§560:2-702  Requirement of survival
by one hundred twenty  hours.  (a)  Requirement of survival by one hundred
twenty hours under probate code.  For the purposes of this chapter, except as
provided in subsection (d), an individual who is not established by clear and
convincing evidence to have survived an event, including the death of another
individual, by one hundred twenty hours is deemed to have predeceased the
event.



(b)  Requirement of survival by one hundred
twenty hours under governing instrument.  Except as provided in subsection (d),
for purposes of a provision of a governing instrument that relates to an
individual surviving an event, including the death of another individual, an
individual who is not established by clear and convincing evidence to have
survived the event by one hundred twenty hours is deemed to have predeceased
the event.



(c)  Co-owners with right of survivorship;
requirement of survival by one hundred twenty hours.  Except as provided in
subsection (d), if:



(1)  It is not established by clear and convincing
evidence that one of two co-owners with right of survivorship survived the
other co-owner by one hundred twenty hours, one-half of the property passes as
if one had survived by one hundred twenty hours and one-half as if the other
had survived by one hundred twenty hours; and



(2)  There are more than two co-owners and it is not
established by clear and convincing evidence that at least one of them survived
the others by one hundred twenty hours, the property passes in the proportion
that one bears to the whole number of co-owners.



For the purposes of this subsection,
"co-owners with right of survivorship" includes joint tenants,
tenants by the entireties, and other co-owners of property or accounts held
under circumstances that entitles one or more to the whole of the property or
account on the death of the other or others.



(d)  Exceptions.  Survival by one hundred
twenty hours is not required if:



(1)  The governing instrument contains language
dealing explicitly with simultaneous deaths or deaths in a common disaster and
that language is operable under the facts of the case;



(2)  The governing instrument expressly indicates that
an individual is not required to survive an event, including the death of
another individual, by any specified period or expressly requires the
individual to survive the event by a specified period; but survival must be
established by clear and convincing evidence;



(3)  The imposition of a one hundred twenty-hour
requirement of survival would cause a nonvested property interest or a power of
appointment to fail to qualify for validity under section 560:2-901(a)(1),
(b)(1), or (c)(1) or to become invalid under section 525-1(a)(2), (b)(2), or
(c)(2); but survival must be established by clear and convincing evidence; or



(4)  The application of a one hundred twenty-hour
requirement of survival to multiple governing instruments would result in an
unintended failure or duplication of a disposition; but survival must be
established by clear and convincing evidence.



(e)  Protection of payors and other third
parties.



(1)  A payor or other third party is not liable for
having made a payment or transferred an item of property or any other benefit
to a beneficiary designated in a governing instrument who, under this section,
is not entitled to the payment or item of property, or for having taken any
other action in good faith reliance on the beneficiary's apparent entitlement
under the terms of the governing instrument, before the payor or other third
party received written notice of a claimed lack of entitlement under this
section.  A payor or other third party is liable for a payment made or other
action taken after the payor or other third party received written notice of a
claimed lack of entitlement under this section;



(2)  Written notice of a claimed lack of entitlement
under paragraph (1) must be mailed to the payor's or other third party's main
office or home by registered or certified mail, return receipt requested, or
served upon the payor or other third party in the same manner as a summons in a
civil action.  Upon receipt of written notice of a claimed lack of entitlement
under this section, a payor or other third party may pay any amount owed or
transfer or deposit any item of property held by it to or with the court having
jurisdiction of the probate proceedings relating to the decedent's estate, or
if no proceedings have been commenced, to or with the court having jurisdiction
of probate proceedings relating to decedents' estates located in the judicial circuit
of the decedent's residence.  The court shall hold the funds or item of
property and, upon its determination under this section, shall order
disbursement in accordance with the determination.  Payments, transfers, or
deposits made to or with the court discharge the payor or other third party
from all claims for the value of amounts paid to or items of property
transferred to or deposited with the court.



(f)  Protection of bona fide purchasers;
personal liability of recipient.



(1)  A person who purchases property for value and
without notice, or who receives a payment or other item of property in partial
or full satisfaction of a legally enforceable obligation, is neither obligated
under this section to return the payment, item of property, or benefit nor is
liable under this section for the amount of the payment or the value of the
item of property or benefit.  But a person who, not for value, receives a
payment, item of property, or any other benefit to which the person is not
entitled under this section is obligated to return the payment, item of
property, or benefit, or is personally liable for the amount of the payment or
the value of the item of property or benefit, to the person who is entitled to
it under this section; and



(2)  If this section or any part of this section is
preempted by federal law with respect to a payment, an item of property, or any
other benefit covered by this section, a person who, not for value, receives
the payment, item of property, or any other benefit to which the person is not
entitled under this section is obligated to return the payment, item of
property, or benefit, or is personally liable for the amount of the payment or
the value of the item of property or benefit, to the person who would have been
entitled to it were this section or part of this section not preempted. [L
1996, c 288, pt of §1; am L 1997, c 244, §2]



 



Note



 



  Reference to §560:2-901 in subsection (d)(3) is to a reserved
section number under part 9, statutory rule against perpetuities; honorary
trusts.  Current provision on rule against perpetuities is chapter 525.