This law is called the Uniform TOD (Transfer on Death) Security Registration Act. It is designed to make it easy for individuals to pass on their securities, like stocks or bonds, directly to someone else after they die, without the need for a lengthy legal process like probate.

The act encourages the creation of a simple title form for this purpose and aims to protect companies that help make these transfers happen. The law should be interpreted broadly to achieve these goals, and general principles of law will fill in any gaps unless specifically addressed by the act.

This section defines key terms related to the designation and handling of securities and security accounts after the owner's death. A 'beneficiary form' specifies the intended new owner of a security upon the current owner's death. 'Register' involves documenting who owns a securities account. A 'registering entity' is someone who manages security titles, like brokers or transfer agents. A 'security' includes shares or interests in businesses and accounts. A 'security account' covers various financial accounts and investments tied to or resulting from securities. The term 'cash equivalent' describes investments that can be quickly turned into cash, such as treasury bills and money market funds. This law doesn't apply to multiple-owner accounts, which are covered by a different law.

This law says that only individuals who own a security solely or with someone else where the ownership passes directly to the surviving owner can register it in a 'beneficiary form'. This means the security can be inherited automatically by the survivors. However, if the ownership is shared in a way where each person owns a distinct portion (like tenants in common), it can't be registered this way.

This law allows securities, like stocks or bonds, to be registered in a beneficiary form as long as such registration is permitted by the laws of certain relevant states. This includes the state where the company issuing the security is located, where their main office is, where their transfer agent is, or where the owner's address is at the time of registration. Even if a state doesn't have such a law, the registration is still considered valid and lawful as part of a contract agreement.

This section explains that a security, like a stock or similar financial asset, is considered registered in 'beneficiary form' if it has a named beneficiary who will get ownership after the owner or all owners have died.

This law states that when registering certain accounts or assets, you can indicate who should receive them after your death by using the words 'transfer on death' (TOD) or 'pay on death' (POD). These terms should come after the owner's name and before the beneficiary's name.

This section explains that naming a Transfer on Death (TOD) beneficiary on a security only takes effect after the owner dies. While the owner is alive, they can cancel or change the beneficiary without needing the beneficiary's approval.

When the sole owner or the last owner of securities registered with named beneficiaries dies, the securities transfer to the surviving beneficiaries. After proving the death and meeting any required conditions, the securities can be re-registered in the beneficiaries' names. Until the securities are divided, multiple beneficiaries share ownership as tenants in common. If no beneficiaries survive, the securities become part of the deceased owner's estate.

This law explains that while a company handling security registrations isn't required to offer or accept registrations that designate a beneficiary, if they do, the security owner agrees to the protections provided to the company. If they accept such a registration, they must fulfill it according to the law.

Once the security is transferred correctly at the owner's death, the company is protected from claims by the owner's estate or creditors, as long as they acted in good faith based on provided information. However, protection ends if the entity receives written objections from any claimants. This law-only shields the registering entity, not the rights of beneficiaries in disagreements among themselves over the security.

When someone registers an asset in a 'transfer on death' form, it passes automatically to the named beneficiary when the owner dies, based on the contract with the registering entity. This process doesn't count as part of a will.

However, the law doesn't change the rights that a surviving spouse or creditors might have against the beneficiaries or people who receive the assets, based on other state laws.

This law allows financial institutions to set their own rules for managing beneficiary designations on accounts. These rules cover how to handle requests related to naming, canceling, or changing beneficiaries. Institutions can require proof of death, manage fractional shares, and outline how to handle primary and secondary beneficiaries, such as using the 'LDPS' designation to let descendants inherit if a beneficiary dies. The law provides examples of how to register an account with different beneficiary arrangements, such as a single owner with a single beneficiary, joint owners with a single beneficiary, or joint owners with multiple beneficiaries.

This law section states that the rules mentioned do not change the nature or rights of community property owned by spouses during a marriage. It also notes that these rules must follow the guidelines set out in another specific chapter of law.

This law states that it covers registrations of securities with a named beneficiary for cases where the person who owned these securities died on or after January 1, 1999. It applies to such registrations whether they were made before, on, or after this date.