Kansas Statutes 17-2263. Contracts for payment of members’ accounts to beneficiaries upon members’ deaths; rights of member during lifetime; change of beneficiary
Terms Used In Kansas Statutes 17-2263
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Conservator: means an individual or corporation appointed by the court to act on behalf of a conservatee and possessed of some or all of the powers and duties set out in Kan. See Kansas Statutes 77-201
- Contract: A legal written agreement that becomes binding when signed.
- Fiduciary: A trustee, executor, or administrator.
- Joint tenancy: A form of property ownership in which two or more parties hold an undivided interest in the same property that was conveyed under the same instrument at the same time. A joint tenant can sell his (her) interest but not dispose of it by will. Upon the death of a joint tenant, his (her) undivided interest is distributed among the surviving joint tenants.
- Minor: means any person defined by Kan. See Kansas Statutes 77-201
- Property: includes personal and real property. See Kansas Statutes 77-201
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
(a) Subject to the provisions of this section and Kan. Stat. Ann. § 17-2264, and amendments thereto, an individual adult or minor, hereafter referred to as the member, may enter into a written contract with any credit union located in this state providing that the balance of the member’s account, or the balance of the member’s legal share of an account, at the time of death of the member shall be made payable on the death of the member to one or more persons or, if the persons predecease the owner, to another person or persons, hereafter referred to as the beneficiary or beneficiaries. If any beneficiary is a minor at the time the account, or any portion of the account, becomes payable to the beneficiary and the balance, or portion of the balance, exceeds the amount specified by Kan. Stat. Ann. § 59-3053, and amendments thereto, the moneys shall be payable only to a conservator of the minor beneficiary.
(b) Transfers pursuant to this section shall not be considered testamentary or be invalidated due to nonconformity with the provisions ofchapter 59 of the Kansas Statutes Annotated, and amendments thereto.
(c) Every contract authorized by this section shall be considered to contain a right on the part of the member during the member’s lifetime both to withdraw funds on deposit in the account in the manner provided in the contract, in whole or in part, as though no beneficiary has been named, and to change the designation of beneficiary. The interest of the beneficiary shall be considered not to vest until the death of the member and, if there is a claim pursuant to Kan. Stat. Ann. § 39-709, and amendments thereto, until such claim is satisfied.
(d) No change in the designation of the beneficiary shall be valid unless executed in the form and manner prescribed by the credit union and delivered to the credit union prior to the death of the member.
(e) For the purposes of this section, the balance of the member’s account or the balance of the member’s legal share of an account shall not be construed to include any portion of the account that under the law of joint tenancy is the property of another joint tenant of the account, upon the death of the owner.
(f) As used in this section, “person” means any individual, individual or corporate fiduciary or nonprofit religious or charitable organization as defined by Kan. Stat. Ann. § 79-4701, and amendments thereto.