Louisiana SR 133: SECURITIES: Creates a task force to study the use of payable-on-death and transfer-on-death accounts and to report its findings and any recommendations for revisions to applicable Louisiana laws to the legislature.

Bill Text

SLS 26RS-3732ORIGINAL
2026 Regular Session
SENATE RESOLUTION NO. 133
BY SENATOR ABRAHAM 
SECURITIES. Creates a task force to study the use of payable-on-death and transfer-on-
death accounts and to report its findings and any recommendations for revisions to
applicable Louisiana laws to the legislature.
1A RESOLUTION
2To create a task force to study the use of payable-on-death and transfer-on-death accounts
3and to evaluate the need for revisions to applicable state laws.
4WHEREAS, Louisiana has long recognized the designation of beneficiaries on
5payable-on-death accounts as a method of account registration that does not transfer
6ownership during the lifetime of the account holder; and
7WHEREAS, Louisiana has only recently recognized transfer-on-death accounts as
8a method of registration of an account without transferring ownership; and
9WHEREAS, as a result, considerable uncertainty and litigation has developed
10concerning payable-on-death and transfer-on-death accounts; and
11WHEREAS, a comprehensive review of these provisions of law regarding both
12payable-on-death and transfer-on-death accounts is necessary to provide clarity, ensure
13consistency with state law, and evaluate whether revisions to existing law are warranted.
14THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
15does hereby establish and provide for the Task Force on Payable-on-death and Transfer-on-
16death Accounts to study the use of payable-on-death and transfer-on-death accounts, to
17evaluate the need for revisions to applicable state laws, and to propose recommendations,
18together with specific proposals for legislation, by written report to the legislature and to the
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SR NO. 133
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1David R. Poynter Legislative Research Library as required by R.S. 24:771 and 772, no later
2than March 1, 2027.
3BE IT FURTHER RESOLVED that the task force shall include, at a minimum,
4consideration of the following:
5(1) The interaction of transfer-on-death accounts with Louisiana laws on forced
6heirship, including whether the statutory entitlement of a beneficiary to proceeds "against
7the estate, heirs, and legatees" is consistent with Louisiana law governing legitime and
8reduction.
9(2) The classification of transfer-on-death account proceeds under community
10property law, including the rights of surviving spouses and the characterization of account
11funds.
12(3) The treatment of transfer-on-death accounts as nonprobate transfers, including
13the statutory exemption of proceeds from probate and whether the exemption should be
14limited or conditioned.
15(4) The legal effect of beneficiary designations made by contract, including whether
16the designations should supersede testamentary dispositions or be subject to collation,
17reduction, or other succession principles.
18(5) The requirement that beneficiary designations be executed by authentic act and
19the prohibition on electronic designations or execution by power of attorney, including the
20practical and legal implications of the requirements.
21(6) The rights, duties, and liability protections afforded to financial institutions,
22including statutory discharge from liability upon payment to a named beneficiary and the
23scope of such protections.
24(7) The extent to which heirs, forced heirs, or the estate may assert claims, including
25claims based on vices of consent, and whether the remedies are sufficient to protect
26Louisiana policy interests.
27(8) The treatment of multiple owners of transfer-on-death accounts, including
28requirements for unanimous execution and the implications for ownership rights and
29beneficiary designations.
30(9) The authority of financial institutions to impose additional contractual conditions
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SR NO. 133
SLS 26RS-3732ORIGINAL
1and the extent to which the conditions may conflict with or be preempted by law.
2(10) The treatment of secured interests, including the exclusion of pledged or
3assigned account funds from the operation of transfer-on-death provisions.
4(11) The interaction between transfer-on-death accounts and existing Louisiana laws
5governing payable-on-death accounts, multiple-party accounts, and similar beneficiary
6designations.
7(12) The rights of creditors of the decedent and whether the accounts should be
8subject to claims for debts, expenses of administration, or reimbursement.
9(13) Conflict of law issues, including recognition and enforcement of
10transfer-on-death accounts established under the laws of other states.
11(14) Consumer protection considerations, including risks of fraud, undue influence,
12or abuse, particularly in light of restrictions on power of attorney and electronic execution.
13(15) The overall compatibility of transfer-on-death and payable-on-death accounts
14with Louisiana's civil law tradition.
15(16) Recommendations for statutory revisions necessary to provide clarity,
16uniformity, and predictability in Louisiana law.
17(17) The devel