Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Park
DATE TYPED 02/16/05 HB 656
SHORT TITLE Transfer of Death Securities
SB
ANALYST Ford
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates
SB 563
SOURCES OF INFORMATION
LFC Files
Responses Received From
Attorney General (AGO)
Regulation and Licensing Department (RLD)
SUMMARY
Synopsis of Bill
House Bill 656 expands the definition of security account to include an individual’s account held
at trust companies and bank trust departments for the purposes of the Transfer on Death portion
of the Uniform Probate Code.
Significant Issues
By including accounts held at trust companies and bank trust departments, the bill allows for the
nonprobate transfer of these accounts upon the individual’s death.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
This bill duplicates Senate Bill 563
pg_0002
House Bill 656 -- Page 2
TECHNICAL ISSUES
The AGO writes: “Those states that define ‘security account’ in statute, Colorado, Idaho, Illi-
nois, Minnesota, Nebraska, South Dakota and Washington all use the following language for a
‘security account.’ New Mexico may want to be consistent with these other states:
“Security account means (i) a reinvestment account associated with a security, a securities
account with a broker, a cash balance in a brokerage account, cash, interest, earnings, or
dividends earned or declared on a security in an account, a reinvestment account, or a bro-
kerage account, whether or not credited to the account before the owner's death, (ii) an in-
vestment management or custody account with a trust company or a trust department of a
bank with trust powers, including the securities in the account, a cash balance in the account,
and cash, cash equivalents, interest, earnings, or dividends earned or declared on a security in
the account, whether or not credited to the account before the owner's death, or (iii) a cash
balance or other property held for or due to the owner of a security as a replacement for or
product of an account security, whether or not credited to the account before the owner's
death.”
EF/lg