RÉSUMÉ DIGEST
ACT 167 (SB 91) 2021 Regular Session Peacock
New law enacts the Louisiana Uniform Transfer on Death Security Registration Act, which
provides for the transfer of certain securities to a beneficiary on the death of the owner of
such securities.
Provides definitions. Defines "security" as a share, participation, or other interest in movable
property, in a business, or in an obligation of an enterprise or other issuer, and includes a
certificated security, an uncertificated security, and a security account. It shall not include
a share, participation, or other interest in immovable property.
Provides that 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
co-owners in indivision or tenants in common, may obtain registration in beneficiary form.
Provides that a registration of a security in beneficiary form does not constitute a donation
inter vivos or mortis causa. A registration of a security in beneficiary form may be canceled
or changed at any time by the sole owner or any of the surviving owners without the consent
of the beneficiary.
Provides that, on proof of death of a sole owner or the last to die of all multiple owners, and
compliance with any applicable requirements of the registering entity, a security registered
in beneficiary form may be registered in the name of the beneficiary or beneficiaries who
survived the death of all owners, but such registration in the name of the beneficiary or
beneficiaries has no effect on ownership.
Provides certain procedures. Provides that 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 new law. Further provides that
such registering entity is discharged from all claims to a security by the estate, surviving
spouse, creditors, heirs, legatees, or forced heirs of a deceased owner if it registers a transfer
of the security in accordance with the new law and does so in good faith reliance (a) on the
registration, (b) on the new law, and (c) on information provided to it by affidavit of the
succession representative of the deceased owner, or by the surviving beneficiary or by the
surviving beneficiary's representatives.
Provides that its protections do not extend to a registration 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
information available to the registering entity affects its right to protection under the new
law. Also provides that its protections to the registering entity of a security does not affect
the rights of succession representatives, surviving spouses, heirs, legatees, forced heirs, or
creditors in disputes between themselves and other claimants to ownership of the security
transferred or its value or proceeds.
Authorizes certain terms, conditions, and forms for registration.
Provides that it shall become effective on January 1, 2022, and shall apply only to
registrations of securities in beneficiary form made on and after that date. Also provides that
it does not preclude or govern the application of payable on death accounts and other
transfers by a bank or savings institution as authorized by Title 6 of the Louisiana Revised
Statutes of 1950.
Effective January 1, 2022.
(Adds R.S. 9:1711-1711.9)