Texas Estates Code 113.004 – Types of Accounts
Terms Used In Texas Estates Code 113.004
- 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
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fiduciary: A trustee, executor, or administrator.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes a natural person and a corporation. See Texas Estates Code 22.027
- Right of survivorship: The ownership rights that result in the acquisition of title to property by reason of having survived other co-owners.
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
In this chapter:
(1) “Convenience account” means an account that:
(A) is established at a financial institution by one or more parties in the names of the parties and one or more convenience signers; and
(B) has terms that provide that the sums on deposit are paid or delivered to the parties or to the convenience signers “for the convenience” of the parties.
(2) “Joint account” means an account payable on request to one or more of two or more parties, regardless of whether there is a right of survivorship.
(3) “Multiple-party account” means a joint account, a convenience account, a P.O.D. account, or a trust account. The term does not include an account established for the deposit of funds of a partnership, joint venture, or other association for business purposes, or an account controlled by one or more persons as the authorized agent or trustee for a corporation, unincorporated association, charitable or civic organization, or a regular fiduciary or trust account in which the relationship is established other than by deposit agreement.
(4) “P.O.D. account,” including an account designated as a transfer on death or T.O.D. account, means an account payable on request to:
(A) one person during the person’s lifetime and, on the person’s death, to one or more P.O.D. payees; or
(B) one or more persons during their lifetimes and, on the death of all of those persons, to one or more P.O.D. payees.
(5) “Trust account” means an account in the name of one or more parties as trustee for one or more beneficiaries in which the relationship is established by the form of the account and the deposit agreement with the financial institution and in which there is no subject of the trust other than the sums on deposit in the account. The deposit agreement is not required to address payment to the beneficiary. The term does not include:
(A) a regular trust account under a testamentary trust or a trust agreement that has significance apart from the account; or
(B) a fiduciary account arising from a fiduciary relationship, such as the attorney-client relationship.