30.1-05-08. (2-214) Protection of payers and other third parties

30.1-05-08. (2-214) Protection of payers and other third parties

1. Although under section 30.1-05-02 a payment, item of property, or other benefit is

included in the decedent's nonprobate transfers to others, a payer or other third party

is not liable for having made a payment or transferred an item of property or other

benefit to a beneficiary designated in a governing instrument, or for having taken any

other action in reliance on the validity of a governing instrument, upon request and

satisfactory proof of the decedent's death, before the payer or other third party

received written notice from the surviving spouse or spouse's representative of an

intention to file a petition for the elective share or that a petition for the elective share

has been filed. A payer or other third party is liable only for actions taken two or more

business days after the payer or other third party received written notice of an intention

to file a petition for the elective share or that a petition for the elective share has been

filed. The written notice must indicate the name of the decedent, the date of the

decedent's death, the name of the person asserting an interest, the nature of the

payment or item of property or other benefit, and a statement that the spouse intends

to file a petition for the elective share or that a petition for the elective share has been

filed. Any form of service of notice other than that described in subsection 2 is not

sufficient to impose liability on a payer or other third party for actions taken pursuant to

the governing instrument.

2. The written notice must be mailed to the payer's or other third party's main office or

home by registered mail or served upon the payer or third party in the same manner

as a summons in a civil action. Notice to a sales representative of the payer or other

third party does not constitute notice to the payer or other third party. Upon receipt of

written notice of intention to file a petition for the elective share or that a petition for the

elective share has been filed, a payer 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 county of the decedent's

residence. The availability of an action under this section does not prevent the payer or

other third party from taking any other action authorized by law or the governing

instrument. If no probate proceedings have been commenced, the payer or other third

party shall file with the court a copy of the written notice received by the payer or other

third party, with the payment of funds or transfer or deposit of property. The court may

not charge a filing fee to the payer or other third party for any such payment, transfer,

or deposit with the court, even if no probate proceedings have been commenced

before the payment, transfer, or deposit. The court shall hold the funds or items of

property and, upon its determination under subsection 4 of section 30.1-05-05, shall

order disbursement in accordance with the determination. If no petition is filed in the

court within the specified time under subsection 1 of section 30.1-05-05, or, if filed, the

demand for an elective share is withdrawn under subsection 3 of section 30.1-05-05,

the court shall order disbursement to the designated beneficiary. A filing fee, if any,

may be charged upon disbursement either to the recipient or against the funds or

property on deposit with the court, in the discretion of the court. Payments, transfers,

or deposits made to or with the court discharge the payer or other third party from all

claims under the governing instrument or applicable law for the value of amounts paid

to the designated beneficiary. A filing fee, if any,

may be charged upon disbursement either to the recipient or against the funds or

property on deposit with the court, in the discretion of the court. Payments, transfers,

or deposits made to or with the court discharge the payer or other third party from all

claims under the governing instrument or applicable law for the value of amounts paid

to or items of property transferred to or deposited with the court.

3. Upon petition to the court by the beneficiary designated in a governing instrument, the

court may order that all or part of the property be paid to the beneficiary in an amount

and subject to conditions consistent with this section.