RS 1421 - Joint securities accounts; surviving account holder; definitions
A. For purposes of this Section, the following terms shall have the following meanings:
(1) "Broker or securities firm" means a person defined as a broker or dealer under the federal securities laws, and also includes a bank acting in that capacity.
(2) "Joint securities or brokerage account" means an account which is titled in the name of a husband and wife, which is registered as a community property account, and which requires the endorsement of both husband and wife in order to assign, transfer, or redeem a security, or to grant the power to assign, transfer, or redeem a security.
(3) "Securities or brokerage account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.
(4) "Security" means a security as defined by R.S. 10:8-102(a).
B. Upon the death of a joint securities or brokerage account holder and with the authorization and direction of the surviving account holder, a broker or securities firm may sell or transfer securities held in the account not to exceed fifty percent of the value of each security held in the joint securities account. The value of the securities shall be determined as of the date of the death of the decedent.
C. The surviving account holder shall have the right to withdraw the funds or assets generated pursuant to the provisions of Subsection B of this Section; however, the right of withdrawal shall terminate upon the delivery of written notice to the broker or securities firm of the appointment of an executor or administrator of the estate of the decedent.
D. A broker or securities firm paying a surviving joint securities or brokerage account holder in accordance with the provisions of this Section shall not be liable to the estate or any heir of the decedent nor shall the securities or brokerage account holder be liable for any estate, inheritance, or succession taxes which may be due to the state, and delivery of the funds shall constitute a full and complete discharge of the broker or securities firm for the payment or delivery so made and shall relieve the broker or securities firm from all adverse claims by a person claiming as a surviving or former spouse or a successor to such a spouse.
E. The provisions of this Section shall not prohibit any right of forced heirship or the collation or collection of funds due to any spouse, heir, legatee, creditor, or other person having rights or claims to funds of the deceased account holder.
F. The provisions of this Section shall not be applicable if a petition for the divorce of the joint securities or brokerage account holders has been filed, the final settlement of the community property is pending at the time of the death of the account holder, and written notice of the filing of the petition for divorce has been delivered to the broker or securities firm.
Acts 2018, No. 167, §1.