2023 Illinois Compiled Statutes › Chapter 815 - BUSINESS TRANSACTIONS › 815 ILCS 10/ - Uniform TOD Security Registration Act.

(815 ILCS 10/0.01)
Sec. 0.01. 
		Short title. 
		This Act may be cited as the Uniform TOD Security Registration Act.
(Source: P.A. 88-577, eff. 1/1/95.)
(815 ILCS 10/1)
Sec. 1. Definitions. In this Act, unless the
context otherwise requires:
(1) "Beneficiary form" means a registration of a
security which indicates the present owner of the
security and the intention of the owner regarding the
person who will become the owner of the security upon
the death of the owner.
(2) "Devisee" means any person designated in a
will to receive a disposition of real or personal
property.
(3) "Heirs" means those persons, including the
surviving spouse, who are entitled under the statutes of
intestate succession to the property of a decedent.
(4) "Person" means an individual, a corporation,
an organization, or other legal entity.
(5) "Personal representative" includes executor,
administrator, successor personal representative,
special administrator, and persons who perform
substantially the same function under the law governing
their status.
(6) "Property" includes both real and personal
property or any interest therein and means anything that
may be the subject of ownership.
(7) "Register", including its derivatives, means
to issue a certificate showing the ownership of a
certificated security or, in the case of an
uncertificated security, to initiate or transfer an
account showing ownership of securities.
(8) "Registering entity" means a person who
originates or transfers a security title by
registration, and includes a broker maintaining security
accounts for customers and a transfer agent or other
person acting for or as an issuer of securities.
(9) "Security" means a share, participation, or
other interest in property, in a business, or in an
obligation of an enterprise or other issuer, and
includes a certificated security, an uncertificated
security, and a security account.
(10) "Security account" means (i) a reinvestment
account associated with a security, a securities account
with a broker, a cash balance in a brokerage account,
cash, interest, earnings, or dividends earned or
declared on a security in an account, a reinvestment
account, or a brokerage account, whether or not credited
to the account before the owner's death, or (ii) an investment management or custody account with a trust company or trust division of a bank with trust powers, including the securities in the account, a cash balance in the account, and cash, equivalents, interest, earnings, or dividends earned or declared on a security in the account, whether or not credited to the account before the owner's death, or (iii) a cash
balance or other property held for or due to the owner
of a security as a replacement for or product of an
account security, whether or not credited to the account
before the owner's death.
(11) "State" includes any state of the United
States, the District of Columbia, the Commonwealth of
Puerto Rico, and any territory or possession subject to
the legislative authority of the United States.
(Source: P.A. 93-991, eff. 8-23-04.)
(815 ILCS 10/2)
Sec. 2. 
		
		Registration in beneficiary form; sole or
joint tenancy ownership.  Only individuals whose
registration of a security shows sole ownership by one
individual or multiple ownership by two or more with
right of survivorship, rather than as tenants in common,
may obtain registration in beneficiary form.  Multiple
owners of a security registered in beneficiary form hold
as joint tenants with right of survivorship, as tenants
by the entireties, or as owners of community property
held in survivorship form, and not as tenants in common.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/3)
Sec. 3. 
		Registration in beneficiary form; applicable law. 
		A security may be
registered in beneficiary form if the form is authorized by this or a similar
statute of the state of organization of the issuer or registering entity, the
location of the registering entity's principal office, the office of its
transfer agent or its office making the registration, or by this or a similar
statute of the law of the state listed as the owner's address at the time of
registration.  A registration governed by the law of a jurisdiction in which
this or similar legislation is not in force or was not in force when a
registration in beneficiary form was made is nevertheless presumed to be valid
and authorized as a matter of contract law.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/4)
Sec. 4. 
		Origination of registration in beneficiary form. 
		A security,
whether evidenced by certificate or account, is registered in beneficiary form
when the registration includes a designation of a beneficiary to take the
ownership at the death of the owner or the deaths of all multiple owners.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/5)
Sec. 5. 
		Form of registration in beneficiary form. 
		Registration in beneficiary
form may be shown by the words "transfer on death" or the abbreviation "TOD",
or by the words "pay on death" or the abbreviation "POD", after the name of the
registered owner and before the name of a beneficiary.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/6)
Sec. 6. 
		Effect of registration in beneficiary form and cancellation. 
		The
designation of a TOD beneficiary on a registration in beneficiary form has no
effect on ownership until the owner's death.  A registration of a security in
beneficiary form may be canceled or changed at any time by the sole owner or
all then surviving owners without the consent of the beneficiary.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/7)
Sec. 7. 
		Ownership on death of owner. 
		On death of a sole owner or the last to
die of all multiple owners, ownership of securities registered in beneficiary
form passes to the beneficiary or beneficiaries who survive all owners.  On
proof of death of all owners and compliance with any applicable requirements of
the registering entity, a security registered in beneficiary form may be
reregistered in the name of the beneficiary or beneficiaries who survived the
death of all owners.  Until division of the security after the death of all
owners, multiple beneficiaries surviving the death of all owners hold their
interests as tenants in common.  If no beneficiary survives the death of all
owners, the security belongs to the estate of the deceased sole owner or the
estate of the last to die of all multiple owners.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/8)
Sec. 8. 
		Protection of registering entity.
(a) A registering entity is not required to offer or to accept a request for
security registration in beneficiary form.  If a registration in beneficiary
form is offered by a registering entity, the owner requesting registration in
beneficiary form assents to the protections given to the registering entity by
this Act.
(b) By accepting a request for registration of a security in beneficiary
form, the registering entity agrees that the registration will be implemented
on death of the deceased owner as provided in this Act.
(c) A registering entity is discharged from all claims to a security by the
estate, creditors, heirs, or devisees of a deceased owner if it registers a
transfer of the security in accordance with Section 7 and does so in good faith
reliance (i) on the registration, (ii) on this Act, and (iii) on information
provided to it by affidavit of the personal representative of the deceased
owner, or by the surviving beneficiary or by the surviving beneficiary's
representatives, or other information available to the registering entity.  The
protections of this Act do not extend to a reregistration or payment made after
a registering entity has received written notice from any claimant to any
interest in the security objecting to implementation of a registration in
beneficiary form.  No other notice or other information available to the
registering entity affects its right to protection under this Act.
(d) The protection provided by this Act to the registering entity of a
security does not affect the rights of beneficiaries in disputes between
themselves and other claimants to ownership of the security transferred or its
value or proceeds.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/9)
Sec. 9. 
		Nontestamentary transfer on death.
(a) A transfer on death resulting from a registration in beneficiary form is
effective by reason of the contract regarding the registration between the
owner and the registering entity and this Act and is not testamentary.
(b) This Act does not limit or expand the rights of creditors of security owners
against beneficiaries and other transferees under other laws of this State.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/10)
Sec. 10. 
		Terms, conditions, and forms for registration.
(a) A registering entity offering to accept registrations in beneficiary
form may establish the terms and conditions under which it will receive
requests (i) for registrations in beneficiary form, and (ii) for implementation
of registrations in beneficiary form, including requests for cancellation of
previously registered TOD beneficiary designations and requests for
reregistration to effect a change of beneficiary.  The terms and conditions so
established may provide for proving death, avoiding or resolving any problems
concerning fractional shares, designating primary and contingent beneficiaries,
and substituting a named beneficiary's descendants to take in the place of the
named beneficiary in the event of the beneficiary's death.  Substitution may be
indicated by appending to the name of the primary beneficiary the letters LDPS,
standing for "lineal descendants per stirpes".  This designation substitutes a
deceased beneficiary's descendants who survive the owner for a beneficiary who
fails to so survive, the descendants to be identified and to share in
accordance with the law of the beneficiary's domicile at the owner's death
governing inheritance by descendants of an intestate.  Other forms of
identifying beneficiaries who are to take on one or more contingencies, and
rules for providing proofs and assurances needed to satisfy reasonable concerns
by registering entities regarding conditions and identities relevant to
accurate implementation of registrations in beneficiary form, may be contained
in a registering entity's terms and conditions.
(b) The following are illustrations of registrations in beneficiary form
which a registering entity may authorize:
(1) Sole owner - sole beneficiary: John S Brown TOD     (or POD) John S Brown Jr.
(2) Multiple owners - sole beneficiary: John S Brown     Mary B Brown JT TEN TOD John S Brown Jr.
(3) Multiple owners - primary and secondary     (substituted) beneficiaries:
(A) John S Brown Mary B Brown JT TEN TOD John S         Brown Jr SUB BENE Peter Q Brown; or
(B) John S Brown Mary B Brown JT TEN TOD John S         Brown Jr LDPS.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/11)
Sec. 11. 
		Short title; rules of construction.
(1) Short title.  See Section 0.01.
(2) This Act shall be liberally construed and applied to promote its
underlying purposes and policy and to make uniform the laws with respect to the
subject of this Act among states enacting it.
(3) Unless displaced by the particular provisions of this Act, the
principles of law and equity supplement its provisions.
(Source: P.A. 88-577, eff. 1-1-95.)
(815 ILCS 10/12)
Sec. 12. 
		Application of Act. 
		This Act applies to registrations of securities
in beneficiary form made before, on, or after the effective date of this Act,
by decedents dying on or after the effective date.
(Source: P.A. 88-577, eff. 1-1-95.)