234Banking Committee
JOINT FAVORABLE REPORT
Bill No.: HB-5608
AN ACT REQUIRING INVESTMENT ADVISERS TO INFORM CLIENTS OF
THEIR ABILITY TO NAME BENEFICIARIES OR CONTINGENT
Title: BENEFICIARIES FOR THEIR ASSETS.
Vote Date: 3/17/2021
Vote Action: Joint Favorable
PH Date: 2/9/2021
File No.: 234
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Rep. John Fusco, 81st Dist.
Rep. Craig C. Fishbein, 90th Dist.
Banking Committee
REASONS FOR BILL:
This bill requires that licensed investment advisors inform their clients of their ability to name
a contingent or successor beneficiary. The bill would provide clients with the information that
they can have a contingent beneficiary. The situation with Covid-19 seems to have brought to
the forefront an issue that existed but rarely became a problem. When couples pass at the
same time, and have each other named as beneficiaries, their accounts and assets get
liquidated and all go to probate. With this new mandatory information, if the account has a
contingent beneficiary it could allow the accounts and assets to remain in place.
RESPONSE FROM ADMINISTRATION/AGENCY:
None Expressed
NATURE AND SOURCES OF SUPPORT:
Representative John Fusco, 81st Assembly District: Rep. Fusco wrote a public hearing
testimony on 02/09/2021 in support of H.B. 5608. He supports this bill because, as his
parents died together in November 2020, he believes this bill would allow for the better
transition of assets and accounts. If people are given the knowledge and opportunity to state
a contingent beneficiary, more accounts and assets would be able to remain in place in
situations like his.
NATURE AND SOURCES OF OPPOSITION:
None Expressed
Reported by: Courtney Berry / Dawn Marzik Date: 3/24/2021
Page 2 of 2 HB-5608