House Bill No. by Representative Gadberry amends the Louisiana Uniform Transfer On Death Security Registration Act to enhance the clarity and implementation of "Transfer of Death" (TOD) beneficiary designations for investment accounts. The bill introduces legislative findings that highlight the importance of allowing TOD registrations for securities, which can help prevent issues such as frozen accounts and unnecessary probate delays. It also expands the definition of "registering entity" to include custodians and financial advisors, ensuring that these entities can facilitate the registration of securities in beneficiary form.

Additionally, the bill clarifies that registering a security in beneficiary form does not constitute a donation and does not alter rights related to community property or forced heirship. It provides protections for registering entities, stating they will not be held liable for failing to investigate succession disputes, determine heirship rights, or resolve community property claims, unless they have received written notice of a claim against the security. The bill aims to streamline the process for transferring securities upon death while maintaining compliance with existing laws and principles of succession. The act will take effect upon the governor's signature or after the designated time for gubernatorial action.

Statutes affected:
HB489 Original: 9:2(A), 9:6(C)