GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 199

Short Title:  Lock Box/Access by Spouse.	(Public)
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Sponsors: Representatives Mercer; Albertson, Bowman, and Colton.
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Referred to:  Judiciary I.
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March 4, 1991

A BILL TO BE ENTITLED
AN ACT TO ELIMINATE LOCK BOX INVENTORY REQUIREMENT WHERE THE PERSON ENTITLED TO ACCESS TO THE LOCK BOX IS THE SURVIVING SPOUSE.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-24(b) reads as rewritten:
"(b)	A person who provides lock boxes to others for safekeeping personal property may open the lock box to which a deceased individual had access only as provided by this section.  The custodian of the lock box shall, upon request, allow the surviving spouse of the decedent access to the lock box if the surviving spouse is the cotenant of the lock box or is the executor, administrator, or personal representative of the decedent's estate.  The custodian of the lock box may allow access to the lock box to any other cotenant of the lock box or any other executor, administrator, or personal representative of the decedent's estate only in the presence of the clerk of the superior court of the county in which the lock box is located.  The clerk or the clerk's representative shall, in the presence of the custodian of the lock box make an inventory of the contents of the lock box and shall furnish a copy of the inventory to the Secretary of Revenue, to the executor, administrator, personal representative, or cotenant of the decedent, and a copy to the custodian of the lock box, except that for lock boxes to which decedent merely had access the inventory shall include only assets in which the decedent has or had an interest. Immediately after the clerk of superior court has made an inventory of the contents of the lock box, the custodian of the lock box shall, upon request, release to the lessee or cotenant of the lock box any life insurance policy stored in the lock box for delivery to the beneficiary named in the policy.  Notwithstanding any of the provisions of this section any life insurance company may pay the proceeds of any policy upon the life of a decedent to the person entitled thereto as soon as it shall have mailed to the Secretary of Revenue a notice, in such form as the Secretary of Revenue may prescribe, setting forth the fact of such payment; but if such notice be not mailed, all of the provisions of this section shall apply.
Notwithstanding any of the provisions of this section, in any case where a bank deposit has been heretofore made or is hereafter made, or where savings and loan stock has heretofore been issued or is hereafter issued, in the names of two or more persons and payable to either or the survivor or survivors of them, such bank or savings and loan association may, upon the death of either of such persons, allow the person or persons entitled thereto to withdraw as much as fifty percent (50%) of such deposit or stock, and the balance thereof shall be retained by the bank or savings and loan association to cover any taxes that may thereafter be assessed under this Article.  When it is ascertained that there is no liability of such deposit or stock for taxes under this Article, the Secretary of Revenue shall furnish the bank or savings and loan association his written consent for the payment of the retained percentage to the person or persons entitled thereto by law; and the Secretary of Revenue may furnish such written consent to the bank or savings and loan association upon the qualification of a personal representative of the deceased.  If the person entitled to funds in an account is the surviving spouse and the account is a joint account of the surviving spouse and the decedent with right of survivorship, no tax waiver is required from the Secretary of Revenue to release the funds in the account.
Failure to comply with the provisions of this section shall render such safe deposit company, trust company, corporation, bank or other institution, person or persons liable for the amount of the taxes and interest due under this Article on property transferred by the decedent.  In any action brought under this provision it shall be a sufficient defense that the delivery or transfer of securities, deposits, assets, or property was made in good faith without knowledge of the death of the decedent and without knowledge of circumstances sufficient to place the defendant on inquiry."
Sec. 2.  This act is effective upon ratification.