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S1359................................................by JUDICIARY AND RULES SECURITIES - Amends the Idaho Probate Act to clarify that when a security is held in a beneficiary form, it will pass to the surviving joint ownership and all other forms of ownership will be subject to the presumption. 02/03 Senate intro - 1st rdg - to printing 02/04 Rpt prt - to Jud 02/17 Rpt out - rec d/p - to 2nd rdg 02/18 2nd rdg - to 3rd rdg 02/25 3rd rdg - PASSED - 33-0-2 AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow, Darrington, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Walton, Wheeler, Whitworth, Williams NAYS--None Absent and excused--Danielson, Davis Floor Sponsor - Davis Title apvd - to House 02/28 House intro - 1st rdg - to Jud 03/20 Rpt out - rec d/p - to 2nd rdg 03/21 2nd rdg - to 3rd rdg 03/30 3rd rdg - PASSED - 62-0-8 AYES -- Barraclough, Barrett, Bell, Bieter, Black, Boe, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones(Jones), Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stoicheff, Stone, Tilman, Trail, Wheeler, Wood, Zimmermann NAYS -- None Absent and excused -- Alltus, Bruneel, Cuddy, Gould, Loertscher, Stevenson, Taylor, Mr Speaker Floor Sponsor - Sellman Title apvd - to Senate 03/31 To enrol 04/03 Rpt enrol - Pres signed - Sp signed 04/04 To Governor 04/12 Governor signed Session Law Chapter 244 Effective: 07/01/00
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000 IN THE SENATE SENATE BILL NO. 1359 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO PROBATE ACT; AMENDING SECTION 15-6-304, IDAHO CODE, TO 3 PROVIDE THAT REGISTRATION OF A SECURITY IN BENEFICIARY FORM MUST BE IN THE 4 FORM OF REGISTRATION IN BENEFICIARY FORM; AMENDING SECTION 15-6-305, IDAHO 5 CODE, TO PROVIDE THAT THE FORM MUST BE SHOWN BY THE WORDS "TRANSFER ON 6 DEATH" OR THE ABBREVIATION "TOD" OR THE WORDS "PAY ON DEATH" OR THE ABBRE- 7 VIATION "POD" AFTER THE NAME OF THE REGISTERED OWNER AND BEFORE THE NAME 8 OF THE BENEFICIARY; AND PROVIDING AN EFFECTIVE DATE. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 15-6-304, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 15-6-304. ORIGINATION OF REGISTRATION IN BENEFICIARY FORM. A security, 13 whether evidenced by certificate or account, is registered in beneficiary form 14 when the registration includes a designation of a beneficiary to take the own- 15 ership at the death of the owner or the deaths of all multiple owners in the 16 form set forth in section 15-6-305, Idaho Code. 17 SECTION 2. That Section 15-6-305, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 15-6-305. FORM OF REGISTRATION IN BENEFICIARY FORM. Registration in bene- 20 ficiary form mayshall be shown by the words "transfer on death" or the abbre- 21 viation "TOD," or by the words "pay on death" or the abbreviation "POD," after 22 the name of the registered owner and before the name of a beneficiary. 23 SECTION 3. This act shall be in full force and effect on and after July 24 1, 2000.
STATEMENT OF PURPOSE RS 09731 Chapter Six of the Idaho Probate Act covers "Non-probate Transfers." Such transfers are most commonly securities of some form with a beneficiary designation, or life insurance, or similar types of assets. Idaho law presumes that a security held in joint name with a deceased is an asset of the estate of the deceased joint owner unless the surviving joint owner can prove, by clear and convincing evidence, that the deceased joint owner intended for the asset to pass to the surviving joint tenant. This is because many such joint accounts are really "convenience" or "accommodation" accounts, to allow the joint owner (often a relative or friend) to help the other joint owner to pay bills. The original owner of the account often intends that the asset, at his or her death, will pass through the estate of the original owner to the persons named as the takers, either by will or by law. This bill makes it clear when the security is actually held in a beneficiary form, and will therefore pass to the surviving joint owner, despite the presumption. All other forms of ownership will be subject to the presumption. This will eliminate a current source of great confusion in the probate field, which has lead to unnecessary court actions. FISCAL NOTE This bill should have no effect on revenues or expenditures. It may reduce court involvement in battles over ownership of such assets, thereby reducing expenditures. CONTACT: Robert L. Aldridge 1209 North Eighth Street Boise, Idaho 83702-4297 Telephone: office: (208) 336-9880 home: (208) 888-4668 Fax: (208) 336-9882 e-mail: firstname.lastname@example.org STATEMENT OF PURPOSE/FISCAL NOTE S 1359