(a)  A transfer on death resulting from a registration in beneficiary form pursuant to this chapter is effective by reason of the contract regarding the registration between the owner and the registering entity, is not testamentary, and any security being transferred by it is not considered an asset of the decedent‘s estate subject to probate.

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Terms Used In Rhode Island General Laws 7-11.1-10

  • 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
  • Contract: A legal written agreement that becomes binding when signed.
  • Decedent: A deceased person.
  • Probate: Proving a will
  • Registering entity: means a person who or that 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. See Rhode Island General Laws 7-11.1-2
  • 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. See Rhode Island General Laws 7-11.1-2
  • 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. See Rhode Island General Laws 7-11.1-2

(b)  This chapter does not limit the rights of creditors of security owners against beneficiaries and other transferees under other laws of the state.

History of Section.
P.L. 1998, ch. 260, § 1.