AL HB178

Amends Section 8-6-140 of the Alabama Code to expand the types of financial institutions that may maintain transfer-on-death (TOD) accounts for securities and beneficiary designations.

Broadens the definition of "security account" to include securities, brokerage, investment management, and custody accounts maintained by securities brokers, dealers, banks, depository institutions, trust companies, investment advisers, and other financial institutions.

Clarifies that security accounts include cash balances, cash equivalents, interest, earnings, dividends, and other property held in reinvestment accounts and brokerage accounts that pass to designated beneficiaries upon the account owner's death.

Expands the definition of "registering entity" to include all financial institutions mentioned above that maintain security accounts, enabling them to process transfer-on-death registrations.

Takes effect on the first day of the third month following passage and approval by the Governor.