[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR363.44]

[Page 489-491]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 363_REGULATIONS GOVERNING SECURITIES HELD IN TREASURYDIRECT--Table 
of Contents
 
Subpart B_General Provisions Governing Securities Held in TreasuryDirect
 
Sec.  363.44  What happens when a TreasuryDirect[supreg] account owner 
dies and the estate is entitled to securities held in the account?

    (a) Estate is being administered. (1) For an estate that is being 
administered, the legal representative of the estate may request payment 
of securities, if the securities are eligible for payment, to the estate 
or to the persons entitled, or may:

[[Page 490]]

    (i) Request transfer of securities to the TreasuryDirect account of 
the persons entitled, if the securities are eligible for transfer;
    (ii) Request transfer of marketable Treasury securities to the 
commercial book-entry system; or
    (iii) Request a Sell Direct transaction.
    (2) We will require appropriate proof of appointment for the legal 
representative of the estate. Letters of appointment must be dated not 
more than one year prior to the date of submission of the letters of 
appointment.
    (3) The legal representative of the estate may not purchase 
securities on behalf of the estate.
    (4) If payment is requested, we will require ACH instructions to 
process the request.
    (b) Estate has been settled previously. If the estate has been 
settled previously through judicial proceedings, the persons entitled 
may request payment of securities, if the securities are eligible for 
redemption, or may transfer the securities to the TreasuryDirect 
accounts of the persons entitled, if the securities are eligible for 
transfer. We will require a certified copy of the court-approved final 
accounting for the estate, the court's decree of distribution, or other 
appropriate evidence. If payment is requested, we will require ACH 
instructions to process the request.
    (c) Special provisions under the law of the jurisdiction of the 
decedent's domicile. If there is no formal or regular administration and 
no representative of the estate is to be appointed, the person appointed 
to receive or distribute the assets of a decedent's estate without 
regular administration under summary or small estates procedures under 
applicable local law may request payment of securities, if the 
securities are eligible for redemption, or may transfer the securities 
to or on behalf of the persons entitled by the law of the jurisdiction 
in which the decedent was domiciled at the date of death, if the 
securities are eligible for transfer. We will require appropriate 
evidence. If payment is requested, we will require ACH instructions to 
process the request.
    (d) When administration is required. If the total redemption value 
of the Treasury securities and undelivered payments, if any, held 
directly on our records that are the property of the decedent's estate 
is greater than $100,000, administration of the decedent's estate will 
be required. The redemption value of savings bonds and the principal 
amount of marketable securities will be used to determine the value of 
securities, and will be determined as of the date of death. 
Administration may also be required at the discretion of the Department 
for any case.
    (e) Voluntary representative for small estates that are not being 
otherwise administered--(1) General. A voluntary representative is a 
person qualified according to paragraph (e)(3) of this section, to 
redeem or transfer a decedent's securities. The voluntary representative 
procedures are for the convenience of the Department; entitlement to the 
decedent's securities and held payments, if any, is determined by the 
law of the jurisdiction in which the decedent was domiciled at the date 
of death. Voluntary representative procedures may be used only if:
    (i) There has been no administration, no administration is 
contemplated, and no summary or small estate procedures under applicable 
local law have been used;
    (ii) The total redemption value of the Treasury securities and held 
payments, if any, held directly on our records that are the property of 
the decedent's estate is $100,000 or less, as of the date of death, and
    (iii) There is a person eligible to serve as the voluntary 
representative according to paragraph (e)(3) of this section.
    (2) Authority of voluntary representative. A voluntary 
representative may:
    (i) Redeem the decedent's savings bonds that are eligible for 
redemption. Payment may be made to the voluntary representative on 
behalf of or directly to the persons entitled by the law of the 
jurisdiction in which the decedent was domiciled at the date of death;
    (ii) Transfer the decedent's securities to the persons entitled by 
the law of the jurisdiction in which the decedent was domiciled at the 
date of death.
    (3) Order of precedence for voluntary representative. An individual 
eighteen

[[Page 491]]

years of age or older may act as a voluntary representative according to 
the following order of precedence: a surviving spouse; if there is no 
surviving spouse, then a child of the decedent; if there are none of the 
above, then a descendant of a deceased child of the decedent; if there 
are none of the above, then a parent of the decedent; if there are none 
of the above, then a brother or sister of the decedent; if there are 
none of the above, then a descendant of a deceased brother or sister of 
the decedent; if there are none of the above, then a next of kin of the 
decedent, as determined by the laws of the decedent's domicile at the 
date of death. As used in this order of precedence, child means a 
natural or adopted child of the decedent.
    (4) Liability. By serving, the voluntary representative warrants 
that the distribution of payments or securities are to or on behalf of 
the persons entitled by the law of the jurisdiction in which the 
decedent was domiciled at the date of death. The United States is not 
liable to any person for the improper distribution of payments or 
securities. Upon payment or transfer of the securities to the voluntary 
representative, the United States is released to the same extent as if 
it had paid or delivered to a representative of the estate appointed 
pursuant to the law of the jurisdiction in which the decedent was 
domiciled at the date of death. The voluntary representative shall 
indemnify and hold harmless the United States and all creditors and 
persons entitled to the estate of the decedent. The amount of the 
indemnification is limited to an amount no greater than the value 
received by the voluntary representative.
    (5) Creditor. If there has been no administration, no administration 
is contemplated, no summary or small estate procedures under applicable 
local law have been used, and there is no person eligible to serve as a 
voluntary representative pursuant to paragraph (e) of this section, then 
a creditor may make a claim for payment of the amount of the debt, 
providing the debt has not been barred by applicable local law.

[70 FR 57435, Sept. 30, 2005, as amended at 70 FR 57443, Sept. 30, 2005]