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F I S C A L I M P A C T R E P O R T

SPONSOR Robinson

DATE TYPED 02/16/05 HB

SHORT TITLE Transfer of Death Securities

SB 563

ANALYST Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates

HB 656

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General (AGO)

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of Bill

Senate Bill 563 expands the definition of security account to include an individual’s account held

at trust companies and bank trust departments for the purposes of the Transfer on Death portion

of the Uniform Probate Code.

Significant Issues

By including accounts held at trust companies and bank trust departments, the bill allows for the

nonprobate transfer of these accounts upon the individual’s death.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This bill duplicates House Bill 656

Senate Bill 563 -- Page 2

TECHNICAL ISSUES

The AGO writes: “Those states that define ‘security account’ in statute, Colorado, Idaho, Illi-

nois, Minnesota, Nebraska, South Dakota and Washington all use the following language for a

‘security account.’ New Mexico may want to be consistent with these other states:

“Security account means (i) a reinvestment account associated with a security, a securities

account with a broker, a cash balance in a brokerage account, cash, interest, earnings, or

dividends earned or declared on a security in an account, a reinvestment account, or a bro-

kerage account, whether or not credited to the account before the owner's death, (ii) an in-

vestment management or custody account with a trust company or a trust department of a

bank with trust powers, including the securities in the account, a cash balance in the account,

and cash, cash equivalents, interest, earnings, or dividends earned or declared on a security in

the account, whether or not credited to the account before the owner's death, or (iii) a cash

balance or other property held for or due to the owner of a security as a replacement for or

product of an account security, whether or not credited to the account before the owner's

death.”

EF/yr