Rights of Creditor on Registration

(a)A security registered in beneficiary form is not effective against an estate of a deceased party to transfer to a survivor sums that are otherwise needed to pay debts, taxes and expenses of administration, COL10312014 CH. 8 SUCCESSION & SECURITIES TRANSFER including statutory allowances to the surviving spouse and minor children, if other assets of the estate are insufficient.

(b)A party, POD or TOD payee, or beneficiary who receives a payment from or transfer of a security registered in beneficiary form after the death of a deceased party is liable to account to the deceased party's personal representative for amounts the decedent owned beneficially immediately before the decedent's death to the extent necessary to discharge the claims and charges described by Subsection

(a)of this Section remaining unpaid after application of the decedent's estate, but is not liable in an amount greater than the amount that the party, POD or TOD payee, or beneficiary received from the security.

(c)A proceeding to assert the liability provided by Subsection

(b)of this Section may not be commenced, unless the personal representative has received a written demand by a surviving spouse, a creditor, or one acting for a minor child of the decedent, and a proceeding may not be commenced later than two

(2)years after the date of the death of the decedent. Sums recovered by the personal representative under this Section shall be administered as part of the decedent's estate.

(d)This Section does not affect the right of a financial institution, a securities issuer, or a securities broker to make a payment from or transfer of a security registered in beneficiary form according to the terms of the security, or impose liability on the institution, issuer or broker to the estate of a deceased party, unless before the payment or transfer the institution, issuer or broker received written notice from the personal representative stating the sums needed to pay debts, taxes and expenses of administration.