CSHB 196(JUD): "An Act relating to the handling of matters after a person's death."
00 CS FOR HOUSE BILL NO. 196(JUD) 01 "An Act relating to the handling of matters after a person's death." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 13.12.517 is amended to read: 04 Sec. 13.12.517. Penalty clause for contest. A provision in a will purporting to 05 penalize an interested person for contesting the will or instituting other proceedings 06 relating to the estate is enforceable even [UNENFORCEABLE] if probable cause 07 exists for instituting proceedings. 08 * Sec. 2. AS 13.16.680(a) is amended to read: 09 (a) Thirty days after the death of a decedent, any person indebted to the 10 decedent or having possession of tangible personal property or an instrument 11 evidencing a debt, obligation, stock, or chose in action belonging to the decedent shall 12 make payment of the indebtedness or deliver the tangible personal property or an 13 instrument evidencing a debt, obligation, stock, or chose in action to a person claiming 14 to be the successor of the decedent upon being presented an affidavit made by or on 15 behalf of the successor stating that
01 (1) the [VALUE OF THE] entire estate, wherever located, less liens 02 and encumbrances, consists only of not more than 03 (A) vehicles subject to registration under AS 28.10.011 with 04 a total value that does not exceed $100,000; and 05 (B) personal property, other than vehicles described in (A) 06 of this paragraph, that does not exceed $25,000 [$15,000]; 07 (2) 30 days have elapsed since the death of the decedent; 08 (3) no application or petition for the appointment of a personal 09 representative is pending or has been granted in any jurisdiction; and 10 (4) the claiming successor is entitled to payment or delivery of the 11 property. 12 * Sec. 3. AS 13.16.700 is amended to read: 13 Sec. 13.16.700. Settlement directed by court. When a judge receives 14 information that a person has died in the judge's judicial district leaving an estate with 15 property limited to the property described under AS 13.16.680(a)(1) [OF $15,000] 16 or less and no qualified person has appeared to take charge of the assets, the judge 17 may immediately appoint a person, corporation, or attorney to settle the estate in the 18 manner provided for in AS 13.16.680 - 13.16.695. 19 * Sec. 4. AS 13.33.101 is amended by adding new subsections to read: 20 (d) The money or other benefits paid under a provision for a nonprobate 21 transfer on death in a life insurance contract or a retirement plan are not subject to 22 (1) the debts of the individual who was insured under the life insurance 23 contract or who was a participant in the retirement plan; or 24 (2) the claims of the creditors of the individual who was insured under 25 the life insurance contract or who was a participant in the retirement plan. 26 (e) The provisions of (d) of this section apply even if 27 (1) the provision for a nonprobate transfer on death is contained in the 28 life insurance contract or the retirement plan and designates the person to whom the 29 money or other benefits are to be paid if the person who is the owner or insured under 30 the life insurance policy or the participant in the retirement plan does not select a 31 beneficiary;
01 (2) the life insurance contract, retirement plan, or a provision for a 02 nonprobate transfer on death in the life insurance contract or retirement plan, makes 03 the money or other benefits payable, directly or indirectly, to 04 (A) a decedent's estate or the personal representative of a 05 decedent's estate, except that if the decedent owes money for child support 06 arrearages, for spousal support arrearages, or under AS 47.07.055, the 07 provisions of (d) of this section do not apply; in this subparagraph, "personal 08 representative" has the meaning given in AS 13.06.050; 09 (B) a trustee of a trust established under a will, except that if 10 the decedent owes money for child support arrearages, for spousal support 11 arrearages, or under AS 47.07.055, the provisions of (d) of this section do not 12 apply; or 13 (C) a trustee of a trust instrument that is separate from the life 14 insurance contract or retirement plan and that designates the ultimate 15 beneficiary; 16 (3) a trust to which the money or other benefits are payable may be 17 amended, revoked, or both amended and revoked, or is funded or unfunded; or 18 (4) the settlor of the trust to which the money or other benefits are 19 payable has reserved all rights of ownership in the life insurance contract or under the 20 retirement plan. 21 (f) The provisions of (d) of this section do not limit the rights of the owner of 22 a life insurance contract to pledge or assign by contract the money or other benefits 23 from a life insurance contract as collateral for the debts of the owner. 24 (g) In (d) of this section, 25 (1) "life insurance contract" means a life insurance policy, an annuity 26 contract, an endowment contract, and a contract entered into by an insurance company 27 in connection with, supplemental to, or in settlement of a life insurance policy, an 28 annuity contract, or an endowment contract; 29 (2) "retirement plan" means 30 (A) a retirement plan that is qualified under 26 U.S.C. 401(a), 31 26 U.S.C. 403(a), 26 U.S.C. 403(b), 26 U.S.C. 408, 26 U.S.C. 408A, or 26
01 U.S.C. 409 (Internal Revenue Code); and 02 (B) the amounts held in the teachers' retirement system under 03 AS 14.25, judicial retirement system under AS 22.25, public employees' 04 retirement system under AS 39.35, or elected public officers' retirement system 05 under former AS 39.37. 06 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 APPLICABILITY. (a) AS 13.16.680(a), as amended by sec. 2 of this Act, and 09 AS 13.16.700, as amended by sec. 3 of this Act, apply to a decedent if the decedent dies on or 10 after the effective date of this Act. 11 (b) AS 13.33.101(d), (e), (f), and (g), as added by sec. 4 of this Act, apply to 12 provisions for a nonprobate transfer on death in a life insurance contract or a retirement plan 13 that are made before, on, or after the effective date of this Act. In this subsection, "life 14 insurance contract" and "retirement plan" have the meanings given in AS 13.33.101(g), added 15 by sec. 4 of this Act.