The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Lebra R. Bias.
DIGEST
SB 374 Original 2022 Regular Session Peacock
Present 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.
Present 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.
Present 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.
Present 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 all 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.
Present 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.
Present 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.
Present law authorizes certain terms, conditions, and forms for registration.
Present 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.
Proposed law makes technical changes.
Present law provides that registration of a security in beneficiary form does not constitute a donation
inter vivos or mortis causa. Proposed law adds to present law the statutes referencing donations inter
vivos and mortis causa.
Present law requires registration in beneficiary form to be implemented on death. Proposed law
changes on to upon.
Effective August 1, 2022.
(Amends R.S. 9:1711(1) and (5), 1711.2, 1711.3, 1711.4, 1711.5(A), 1711.6(B) and (D), 1711.7,
1711.8(A), and 1711.9(A), and the heading of R.S. 9:1711.1; adds R.S. 9:1711.6(E))