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 5003 of the Probate Code is amended to
2read:
(a) A holder of property under an instrument of a type
4described in Section 5000 may transfer the property in compliance
5with a provision for a nonprobate transfer on death that satisfies
6the terms of the instrument, whether or not the transfer is consistent
7with the beneficial ownership of the property as between the person
8who executed the provision for transfer of the property and other
P2 1persons having an interest in the property or their successors, and
2whether or not the transfer is consistent with the rights of the person
3named as beneficiary.
4(b) Except as provided in this subdivision,begin delete noend delete notice or other
5information shown to have been
available to the holder of the
6propertybegin delete affectsend deletebegin insert
does not affectend insert the right of the holder to the
7protection provided by subdivision (a). The protection provided
8by subdivision (a) does not extend to a transfer made after either
9of the following events:
10(1) The holder of the property has been served with a contrary
11court order.
12(2) The holder of the property has been served with a written
13notice of a person claiming an adverse interest in the property.
14However, this paragraph does not apply to a pension plan to the
15extent the transfer is a periodic payment pursuant to the plan.
16(c) The protection provided by this section does not affect the
17rights of the person who executed the provision for transfer of the
18property and other persons having an interest in the property or
19their successors in disputes among themselves concerning
the
20beneficial ownership of the property.
21(d) The protection provided by this section is not exclusive of
22any protection provided the holder of the property by any other
23provision of law.
24(e) A person shall not serve notice under paragraph (2) of
25subdivision (b) in bad faith. If the court in an action or proceeding
26relating to the rights of the parties determines that a person has
27served notice under paragraph (2) of subdivision (b) in bad faith,
28the court shall award against the person the cost of the action or
29proceeding, including a reasonable attorney’s fee, and the damages
30caused by the service.
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