HB 489 — BANKS/BANKING: Provides with respect to "Transfer of Death" (TOD) beneficiary designations for investment accounts

HLS 26RS-563 ORIGINALENGROSSED Regular Session HOUSE BILL NO.

489 BY REPRESENTATIVEREPRESENTATIVES GADBERRYGADBERRY, BEAULLIEU, AND MCMAKIN BANKS/BANKING:

(1) LouisianaThe law of this state authorizes payable-on-death or transfer-on-death beneficiarydesignations for bank accounts, credit unions, savings associations, life insurance, and retirement accounts.

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HLS 26RS-563 ORIGINALENGROSSED HB NO.

489 (3) Lack ofclarityregardingtransfer-on-deathregistration for securities has resultedinfrozenaccounts,unnecessaryprobatedelays,exposuretomarketrisk,and financial hardship for Louisianathe families.families of this state.

(4) Clarification is necessary to ensure consistent implementation while preserving Louisianathis state's succession, community property, and forced heirship principles.

The legislature intends this Chapter to recognize and allowrequire implementation of transfer-on-death registration for individually-owned securities, brokerage accounts holding securities, and accounts maintained by broker-dealers, custodians, transfer agents, financial advisors, and investment advisors, and similar fiduciaries.

(a) A reinvestment account associated with a security, a securities account with a broker, a cash balance in a brokerage account, cash, interest, earnings, or Page 2 of 56 CODING:

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Notwithstanding anyprovisions of law to the contrary, A a securitymay shall be registered in beneficiaryformbeneficiary form if the form is authorized bythisby this or a similar statute of the state of organization of the issuer or registering entity, the location of the registeringentity'sprincipaloffice,theofficeofitstransferagentoritsofficemakingregistering entity's principal office, the registration,office of its transfer agent or byits thisoffice making the registration, or bythis or a similar statute of the law of the state listed as the owner's address at the time of registration.

A registration governed bybythe the law of a jurisdiction in which this or similar legislation is not in force or was not in force when a registration in beneficiary form was made is nevertheless presumed to be valid and authorized as a matter of contract law.

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(d) Delayanauthorizedtransfer-on-deathunlesspursuanttoacourtorderor injunction.

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1:13(B) and 24:177(E)] HB 489 OriginalEngrossed 2026 Regular Session Gadberry Abstract:

Present law provides that a security may be registered in beneficiary form if the form is authorized bythis or a similar statute of the state of organization of the issuer or registering entity, the location of the registering entity's principal office, the office of its transfer agent or its office making the registration, or by this or a similar statute of the law of the state listed as the owner's address at the time of registration.

Proposedlawamendspresentlawtoprovidethatasecurityshallberegisteredinbeneficiary form if the form is authorized by the above.

Proposed law adds that the registering entityentityshall shall not be held liable for failure to do anyof the following:

(4)Page Delayanauthorizedtransfer-on-deathunlesspursuantto5 acourtorderorof injunction.6 CODING:

ProposedWordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored laware providesadditions. for legislative intent.

HLS 26RS-563 ENGROSSED HB NO.

489 Proposed law provides for legislative intent.

9:1711, 1711.2(A), 1711.4, and 1711.6(C)) PageSummary 5 of 5Amendments CODING:Adopted by House The Committee Amendments Proposed by House Committee on Commerce to the original bill:

1.

Make technical changes.

2.

Require a security to be registered in beneficiaryform if the form is authorized by proposed law or a similar statute of the state of organization of the issuer or registering entity, the location of the registering entity's principal office, the office of its transfer agent or its office making the registration, or by proposed law or a similar statute of the law of the state listed as the owner's address at the time of registration.

3.

Remove proposed law that a registering entityshall not be held liable for failure to delay an authorized transfer-on-death unless pursuant to a court order or injunction.

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