17-2263.   Contracts for payment of shareholders'accounts to beneficiariesupon shareholders' deaths; rights of shareholder during lifetime; changeof beneficiary.Subject to the provisions of this section and K.S.A. 17-2264 and amendmentsthereto, an individual adult or minor, hereafter referred to as theshareholder, may enter into a written contract with any credit unionlocated in this state providing that the balance of theshareholder's account,or the balance of the shareholder's legal share of an account,at the time of death of the shareholder shall be made payable on thedeath of the shareholder to one or more persons or, ifthe persons predecease the owner, to another person or persons, hereafterreferred to as the beneficiary or beneficiaries. If any beneficiary isa minor at the time the account, or any portionof the account, becomespayable to the beneficiary and the balance, or portion of the balance, exceedsthe amount specified by K.S.A. 59-3053, and amendmentsthereto, the moneys shall be payable only to aconservator of the minor beneficiary.

      Transfers pursuant to this section shall not beconsidered testamentary or be invalidated due to nonconformity with theprovisions ofchapter 59 of the Kansas Statutes Annotated.

      Every contract authorized by this section shall be considered tocontain a right on the part of the shareholder during the shareholder'slifetime both to withdraw funds on deposit in the account in the mannerprovided in the contract, in whole or in part, as though no beneficiaryhas been named, and to change the designation of beneficiary. Theinterest of the beneficiary shall be considered not to vestuntil the deathof the shareholder and, if there is a claim pursuant to subsection (g) ofK.S.A. 39-709 and amendments thereto, until such claim is satisfied.

      No change in the designation of the beneficiary shall be valid unlessexecuted in the form and manner prescribed by the credit union anddelivered to the credit union prior to the death of the shareholder.

      For the purposes of this section, the balance of the shareholder's accountor the balance of the shareholder's legal share of an account shall notbe construed to include any portion of the account which under the law ofjoint tenancy is the property of another joint tenant of the account uponthe death of the owner.

      As used in this section, "person" means any individual, individual orcorporatefiduciary or nonprofit religious or charitable organization as defined byK.S.A. 79-4701 and amendments thereto.

      History:   L. 1979, ch. 177, § 5;L. 1980, ch. 166, § 3;L. 1982, ch. 104, § 2;L. 1984, ch. 51, § 3;L. 1992, ch. 150, § 3;L. 2002, ch. 114, § 49; July 1.