(1)A provision for a nonprobate
transfer on death in an insurance policy, contract of employment, bond, mortgage,
promissory note, certificated or uncertificated security, account agreement,
custodial agreement, deposit agreement, compensation plan, pension plan,
individual retirement plan, employee benefit plan, trust, conveyance, deed of gift,
marital property agreement, or other written instrument of a similar nature is
nontestamentary. This subsection (1) includes a written provision that:
(a)Money or other benefits due to, controlled by, or owned by a decedent
before death must be paid after the decedent's death to a person whom the
decedent designates either in the instrument or in a separate writing, including a
will, executed either before or at the same time as the ins
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(1) A provision for a nonprobate
transfer on death in an insurance policy, contract of employment, bond, mortgage,
promissory note, certificated or uncertificated security, account agreement,
custodial agreement, deposit agreement, compensation plan, pension plan,
individual retirement plan, employee benefit plan, trust, conveyance, deed of gift,
marital property agreement, or other written instrument of a similar nature is
nontestamentary. This subsection (1) includes a written provision that:
(a) Money or other benefits due to, controlled by, or owned by a decedent
before death must be paid after the decedent's death to a person whom the
decedent designates either in the instrument or in a separate writing, including a
will, executed either before or at the same time as the instrument, or later;
(b) Money due or to become due under the instrument ceases to be payable
in the event of death of the promisee or the promisor before payment or demand; or
(c) Any property controlled by or owned by the decedent before death which
is the subject of the instrument passes to a person the decedent designates either
in the instrument or in a separate writing, including a will, executed either before or
at the same time as the instrument, or later.
(1.5) A conveyance or deed of gift described in subsection (1) of this section
that relates to an interest in real property may be created pursuant to part 4 of this
article and, if so created, shall be subject to the rights of third parties described in
part 4 of this article.
(2) Under the provisions of subsection (1) of this section, it is permissible to
designate as a beneficiary, payee, or owner a trustee named in an inter vivos or
testamentary trust in existence at the date of such designation. It is not necessary
to the validity of any such trust that there be in existence a trust corpus other than
the right to receive the benefits or to exercise the rights resulting from such a
designation. It is also permissible to designate as a beneficiary, payee, or owner a
trustee named in, or ascertainable under, the will of the designator. The benefits or
rights resulting from such a designation shall be payable or transferable to the
trustee upon admission of the will to probate if a testamentary trustee is the
designated payee or transferee, subject to the right of the payer to impose
requirements and take actions as may a personal representative acting under
section 15-12-913. A trustee shall not be disqualified to receive such benefits or
rights merely because the trust under which he was to act or is acting fails to come
into existence or has been distributed in part or whole, but such a trustee shall
receive and distribute the proceeds in accord with the terms of such trust.
(3) If a trustee is designated pursuant to subsection (2) of this section and no
qualified trustee makes claim to the benefits or rights resulting from such a
designation within one year after the death of the designator, or if evidence
satisfactory to the person obligated to make the payment or transfer is furnished
within such one-year period that there is or will be no trustee to receive the
proceeds, payment or transfer shall be made to the personal representative of the
designator, unless otherwise provided by such designation or other controlling
agreement made during the lifetime of the designator.
(4) The payment of the benefits due or a transfer of the rights given under a
designation pursuant to subsection (2) or (3) of this section and the receipt for such
payment or transfer executed by the trustee or other authorized payee thereof
shall constitute a full discharge and acquittance of the person obligated to make
the payment or transfer.
(5) Payment of the benefits due or the transfer of the rights given in
accordance with a designation under the provisions of subsection (2) of this section
shall not cause such benefits or rights to be included in the property administered
as part of the designator's estate under this code or to be subject to the claims of
his or her creditors, except as provided in part 2 of article 11 of this title and in
section 15-15-103.
(6) Except as otherwise provided in part 2 of article 11 of this title and in
section 15-15-103, the express provisions of the trust agreement, declaration of
trust, or testamentary trust shall control and regulate the extent to which the
benefits or rights payable or transferable under such a designation shall be subject
to the debts of the designator if paid or transferred under the provisions of
subsection (2) of this section.
(7) Repealed.