Senate Bill No. by Senator Abraham aims to establish a new framework for the administration of transfer on death accounts in Louisiana by enacting Chapter 19-A in Title 6 of the Louisiana Revised Statutes. The bill defines key terms such as "transfer on death account," "financial institution," "owner," and "beneficiary," and outlines the rights of beneficiaries to receive account funds or assets upon the owner's death. It specifies that the designation of beneficiaries must be executed in person at the financial institution and prohibits electronic submissions or actions taken by representatives under a power of attorney. The bill also clarifies that financial institutions and beneficiaries are not liable for claims against the funds transferred to the named beneficiary, provided the designation complies with the new regulations.

Additionally, the bill repeals several existing laws related to the administration of trust deposits by banks, credit unions, and mutual associations, as well as the Louisiana Uniform Transfer on Death Security Registration Act. This repeal is intended to streamline the legal framework governing transfer on death accounts and ensure consistency in the treatment of such accounts across different financial institutions. The new provisions will take effect on August 1, 2026.

Statutes affected:
SB262 Original: