PROBATE CODE
SECTION 5000-5003




5000.  (a) A provision for a nonprobate transfer on death in an
insurance policy, contract of employment, bond, mortgage, promissory
note, certificated or uncertificated security, account agreement,
custodial agreement, deposit agreement, compensation plan, pension
plan, individual retirement plan, employee benefit plan, trust,
conveyance, deed of gift, marital property agreement, or other
written instrument of a similar nature is not invalid because the
instrument does not comply with the requirements for execution of a
will, and this code does not invalidate the instrument.
   (b) Included within subdivision (a) are the following:
   (1) A written provision that money or other benefits due to,
controlled by, or owned by a decedent before death shall be paid
after the decedent's death to a person whom the decedent designates
either in the instrument or in a separate writing, including a will,
executed either before or at the same time as the instrument, or
later.
   (2) A written provision that money due or to become due under the
instrument shall cease to be payable in event of the death of the
promisee or the promisor before payment or demand.
   (3) A written provision that any property controlled by or owned
by the decedent before death that is the subject of the instrument
shall pass to a person whom the decedent designates either in the
instrument or in a separate writing, including a will, executed
either before or at the same time as the instrument, or later.
   (c) Nothing in this section limits the rights of creditors under
any other law.


5002.  Notwithstanding any other provision of this part, a holder of
property under an instrument of a type described in Section 5000 is
not required to receive, hold, or transfer the property in compliance
with a provision for a nonprobate transfer on death executed by a
person who has an interest in the property if either (1) the person
is not authorized by the terms of the instrument to execute a
provision for transfer of the property, or (2) the provision for
transfer of the property does not otherwise satisfy the terms of the
instrument.


5003.  (a) A holder of property under an instrument of a type
described in Section 5000 may transfer the property in compliance
with a provision for a nonprobate transfer on death that satisfies
the terms of the instrument, whether or not the transfer is
consistent with the beneficial ownership of the property as between
the person who executed the provision for transfer of the property
and other persons having an interest in the property or their
successors, and whether or not the transfer is consistent with the
rights of the person named as beneficiary.
   (b) Except as provided in this subdivision, no notice or other
information shown to have been available to the holder of the
property affects the right of the holder to the protection provided
by subdivision (a). The protection provided by subdivision (a) does
not extend to a transfer made after either of the following events:
   (1) The holder of the property has been served with a contrary
court order.
   (2) The holder of the property has been served with a written
notice of a person claiming an adverse interest in the property.
However, this paragraph does not apply to a pension plan to the
extent the transfer is a periodic payment pursuant to the plan.
   (c) The protection provided by this section does not affect the
rights of the person who executed the provision for transfer of the
property and other persons having an interest in the property or
their successors in disputes among themselves concerning the
beneficial ownership of the property.
   (d) The protection provided by this section is not exclusive of
any protection provided the holder of the property by any other
provision of law.
   (e) A person shall not serve notice under paragraph (2) of
subdivision (b) in bad faith. If the court in an action or proceeding
relating to the rights of the parties determines that a person has
served notice under paragraph (2) of subdivision (b) in bad faith,
the court shall award against the person the cost of the action or
proceeding, including a reasonable attorney's fee, and the damages
caused by the service.