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

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2026 Regular Session
HOUSE BILL NO. 489
BY REPRESENTATIVES GADBERRY, BEAULLIEU, AND MCMAKIN
BANKS/BANKING: Provides with respect to "Transfer of Death" (TOD) beneficiary
designations for investment accounts
1 AN ACT
2 To amend and reenact R.S. 9:1711, 1711.2(A), 1711.4, and 1711.6(C), relative to the
3 Louisiana Uniform Transfer On Death Security Registration Act; to provide for
4 legislative findings and intent; to provide for definitions; to provide for registration
5 of securities in beneficiary form; to provide for effects of a security registered in
6 beneficiary form; to provide exemptions for liability; to provide for legislative
7 purpose; to provide for an effective date; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 9:1711, 1711.2(A), 1711.4, and 1711.6(C) are hereby amended and
10 reenacted to read as follows:
11 §1711. Findings; purpose; Definitions definitions
12 A. The legislature finds that:
13 (1) The law of this state authorizes payable-on-death or transfer-on-death
14 beneficiary designations for bank accounts, credit unions, savings associations, life
15 insurance, and retirement accounts.
16 (2) Investment and brokerage accounts often represent a significant portion
17 of a family's non-retirement assets.
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1 (3) Lack of clarity regarding transfer-on-death registration for securities has
2 resulted in frozen accounts, unnecessary probate delays, exposure to market risk, and
3 financial hardship for the families of this state.
4 (4) Clarification is necessary to ensure consistent implementation while
5 preserving this state's succession, community property, and forced heirship
6 principles.
7 B. The legislature intends this Chapter to recognize and require
8 implementation of transfer-on-death registration for individually-owned securities,
9 brokerage accounts holding securities, and accounts maintained by broker-dealers,
10 custodians, transfer agents, financial advisors, and investment advisors, and similar
11 fiduciaries.
12 C. In this Chapter, the following definitions shall apply unless the context
13 otherwise requires:
14 (1) "Beneficiary form" means a registration of a security that indicates the
15 present owner or co-owners of the security and the designation of the person in
16 whose name the security is to be registered upon the death of the owner or co-owner.
17 (2) "Good faith" has the same meaning as provided in R.S. 10:1-201.
18 (3) "Registering entity" means a person who originates or transfers a security
19 title by registration, and includes a broker, custodian, financial advisor, or similarly-
20 situated fiduciary maintaining security accounts for customers and a transfer agent
21 or other person acting for or as an issuer of securities.
22 (4) "Security" means a share, participation, or other interest in movable
23 property, in a business, or in an obligation of an enterprise or other issuer, and
24 includes a certificated security, an uncertificated security, and a security account.
25 It shall not include a share, participation, or other interest in immovable property.
26 (5) "Security account" means the following:
27 (a) A reinvestment account associated with a security, a securities account
28 with a broker, a cash balance in a brokerage account, cash, interest, earnings, or
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1 dividends earned or declared on a security in an account, a reinvestment account, or
2 a brokerage account, whether or not credited to the account before the owner's death.
3 (b) A cash balance or other property held for or due to the owner of a
4 security as a replacement for or product of an account security, whether or not
5 credited to the account before the owner's death.
6 (6) "State" includes any state of the United States, the District of Columbia,
7 the Commonwealth of Puerto Rico, and any territory or possession subject to the
8 legislative authority of the United States.
9 * * *
10 §1711.2. Registration in beneficiary form; applicable law
11 A. Notwithstanding any provisions of law to the contrary, A a security may
12 shall be registered in beneficiary form if the form is authorized by this or a similar
13 statute of the state of organization of the issuer or registering entity, the location of
14 the registering entity's principal office, the office of its transfer agent or its office
15 making the registration, or by this or a similar statute of the law of the state listed as
16 the owner's address at the time of registration. A registration governed by the law of
17 a jurisdiction in which this or similar legislation is not in force or was not in force
18 when a registration in beneficiary form was made is nevertheless presumed to be
19 valid and authorized as a matter of contract law.
20 * * *
21 §1711.4. Effect of registration in beneficiary form
22 A registration of a security in beneficiary form does not constitute a donation
23 inter vivos or mortis causa. A registration of a security in beneficiary form acts as
24 a method of transfer subject to existing law and does not alter substantive rights
25 related to community property or forced heirship. A registration of a security in
26 beneficiary form may be canceled or changed at any time by the sole owner or by
27 any of the surviving owners without the consent of the beneficiary.
28 * * *
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1 §1711.6. Registering entity
2 * * *
3 C.(1) A registering entity shall not be held liable and is discharged from all
4 claims to a security by the estate, surviving spouse, creditors, heirs, legatees, or
5 forced heirs of a deceased owner if it registers a transfer of the security in accordance
6 with this Chapter and does so in good faith reliance on the registration in beneficiary
7 form, on this Chapter, and on information provided to it by affidavit of the
8 succession representative of the deceased owner, or by the surviving beneficiary or
9 by the surviving beneficiary's representatives.
10 (2) A registering entity shall not be held liable for failure to do any of the
11 following:
12 (a) Investigate succession disputes.
13 (b) Determine heirship or forced heirship rights.
14 (c) Resolve community property claims.
15 (3) The protections of this Chapter do not extend to a registration or payment
16 made after a registering entity has received written notice from any claimant to any
17 interest in the security objecting to implementation of a registration in beneficiary
18 form. No other notice or information available to the registering entity affects its
19 right to protection under this Chapter.
20 * * *
21 Section 2. It is the intent of this legislature that Chapter 4 of Code Title I of Code
22 Book III of Title 9 of the Louisiana Revised Statutes of 1950 be interpreted in the same
23 manner as and in accordance with similar transfer-on-death provisions of the Louisiana
24 Revised Statutes of 1950, including but not limited to accounts with banks as provided in
25 R.S. 6:314, with savings associations as provided in R.S. 6:766.1, and with credit unions as
26 provided in R.S. 6:653.1.
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1 Section 3. This Act shall become effective upon signature by the governor or, if not
2 signed by the governor, upon expiration of the time for bills to become law without signature
3 by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If
4 vetoed by the governor and subsequently approved by the legislature, this Act shall become
5 effective on the day following such approval.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 489 Engrossed 2026 Regular Session Gadberry
Abstract: Provides with respect to "Transfer of Death" (TOD) beneficiary designations for
investment accounts.
Proposed law provides for legislative findings and purpose.
Present law defines "registering entity".
Proposed law amends this definition to include a custodian, financial advisor, or similarly-
situated fiduciary maintaining security accounts for customers.
Present law provides the legal basis for the registration of a security in beneficiary form.
Proposed law clarifies that this legal basis applies notwithstanding any law to the contrary.
Present law provides that a security may be registered in beneficiary form if the form is
authorized by this 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.
Proposed law amends present law to provide that a security shall be registered in beneficiary
form if the form is authorized by the above.
Present law provides for the effect of registering a security in beneficiary form.
Proposed law clarifies that this registration is a method of transfer subject to existing law and
does not alter substantive rights related to community property and forced heirship.
Present law provides for when a registering entity may not be held liable for a transfer of a
security to the authorized beneficiary.
Proposed law adds that the registering entity shall not be held liable for failure to do any of
the following:
(1) Investigate succession disputes.
(2) Determine heirship or forced heirship rights.
(3) Resolve community property claims.
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HB NO. 489
Proposed law provides for legislative intent.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 9:1711, 1711.2(A), 1711.4, and 1711.6(C))
Summary of Amendments 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 beneficiary form 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 entity shall 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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