Current Status Bill Number:3379 Ratification Number:221 Act Number:102 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970205 Primary Sponsor:Haskins All Sponsors:Haskins Drafted Document Number:pt\2879mm.97 Companion Bill Number:408 Date Bill Passed both Bodies:19970604 Date of Last Amendment:19970429 Governor's Action:S Date of Governor's Action:19970613 Subject:Uniform Transfer on Death Security Registration Act, Uniform Laws
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19970630 Act No. A102
------ 19970613 Signed by Governor
------ 19970609 Ratified R221
Senate 19970604 Read third time, enrolled for
ratification
Senate 19970521 Read second time
Senate 19970520 Recalled from Committee, 02 SBI
placed on the Calendar
Senate 19970501 Introduced, read first time, 02 SBI
referred to Committee
House 19970430 Read third time, sent to Senate
House 19970429 Amended, read second time
House 19970424 Committee report: Favorable with 25 HJ
amendment
House 19970205 Introduced, read first time, 25 HJ
referred to Committee
View additional legislative information at the LPITS web site.
(A102, R221, H3379)
AN ACT TO AMEND TITLE 35, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 6 SO AS TO ENACT THE UNIFORM TRANSFER ON DEATH SECURITY REGISTRATION ACT WHICH PERMITS A PERSON TO REGISTER A SECURITY IN BENEFICIARY FORM INDICATING HIMSELF AS THE PRESENT OWNER WITH A DESIGNATION OF A BENEFICIARY TO TAKE OWNERSHIP AT HIS DEATH.
Be it enacted by the General Assembly of the State of South Carolina:
Uniform Transfer on Death Security Registration Act
SECTION 1. Title 35 of the 1976 Code is amended by adding:
Section 35-6-10. (A) This chapter may be cited as the Uniform Transfer on Death Security Registration Act.
(B) As used in this chapter:
(1) 'Beneficiary form' means a registration of a security which indicates the present owner of the security and the intention of the owner regarding the person who will become the owner of the security upon the death of the owner.
(2) 'Devisee' means a person designated in a will to receive a disposition of property.
(3) 'Heirs' means those persons, including the surviving spouse, who are entitled under the laws of intestate succession to the property of a decedent.
(4) 'Person' means an individual, a corporation, an organization, or other legal entity.
(5) 'Personal representative' includes a personal representative, administrator, or other person who performs substantially the same functions by law.
(6) 'Register', including its derivatives, means to issue a certificate showing the ownership of a certificated security or, in the case of an
uncertificated security, to initiate or transfer an account showing ownership of securities.
(7) 'Registration entity' means a person who originates or transfers a security title by registration, and includes a broker maintaining security accounts for customers and a transfer agent or other person acting for or as an issuer of securities.
(8) 'Security' means and is defined as provided in Section 35-1-20(12) and as a security account.
(9) 'Security account' means:
(a) a reinvestment account associated with a security; a securities account with a broker; a cash balance in a brokerage account, cash, interest earnings, or dividends earned or declared on a security in an account; a reinvestment account, or a brokerage account, whether or not credited to the account before the owner's death; or
(b) a cash balance or other property held for or due to the owner of a security as a replacement for or product of an account security, whether or not credited to the account before the owner's death.
(10) 'State' includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States.
Section 35-6-20. 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 tenants in common, may obtain registration in beneficiary form. Multiple owners of a security registered in beneficiary form hold as joint tenants with right of survivorship, and not as tenants in common.
Section 35-6-30. A security may be registered in beneficiary form, if the form is authorized by this chapter, by the laws of the state of organization of the issuer or registering entity; by the laws of the state of the location of the registering entity's principal office, the office of its transfer agent, or its office making the registration; or by the laws of the state listed as the owner's address at the time of registration. A registration governed by the law of a jurisdiction in which these provisions are not in force or was not in force when a registration in beneficiary form was made is nevertheless presumed to be valid and authorized as a matter of contract law.
Section 35-6-40. A security, whether evidenced by a certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take ownership at the death of the owner or the death of all multiple owners.
Section 35-6-50. Registration in beneficiary form may be shown by the words, 'transfer on death' or the abbreviation 'TOD', or by the words 'pay on death' or the abbreviation 'POD', after the name of the registered owner and before the name of a beneficiary.
Section 35-6-60. The designation of a transfer on death beneficiary on a registration in beneficiary form has no effect on ownership until the owner's death. A registration of a security in beneficiary form may be canceled or changed at any time by the sole owner or all then surviving owners, without the consent of the beneficiary.
Section 35-6-70. On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survive all owners. On proof of death of all owners and compliance with any applicable requirements of the registering entity, a security registered in beneficiary form may be reregistered in the name of the beneficiary or beneficiaries who survived the death of all owners. Until division of the security after the death of all owners, multiple beneficiaries surviving the death of all owners hold their interests as tenants in common. If no beneficiary survives the death of all owners, the security belongs to the estate of the deceased sole owner or the estate of the last to die of all multiple owners.
Section 35-6-80. (A) A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary form is offered by a registering entity, the owner requesting registration in beneficiary form assents to the protections given to the registering entity by this chapter.
(B) 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 this chapter.
(C) A registering entity is discharged from all claims to a security by the estate, creditors, heirs, or devises of a deceased owner if it registers a transfer of a security in accordance with Section 35-6-70 and does so in good faith reliance (1) on the registration, (2) on this chapter, and (3) on information provided to it by affidavit of the personal representative of the deceased owner, or by the surviving beneficiary or by the surviving beneficiary's representatives, or other information available to the registering entity. The protections of this chapter do not extend to a reregistration 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 other information available to the registering entity affects its right to protection under this chapter.
(D) The protection provided by this chapter to the registering entity of a security does not affect the rights of beneficiaries in disputes between themselves and other claimants to ownership of the security transferred or its value of proceeds.
Section 35-6-90. (A) A transfer on death resulting from a registration in beneficiary form is effective by reason of the contract regarding the registration between the owner and the registering entity and this chapter and is not testamentary.
(B) This chapter does not limit the rights of creditors of security owners against beneficiaries and other transferees under other laws of this State.
Section 35-6-100. (A) A registering entity offering to accept registrations in beneficiary form may establish the terms and conditions under which it will receive requests (1) for registrations in beneficiary form, and (2) for implementation of registrations in beneficiary form, including requests for cancellation of previously registered transfer on death beneficiary designations and requests for reregistration to effect a change of beneficiary. The terms and conditions established may provide for proving death, avoiding or resolving any problems concerning fractional shares, designating primary and contingent beneficiaries, and substituting a named beneficiary's descendants to take in the place of the named beneficiary in the event of the beneficiary's death. Substitution may be indicated by appending to the name of the primary beneficiary the letters 'LDPS', standing for 'lineal descendants per stirpes'. This designation substitutes a deceased beneficiary's descendants who survive the owner for a beneficiary who fails to so survive, the descendants to be identified and to share in accordance with the law of the beneficiary's domicile at the owner's death governing inheritance by descendant of an intestate. Other forms of identifying beneficiaries who are to take on one or more contingencies, and rules for providing proofs and assurances needed to satisfy reasonable concerns by registering entities regarding conditions and identities relevant to accurate implementation of registrations in beneficiary form, may be contained in a registering entity's terms and conditions."
Time effective
SECTION 2. This act takes effect upon approval by the Governor, and applies to registrations of securities in beneficiary form made before or after the effective date of this act by decedents dying on or after the effective date of this act.
Approved the 13th day of June, 1997.