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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
S1359
|||| 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 may shall 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: roberta@micron.net
STATEMENT OF PURPOSE/FISCAL NOTE S 1359