Relating to release of funds in certain financial accounts of deceased persons; creating new provisions; and amending ORS 708A.430, 708A.470, 722.262, 723.466 and 723.480.

 
 
 
     72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 413
 
                         House Bill 2149
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Department of Human Services)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Directs financial institutions, savings associations, federal
associations and credit unions to wait 60 days or confirm that
Department of Human Services does not have claim before releasing
funds in account of deceased depositor, account holder or member
to person who is not surviving spouse.
  Directs financial institutions, savings associations, federal
associations and credit unions to supply names and addresses of
parties on multiple-party account to Department of Human Services
when party to account dies and department asserts claim against
account.
 
                        A BILL FOR AN ACT
Relating to release of funds in certain financial accounts of
  deceased persons; creating new provisions; and amending ORS
  708A.430, 708A.470, 722.262, 723.466 and 723.480.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 708A.430 is amended to read:
  708A.430. (1) On the death of a depositor of a financial
institution, if the deposit is $25,000 or less, the financial
institution may,   { - upon - }   { + after + } receipt of an
affidavit from the person claiming the deposit as provided in
subsection (2) of this section, pay the moneys on deposit to the
credit of the deceased depositor:
  (a) To the surviving spouse;
  (b) If there is no surviving spouse, to the Department of Human
Services, on demand of the department within 60  { + calendar + }
days from the death of the depositor where there is a preferred
claim arising under ORS 411.795, 412.600, 413.200 or 414.105, or
if there is no claim by the department, to the surviving children
18 years of age or older;
  (c) If the depositor left no surviving spouse, Department of
Human Services claim or surviving children, to the depositor's
surviving parents; or
  (d) If there is no surviving spouse, Department of Human
Services claim, surviving child or surviving parent, to the
depositor's surviving brothers and sisters 18 years of age or
older.
  (2) The affidavit   { - shall - }  { +  must + }:
  (a) State where and when the depositor died;
  (b) State that the total deposits of the deceased depositor in
all financial institutions in Oregon do not exceed $25,000;
  (c) Show the relationship of the affiant or affiants to the
deceased depositor; and
  (d) Embody a promise to pay the expenses of last sickness,
funeral expenses and just debts of the deceased out of the
deposit to the full extent of the deposit if necessary.
  (3) In the event the decedent died intestate without known
heirs, the Director of the Division of State Lands shall be the
affiant.
  (4) The financial institution shall determine the relationship
of the affiant to the deceased depositor  { - , however - }
 { + .  If the affiant is not the surviving spouse or the
Department of Human Services, the financial institution shall
wait 60 calendar days from the death of the depositor or confirm
that the Department of Human Services does not have a claim
before releasing any funds to the affiant. + } Payment of such
moneys in good faith to the affiant or affiants   { - shall
discharge and release - }  { +  discharges and releases + } the
transferor from any liability or responsibility for the transfer
in the same manner and with the same effect as if the property
had been transferred, delivered or paid to a personal
representative of the estate of the decedent.
  (5) A probate proceeding is not necessary to establish the
right of the surviving spouse, Department of Human Services
claim, surviving child, surviving parent, surviving brothers and
sisters or the Director of the Division of State Lands to
withdraw the deposits   { - upon - }   { + after + } the filing
of the affidavit. If a personal representative is appointed in an
estate where a withdrawal of deposits was made under this
section, the person withdrawing the deposits shall account for
them to the personal representative.
  (6) When a financial institution transfers moneys under
subsection (1) of this section, the transferor may require the
transferee to furnish the transferor a written indemnity
agreement, indemnifying the transferor against loss for moneys
paid to the extent of the amount of the deposit.
  (7) This section is subject to the rights of other parties in
the account under ORS 708A.455 to 708A.515.
  SECTION 2. ORS 708A.470 is amended to read:
  708A.470. (1) Sums remaining on deposit at the death of a party
to a joint account belong to the surviving party or parties as
against the estate of the decedent, unless there is clear and
convincing evidence of a different intention in the bank's
account records at the time of death. If there are two or more
surviving parties, their respective ownerships during their
lifetimes shall be in proportion to their previous ownership
interests under ORS 708A.465 augmented by an equal share for each
survivor of any interest the decedent may have owned in the
account immediately before death. The right of survivorship
continues between the surviving parties.
  (2) If the account is a P.O.D. account:
  (a) On the death of one of two or more original parties, the
rights to any sums remaining on deposit are governed by
subsection (1) of this section.
  (b) On the death of the sole original party or the survivor of
two or more original parties, any sums remaining on deposit
belong to the P.O.D. payee or payees, if surviving, or to the
survivor of them if one or more die before the original party. If
two or more P.O.D. payees survive, there is no right of
survivorship in the event of death of a P.O.D. payee thereafter
unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
  (3) If the account is a trust account:
 
 
  (a) On the death of one of two or more trustees, the rights to
any sums remaining on deposit are governed by subsection (1) of
this section.
  (b) On the death of the sole trustee or the survivor of two or
more trustees, any sums remaining on deposit belong to the person
or persons named as beneficiaries, if surviving, or to the
survivor of them if one or more die before the trustee, unless
there is clear and convincing evidence of a contrary intent. If
two or more beneficiaries survive, there is no right of
survivorship in event of death of any beneficiary thereafter
unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
  (4) In other cases, the death of any party to a multiple-party
account has no effect on beneficial ownership of the account,
other than to transfer the rights of the decedent as part of the
estate of the decedent.
  (5) A right of survivorship arising from the express terms of
the account or under this section, a beneficiary designation in a
trust account, or a P.O.D. payee designation, cannot be changed
by will.
   { +  (6) When the Department of Human Services asserts a claim
arising under ORS 414.105 against the estate of a deceased party
to a multiple-party account, upon written request of the
department, the financial institution shall provide the
department with a statement showing the amount of the account
balance on the date of death of the party and the names and
addresses of any surviving parties to the account. + }
  SECTION 3. ORS 722.262 is amended to read:
  722.262. (1) On the death of an account holder or a holder of a
demand deposit account, if the savings liability of an
association or federal association on all savings accounts of the
deceased, and the amounts held in all demand deposit accounts of
the deceased, is $25,000 or less, the association or federal
association may,   { - upon - }   { + after + } receipt of an
affidavit from the person claiming the account, pay the
withdrawal value of the accounts of the deceased holder:
  (a) To the surviving spouse;
  (b) If there is no surviving spouse, to the surviving children
18 years of age or older;
  (c) If there is no surviving spouse or surviving children 18
years of age or older, to the surviving parents; or
  (d) If there is no surviving spouse, surviving child 18 years
of age or older or surviving parent, to the surviving brothers
and sisters 18 years of age or older.
  (2) If the deceased account holder or holder of a demand
deposit account received public assistance pursuant to ORS
chapter 411, 412, 413 or 414, the Department of Human Services
may claim such withdrawal value by filing an affidavit in the
form prescribed by subsection (3) of this section and the
Department of Human Services shall be preferred to all other
claimants except a surviving spouse.
  (3) The affidavit of the person or the Department of Human
Services claiming the account   { - shall - }  { +  must + }:
  (a) State where and when the account holder or holder of a
demand deposit account died;
  (b) State that the total withdrawal value of all savings and
demand deposit accounts of the deceased holder in all
associations in Oregon, including federal associations, does not
exceed $25,000;
  (c) Show the relationship of the affiant or affiants to the
deceased holder; and
  (d) Embody a promise to pay the expenses of last sickness,
funeral expenses and just debts of the deceased out of the
account to the full extent of the account if necessary and to
distribute any balance to those persons entitled thereto by law.
 
  (4) In the event the decedent died intestate without known
heirs, the Director of the Division of State Lands shall be the
affiant.
  (5) A savings association or federal association   { - is under
no obligation to - }   { + shall + } determine the relationship
of the affiant to the deceased.  { + If the affiant is not the
surviving spouse or the Department of Human Services, the savings
association or federal association shall wait 60 calendar days
from the death of the account holder or confirm that the
Department of Human Services does not have a claim before
releasing any funds to the affiant. + } Payment made in good
faith to the person or the Department of Human Services making
the affidavit is a full acquittance and release of the
association or federal association for the amount so paid.
  (6) A probate proceeding is not necessary to establish the
right of the surviving spouse, surviving children, surviving
parent or surviving brothers and sisters to withdraw an account
as provided by this section. However, if a personal
representative is appointed in an estate of a deceased person
whose account has been withdrawn under this section, the person
or the Department of Human Services withdrawing the account shall
account for it to the personal representative.
   { +  (7) When the Department of Human Services asserts a claim
arising under ORS 414.105 against the estate of a deceased
account holder and the account is owned by more than one person,
the account is payable on death to one or more persons or the
deceased person is the beneficiary of a trust account established
by the form of the account and the deposit agreement, upon
written request of the department, the savings association or
federal association shall provide the department with a statement
showing the amount of the account balance on the date of death
and the names and addresses of the surviving owners of the
account. + }
  SECTION 4. ORS 723.466 is amended to read:
  723.466. (1) On the death of a member of a credit union, if the
deposit to the credit of the deceased member is $25,000 or less,
the credit union may,   { - upon - }   { + after + } receipt of
an affidavit from the person claiming the deposit as provided in
subsection (2) of this section, pay the moneys on deposit:
  (a) To the surviving spouse;
  (b) If there is no surviving spouse, to the Department of Human
Services, on demand of the Department of Human Services within 60
 { + calendar + } days from the death of the member when there is
a preferred claim arising under ORS 411.795, 412.600, 413.200 or
414.105, or if there is no claim by the Department of Human
Services, to the surviving children 18 years of age or older;
  (c) If there is no surviving spouse, Department of Human
Services claim or surviving children, to the member's surviving
parents; or
  (d) If there is no surviving spouse, Department of Human
Services claim, surviving children or surviving parents, to the
member's surviving brothers and sisters 18 years of age or older.
  (2) The affidavit   { - shall - }  { +  must + }:
  (a) State where and when the member died;
  (b) State that the total deposits of the deceased member in all
financial institutions in this state do not exceed $25,000;
  (c) Show the relationship of the affiant or affiants to the
deceased member; and
  (d) Embody a promise to pay the expenses of last sickness,
funeral expenses and just debts of the deceased out of the
deposit, to the full extent of the deposit if necessary.
  (3) In the event the decedent died intestate without known
heirs, the Director of the Division of State Lands shall be the
affiant.
  (4) The credit union shall determine the relationship of the
affiant to the deceased member.  { + If the affiant is not the
surviving spouse or the Department of Human Services, the credit
union shall wait 60 calendar days from the death of the member or
confirm that the Department of Human Services does not have a
claim before releasing any funds to the affiant. + }
 { - However, - } Payment of such moneys in good faith to the
affiant or affiants
  { - shall discharge and release - }   { + discharges and
releases + } the transferor from any liability or responsibility
for the transfer in the same manner and with the same effect as
if the property had been transferred, delivered or paid to a
personal representative of the estate of the decedent.
  (5) A probate proceeding is not necessary to establish the
right of the surviving spouse, Department of Human Services
claim, surviving children, surviving parents, surviving brothers
and sisters or the Director of the Division of State Lands to
withdraw the deposits   { - upon - }   { + after + } the filing
of the affidavit. If a personal representative is appointed in an
estate where a withdrawal of deposits was made under this
section, the person withdrawing the deposits shall account for
them to the personal representative.
  (6) When a credit union transfers moneys under subsection (1)
of this section, the transferor may require the transferee to
furnish the transferor with a written indemnity agreement,
indemnifying the transferor against loss for moneys paid to the
extent of the amount of the deposit.
  (7) This section is subject to the rights of other parties to
the account under ORS 723.474 to 723.498.
  SECTION 5. ORS 723.480 is amended to read:
  723.480. (1) Sums remaining on deposit at the death of a party
to a joint account belong to the surviving party or parties
against the estate of the decedent, unless there is clear and
convincing evidence of a different intention in the credit
union's account records at the time of death of the party. If
there are two or more surviving parties, their respective
ownerships during their lifetimes shall be in proportion to their
previous ownership interests under ORS 723.478, augmented by an
equal share for each survivor of any interest the decedent may
have owned in the account immediately before death. The right of
survivorship continues between the surviving parties.
  (2) If the account is a P.O.D. account:
  (a) Upon the death of one of two or more original parties, the
rights to any sums remaining on deposit are governed by
subsection (1) of this section.
  (b) Upon the death of the sole original party or the survivor
of two or more original parties, any sums remaining on deposit
belong to the P.O.D. payee or payees, if surviving, or to the
survivor of them if one or more die before the original party. If
two or more P.O.D. payees survive, there is no right of
survivorship in the event of death of a P.O.D. payee thereafter
unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
  (3) If the account is a trust account:
  (a) Upon the death of one of two or more trustees, the rights
to any sums remaining on deposit are governed by subsection (1)
of this section.
  (b) Upon the death of the sole trustee or the survivor of two
or more trustees, any sums remaining on deposit belong to the
person or persons named as beneficiaries, if surviving, or to the
survivor of them if one or more die before the trustee, unless
there is clear and convincing evidence of a contrary intent. If
two or more beneficiaries survive, there is no right of
survivorship in the event of death of any beneficiary thereafter
unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
  (4) In other cases, the death of any party to a multiple-party
account has no effect on beneficial ownership of the account,
other than to transfer the rights of the decedent as part of the
estate of the decedent.
  (5) A right of survivorship arising under this section or from
the express terms of the account, a beneficiary designation in a
trust account or a P.O.D. payee designation cannot be changed by
will.
   { +  (6) When the Department of Human Services asserts a claim
arising under ORS 414.105 against the estate of a deceased party
to a multiple-party account, upon written request of the
department, the credit union shall provide the department with a
statement showing the amount of the account balance on the date
of death and the names and addresses of any surviving parties on
the account. + }
  SECTION 6.  { + The amendments to ORS 708A.430, 708A.470,
722.262, 723.466 and 723.480 by sections 1 to 5 of this 2003 Act
apply to the disposition of funds in accounts of depositors,
owners, members or accounts holders who die on or after the
effective date of this 2003 Act. + }
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