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Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

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Tuesday, June 3, 2014

UCC Governs Whether Securities Transferred After Death Are Part of the Probate Estate

GavelIn a South Carolina case decided earlier this year, the husband gave a bank with which he had a discretionary account agreement instructions to transfer various investments to his wife’s investment account.  The transfer was made in four stages, two completed before husband’s death and two after.  Litigation arose between the wife and the personal representative of the husband’s estate over the ownership of the securities transferred after death.

In In re Estate of Rider, 756 S.E.2d 136 (2014), the Supreme Court of South Carolina held that the provisions of the South Carolina U.C.C. controlled, specifically Article 8, under which the bank was required to comply with husband’s direction to transfer property to his wife who became entitled to the property when the husband’s direction was complete, thereby giving her ownership of all of the transferred property. 

Special thanks to William LaPiana (Professor of Law, New York Law School) for bringing this case to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2014/06/ucc-governs-whether-securities-transferred-after-death-are-part-of-the-probate-estate.html

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Comments

Was this essentially like any other POD contractual arrangement, then, with the question being whether there was a contract that state law would recognize and enforce? ( I admit to being too lazy to look up the case and read it.) Donna Byrne, Professor of Law, William Mitchell College of Law, St. Paul, MN.

Posted by: Donna Byrne | Jun 3, 2014 4:25:07 AM

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