Section 475.275

Title XXXI TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY

Chapter 475

Effective - 28 Aug 2023, 2 histories   

  475.275.  Verification of securities held by conservator — pooled accounts, defined, restrictions on — examination of pooled accounts, when. — 1.  The conservator, at the time of filing any settlement with the court, shall exhibit all securities or investments held by him to an officer of the bank or other depositary wherein the securities or investments are held for safekeeping or to an authorized representative of the corporation which is surety on his bond, or to the judge or clerk of a court of record in this state, or upon request of the conservator or other interested party, to any other reputable person designated by the court, who shall certify in writing that he has examined the securities or investments and identified them with those described in the account and shall note any omission or discrepancies.  If the depositary is the conservator, the certifying officer shall not be the officer verifying the account.  The conservator may exhibit the securities or investments to the judge of the court, who shall endorse on the account and copy thereof, a certificate that the securities or investments shown therein as held by the conservator were each in fact exhibited to him and that those exhibited to him were the same as those in the account and noting any omission or discrepancy.  The certificate, and the certificate of an official of the bank in which are deposited any funds for which the conservator is accountable, showing the amount on deposit, shall be prepared and signed in duplicate and one of each shall be filed by the conservator with his account.

  2.  (1)  As used in and pursuant to this section, a "pooled account" is an account within the meaning of this section and means any account maintained by a fiduciary for more than one principal and is established for the purpose of managing and investing and to manage and invest the funds of such principals.  No fiduciary shall or may place funds into a pooled account unless the account meets the following criteria:

  (a)  The pooled account is maintained at a bank or savings and loan institution;

  (b)  The pooled account is titled in such a way as to reflect that the account is being held by a fiduciary in a custodial capacity;

  (c)  The fiduciary maintains, or causes to be maintained, records containing information as to the name and ownership interest of each principal in the pooled account;

  (d)  The fiduciary's records contain a statement of all accretions and disbursements; and

  (e)  The fiduciary's records are maintained in the ordinary course of business and in good faith.

  (2)  The public administrator of any county serving as a conservator or personal representative and using and utilizing pooled accounts for the investing and management of estate funds shall have any such accounts examined on at least an annual basis by an independent certified public accountant.  The examination shall:

  (a)  Compare the pooled account's year-end bank statement and obtain the reconciliation of the pooled account from the bank statement to the fiduciary's general ledger balance on the same day;

  (b)  Reconcile the total of individual accounts in the fiduciary's records to the reconciled pooled account's balance and note any difference;

  (c)  Confirm if collateral is pledged to secure amounts on deposit in the pooled account in excess of Federal Deposit Insurance Corporation coverage; and

  (d)  Confirm the account balance with the financial institution.

  (3)  A public administrator using and utilizing pooled accounts as provided by this section shall certify by affidavit that he or she has met the conditions for establishing a pooled account as set forth in subdivision (2) of this subsection.

  (4)  The county shall provide for the expense of the report.  If and where the public administrator has provided the judge with the report pursuant to and required by this subsection and section, the public administrator shall not be required to obtain the written verification of an officer of a bank or other depository on any estate asset maintained within the pooled account as otherwise required in and under subsection 1 of this section.

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(L. 1955 p. 385 § 336, A.L. 1983 S.B. 44 & 45, A.L. 2004 H.B. 795, et al. merged with S.B. 1243, A.L. 2023 S.B. 103)