AL SB179

Amends Section 8-6-140 of the Alabama Code to expand 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.

Includes within the definition of security accounts: reinvestment accounts, cash balances, cash equivalents (Treasury bills, money market funds, savings bonds, short-term instruments), and any interest, earnings, or dividends earned on securities in such accounts.

Allows transfer-on-death (TOD) designations for a broader range of financial accounts and property held within those accounts, enabling account owners to designate beneficiaries to receive assets upon death.

Effective date is the first day of the third month following passage and approval by the Governor, or upon becoming law through other means.

Passed the Senate on April 19, 2012 and the House of Representatives on April 26, 2012.