SB179 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Mark Slade Blackwell
Republican
Session: Regular Session 2012
Title: Security transfer of securities and security accounts, Sec. 8-6-140 am'd
Summary: Alabama SB179 broadens transfer-on-death designations to include securities, brokerage, investment management, and custody accounts at financial institutions.
What This Bill Does
The bill amends the transfer-on-death law (Section 8-6-140) to cover a wider range of accounts, including security, brokerage, investment management, and custody accounts maintained by brokers, banks, or other financial institutions. It introduces definitions to clarify terms used for TOD arrangements, such as beneficiary form and registering entity. It also sets when the act becomes effective after it is passed and approved.

Who It Affects
Individual owners who can designate beneficiaries for a broader set of financial assets, allowing assets to pass to named beneficiaries upon death without probate.
Financial institutions (brokers, banks, trust companies, investment advisers, and similar entities) that maintain these accounts and would administer TOD designations and transfers under the new rules.

Key Provisions
Amends Section 8-6-140 to include securities, brokerage, investment management, and custody accounts in TOD arrangements.
Adds and clarifies definitions (e.g., beneficiary form, registering entity, security account) to support TOD transfers and account registration.
Defines security accounts to include reinvestment accounts, cash balances, cash equivalents, and related assets held within such accounts.
Establishes the act's effective date as the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Finance