Brief ⁽¹⁾

SB 485 enacts Section 101 of the Uniform Nonprobate Transfer on Death Act into Kansas law. Specifically, the bill provides that a provision for a nonprobate transfer on death in an insurance policy, employment contract, bond, mortgage, promissory note, pension plan, individual retirement account, and the other items listed are nontestamentary in nature and therefore do not need to comply with the formalities of a will.

Background

The bill was supported by a representative of the Security Benefit Life Insurance Company. The conferee said that in 1994 the Kansas Legislature adopted Section 301 of the Uniform Nonprobate Transfer on Death Act, i.e., the Uniform Transfer on Death Security Registration Act (KSA 17-49a01 et seq.). Prior to 1994, the Legislature had already adopted Section 201 of the Uniform Act dealing with pay-on-death bank accounts. By enacting section 101, the remaining section of the Act, Kansas would remove any doubt as to the validity of provisions for nonprobate transfers in IRAs, tax sheltered annuities, retirement plans, and other instruments.

The bill does not affect the surviving spouse's right of election under the Uniform Probate Code since these instruments would be considered part of the augmented estate.

The bill has no fiscal impact on the state.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html