Z-0307.1  _______________________________________________

                          HOUSE BILL 1078

          _______________________________________________

State of Washington      53rd Legislature     1993 Regular Session

By Representatives Appelwick, Padden, Ludwig, Orr and Johanson

Read first time 01/13/93.  Referred to Committee on Judiciary.

Regulating the passing of interests at death.

    AN ACT Relating to nontestamentary characterization of interests passing at death; adding new sections to chapter 11.02 RCW; and repealing RCW 11.02.090.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  (1) An otherwise effective written instrument of transfer may not be deemed testamentary solely because of a provision for a nonprobate transfer at death in the instrument.

    (2) "Provision for a nonprobate transfer at death" as used in subsection (1) of this section includes, but is not limited to, a written provision that:

    (a) Money or another benefit up to that time due to, controlled, 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 a separate writing, including a will, executed at any time;

    (b) Money or another benefit due or to become due under the instrument ceases to be payable in the event of the death of the promisee or the promisor before payment or demand; or

    (c) Property, controlled by or owned by the decedent before death, that 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 at any time.

    (3) "Otherwise effective written instrument of transfer" as used in subsection (1) of this section means:  An insurance policy; a contract of employment; a bond; a mortgage; a promissory note; a certified or uncertified security; an account agreement; a compensation plan; a pension plan; an individual retirement plan; an employee benefit plan; a joint tenancy; a community property agreement; a trust; a conveyance; a deed of gift; a contract; or another written instrument of a similar nature that would be effective if it did not contain provision for a nonprobate transfer at death.

    (4) This section only eliminates a requirement that instruments of transfer comply with formalities for executing wills under chapter 11.12 RCW.  This section does not make a written instrument effective as a contract, gift, conveyance, deed, or trust that would not otherwise be effective as such for reasons other than failure to comply with chapter 11.12 RCW.

    (5) This section does not limit the rights of a creditor under other laws of this state.

NEW SECTION. Sec. 2.  A provision in a lease of a safety deposit repository to the effect that two or more persons have access to the repository, or that purports to create a joint tenancy in the repository or in the contents of the repository, or that purports to vest ownership of the contents of the repository in the surviving lessee, is ineffective to create joint ownership of the contents of the repository or to transfer ownership at death of one of the lessees to the survivor.  Ownership of the contents of the repository and devolution of title to those contents is determined according to rules of law without regard to the lease provisions.

NEW SECTION. Sec. 3.  RCW 11.02.090 and 1974 ex.s. c 117 s 54 are each repealed.

NEW SECTION. Sec. 4.  Sections 1 and 2 of this act are each added to chapter 11.02 RCW.

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