81R5999 KLA-F
By: Deshotel H.B. No. 3075
A BILL TO BE ENTITLED
AN ACT
relating to the designation of convenience signers on certain
accounts established at financial institutions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Part 1, Chapter XI, Texas Probate Code, is
amended by adding Section 438B to read as follows:
Sec. 438B. CONVENIENCE SIGNER ON OTHER ACCOUNTS. (a) An
account established by one or more parties at a financial
institution that is not designated as a convenience account, but is
instead designated as a single-party account or another type of
multiple-party account, may provide that the sums on deposit may be
paid or delivered to the parties or to one or more convenience
signers "for the convenience of the parties."
(b) Except as provided by Subsection (c) of this section:
(1) the provisions of Section 438A of this chapter
apply to an account described by Subsection (a) of this section,
including provisions relating to the ownership of the account
during the lifetimes and on the deaths of the parties and provisions
relating to the powers and duties of the financial institution at
which the account is established; and
(2) any other law relating to a convenience signer
applies to a convenience signer designated as provided by this
section to the extent the law applies to a convenience signer on a
convenience account.
(c) On the death of the last surviving party to an account
that has a convenience signer designated as provided by this
section, the convenience signer does not have a right of
survivorship in the account and the estate of the last surviving
party owns the account unless the convenience signer is also
designated as a P.O.D. payee or as a beneficiary.
SECTION 2. Sections 439A(a) and (b), Texas Probate Code,
are amended to read as follows:
(a) A contract of deposit that contains provisions
substantially the same as in the form provided by Subsection (b) of
this section establishes the type of account selected by a party.
The provisions of this part of Chapter XI of this code govern an
account selected under the form[, other than a single-party account
without a P.O.D. designation]. A contract of deposit that does not
contain provisions substantially the same as in the form provided
by Subsection (b) of this section is governed by the provisions of
this chapter applicable to the account that most nearly conforms to
the depositor's intent.
(b) A financial institution may use the following form to
establish the type of account selected by a party:
UNIFORM SINGLE-PARTY OR MULTIPLE-PARTY ACCOUNT SELECTION
FORM NOTICE: The type of account you select may determine how
property passes on your death. Your will may not control the
disposition of funds held in some of the following accounts. You
may choose to designate one or more convenience signers on an
account, even if the account is not a convenience account. A
designated convenience signer may make transactions on your behalf
during your lifetime, but does not own the account during your
lifetime. The designated convenience signer owns the account on
your death only if the convenience signer is also designated as a
P.O.D. payee or trust account beneficiary.
Select one of the following accounts by placing your initials
next to the account selected:
___ (1) SINGLE-PARTY ACCOUNT WITHOUT "P.O.D." (PAYABLE ON
DEATH) DESIGNATION. The party to the account owns the account. On
the death of the party, ownership of the account passes as a part of
the party's estate under the party's will or by intestacy.
Enter the name of the party:
______________________________
Enter the name(s) of the convenience signer(s), if you want
one or more convenience signers on this account:
______________________________
______________________________
___ (2) SINGLE-PARTY ACCOUNT WITH "P.O.D." (PAYABLE ON
DEATH) DESIGNATION. The party to the account owns the account. On
the death of the party, ownership of the account passes to the
P.O.D. beneficiaries of the account. The account is not a part of
the party's estate.
Enter the name of the party:
______________________________
Enter the name or names of the P.O.D. beneficiaries:
______________________________
______________________________
Enter the name(s) of the convenience signer(s), if you want
one or more convenience signers on this account:
______________________________
______________________________
___ (3) MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF
SURVIVORSHIP. The parties to the account own the account in
proportion to the parties' net contributions to the account. The
financial institution may pay any sum in the account to a party at
any time. On the death of a party, the party's ownership of the
account passes as a part of the party's estate under the party's
will or by intestacy.
Enter the names of the parties:
______________________________
______________________________
______________________________
Enter the name(s) of the convenience signer(s), if you want
one or more convenience signers on this account:
______________________________
______________________________
___ (4) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP.
The parties to the account own the account in proportion to the
parties' net contributions to the account. The financial
institution may pay any sum in the account to a party at any time.
On the death of a party, the party's ownership of the account passes
to the surviving parties.
Enter the names of the parties:
______________________________
______________________________
Enter the name(s) of the convenience signer(s), if you want
one or more convenience signers on this account:
______________________________
______________________________
___ (5) MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP
AND P.O.D. (PAYABLE ON DEATH) DESIGNATION. The parties to the
account own the account in proportion to the parties' net
contributions to the account. The financial institution may pay
any sum in the account to a party at any time. On the death of the
last surviving party, the ownership of the account passes to the
P.O.D. beneficiaries.
Enter the names of the parties:
______________________________
______________________________
Enter the name or names of the P.O.D. beneficiaries:
______________________________
______________________________
Enter the name(s) of the convenience signer(s), if you want
one or more convenience signers on this account:
______________________________
______________________________
___ (6) CONVENIENCE ACCOUNT. The parties to the account own
the account. One or more convenience signers to the account may
make account transactions for a party. A convenience signer does
not own the account. On the death of the last surviving party,
ownership of the account passes as a part of the last surviving
party's estate under the last surviving party's will or by
intestacy. The financial institution may pay funds in the account
to a convenience signer before the financial institution receives
notice of the death of the last surviving party. The payment to a
convenience signer does not affect the parties' ownership of the
account.
Enter the names of the parties:
______________________________
______________________________
Enter the name(s) [names] of the convenience signer(s)
[signers]:
______________________________
______________________________
___ (7) TRUST ACCOUNT. The parties named as trustees to the
account own the account in proportion to the parties' net
contributions to the account. A trustee may withdraw funds from the
account. A beneficiary may not withdraw funds from the account
before all trustees are deceased. On the death of the last
surviving trustee, the ownership of the account passes to the
beneficiary. The trust account is not a part of a trustee's estate
and does not pass under the trustee's will or by intestacy, unless
the trustee survives all of the beneficiaries and all other
trustees.
Enter the name or names of the trustees:
______________________________
______________________________
Enter the name or names of the beneficiaries:
______________________________
______________________________
Enter the name(s) of the convenience signer(s), if you want
one or more convenience signers on this account:
______________________________
______________________________
SECTION 3. The changes in law made by this Act apply to an
account with a financial institution for which a convenience signer
is designated, regardless of whether the account was established or
the convenience signer was designated before, on, or after the
effective date of this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.