficiary on the death of the owner
of such securities.
Proposed law provides definitions. Defines "security" as a share, participation, or other
interest in movable property, in a business, or in an obligation of an enterprise or other
issuer, and includes a certificated security, an uncertificated security, and a security account.
It shall not include a share, participation, or other interest in immovable property.
Proposed law provides that only individuals whose registration of a security shows sole
ownership by one individual or multiple ownership by two or more with right of
survivorship, rather than as co-owners in indivision or tenants in common, may obtain
registration in beneficiary form.
Proposed law further provides that a registration of a security in beneficiary form does not
constitute a donation inter vivos or mortis causa. A registration of a security in beneficiary
form may be canceled or changed at any time by the sole owner or any of the surviving
owners without the consent of the beneficiary.
Proposed law further provides that, on proof of death of a sole owner or the last to die of all
multiple owners, and compliance with any applicable requirements of the registering entity,
a security registered in beneficiary form may be registered in the name of the beneficiary or
beneficiaries who survived the death of all owners, but such registration in the name of the
beneficiary or beneficiaries has no effect on ownership.
Proposed law provides certain procedures. Provides that by accepting a request for
registration of a security in beneficiary form, the registering entity agrees that the
registration will be implemented on death of the deceased owner as provided in proposed
law. Further provides that such registering entity is discharged from all claims to a security
by the estate, surviving spouse, creditors, heirs, legatees, or forced heirs of a deceased owner
if it registers a transfer of the security in accordance with the proposed law and does so in
good faith reliance (a) on the registration, (b) on the proposed law, and (c) on information
provided to it by affidavit of the succession representative of the deceased owner, or by the
surviving beneficiary or by the surviving beneficiary's representatives.
Proposed law further provides that its protections do not extend to a registration or payment
made after a registering entity has received written notice from any claimant to any interest
in the security objecting to implementation of a registration in beneficiary form. No other
notice or information available to the registering entity affects its right to protection under
the proposed law. Also provides that its protections to the registering entity of a security
does not affect the rights of succession representatives, surviving spouses, heirs, legatees,
forced heirs, or creditors in disputes between themselves and other claimants to ownership
of the security transferred or its value or proceeds.
Proposed law authorizes certain terms, conditions, and forms for registration.
Proposed law provides that it shall become effective on January 1, 2022, and shall apply
only to registrations of securities in beneficiary form made on and after that date. Also
provides that it does not preclude or govern the application of payable on death accounts and
other transfers by a bank or savings institution as authorized by Title 6 of the Louisiana
Revised Statutes of 1950.
Effective January 1, 2022.
Page 1 of 2 RDCSB91 3645 2688
(Adds R.S. 9:1711-1711.9)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Removes from the definition of "security" that it shall not include a share,
participation, or other interest in property subject to claim by a forced heir
for his legitime.
2. Provides for the required form of a security registered in beneficiary form.
3. Specifies that the provisions of proposed law apply to a security registered
in beneficiary form following the confirmation of the death of a sole owner
or the last to die of all multiple owners despite the fact that the decedent
designates a beneficiary by last will and testament.
4. Provides that a registering entity shall not be held liable if it registers a
transfer of a security in beneficiary form in accordance with the provisions
of proposed law in good faith.
5. Removes the provision that a registering entity may rely on information
available to it other than what is provided in an affidavit of the succession
representative of the deceased owner, surviving beneficiary, or surviving
beneficiary's representative relative to the registration of a transfer of a
security registered in beneficiary form.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and
Procedure to the reengrossed bill:
1. Add a definition of "good faith".
2. Allow the registration of a security in beneficiary form to be cancelled or
changed by any, rather than all, of the surviving owners.
Page 2 of 2