BILL NUMBER: AB 1520	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gatto

                        JANUARY 16, 2014

   An act to amend Section 5003 of the Probate Code, relating to
nonprobate transfers.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1520, as introduced, Gatto. Nonprobate transfers.
   Existing law excepts from probate the transfer on death of various
property interests. Existing law permits a holder of this type of
property to transfer the property in compliance with a provision for
a nonprobate transfer on death that satisfies the terms of the
instrument, whether or not the transfer is consistent with the
beneficial ownership of the property, as specified.
   This bill would make nonsubstantive changes to these provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5003 of the Probate Code is amended to read:
   5003.  (a) A holder of property under an instrument of a type
described in Section 5000 may transfer the property in compliance
with a provision for a nonprobate transfer on death that satisfies
the terms of the instrument, whether or not the transfer is
consistent with the beneficial ownership of the property as between
the person who executed the provision for transfer of the property
and other persons having an interest in the property or their
successors, and whether or not the transfer is consistent with the
rights of the person named as beneficiary.
   (b) Except as provided in this subdivision,  no 
notice or other information shown to have been available to the
holder of the property  affects   does not
affect  the right of the holder to the protection provided by
subdivision (a). The protection provided by subdivision (a) does not
extend to a transfer made after either of the following events:
   (1) The holder of the property has been served with a contrary
court order.
   (2) The holder of the property has been served with a written
notice of a person claiming an adverse interest in the property.
However, this paragraph does not apply to a pension plan to the
extent the transfer is a periodic payment pursuant to the plan.
   (c) The protection provided by this section does not affect the
rights of the person who executed the provision for transfer of the
property and other persons having an interest in the property or
their successors in disputes among themselves concerning the
beneficial ownership of the property.
   (d) The protection provided by this section is not exclusive of
any protection provided the holder of the property by any other
provision of law.
   (e) A person shall not serve notice under paragraph (2) of
subdivision (b) in bad faith. If the court in an action or proceeding
relating to the rights of the parties determines that a person has
served notice under paragraph (2) of subdivision (b) in bad faith,
the court shall award against the person the cost of the action or
proceeding, including a reasonable attorney's fee, and the damages
caused by the service.