§ 54B-130. Payable on Death (POD) accounts. - North Carolina Statutes

§ 54B‑130.  Payable onDeath (POD) accounts.

(a)        If any person orpersons establishing a withdrawable account shall execute a written agreementwith the association containing a statement that it is executed pursuant to theprovisions of this section and providing for the account to be held in the nameof the person or persons as owner or owners for one or more persons designatedas beneficiaries, the account and any balance thereof shall be held as aPayable on Death account with the following incidents:

(1)        Any owner during theowner's lifetime may change any designated beneficiary by a written directionto the association.

(1a)      If there are two ormore owners of a Payable on Death account, the owners shall own the account asjoint tenants with right of survivorship and, except as otherwise provided inthis section, the account shall have the incidents set forth in G.S. 54B‑129.

(2)        Any owner maywithdraw funds by writing checks or otherwise, as set forth in the accountcontract, and receive payment in cash or check payable to the owner's personalorder.

(3)        If only onebeneficiary is living and of legal age at the death of the last survivingowner, the beneficiary shall be the holder of the account, and payment by theassociation to the holder shall be a total discharge of the association'sobligation as to the amount paid. If two or more beneficiaries are living atthe death of the last surviving owner, they shall be owners of the account asjoint tenants with right of survivorship as provided in G.S. 54B‑129, andpayment by the association to the owners or to any of the owners shall be atotal discharge of the association's obligation as to the amount paid.

(4)        If one or moreowners survive the last surviving beneficiary, the account shall become anindividual account of the owner, or a joint account with right of survivorshipof the owners, and shall have the legal incidents of an individual account in the case  of a single owner or a joint account  with right of survivorship, asprovided in G.S. 54B‑129, in the case of multiple owners.

(5)        If only onebeneficiary is living and that beneficiary is not of legal age at the death ofthe last surviving owner, the association shall transfer the funds in theaccount to the general guardian or guardian of the estate, if any, of the minorbeneficiary. If no guardian of the minor beneficiary has been appointed, theassociation shall hold the funds in a similar interest bearing account in thename of the minor until the minor reaches the age of majority or until a dulyappointed guardian withdraws the funds.

(6)        Prior to the deathof the last surviving owner, no beneficiary shall have any ownership interestin a Payable on Death account. Funds in a Payable on Death account establishedpursuant to this subsection shall belong to the beneficiary or beneficiariesupon the death of the last surviving owner and the funds shall be subject onlyto the personal representative's right of collection as set forth in G.S. 28A‑15‑10(a)(1).Payment by the association of funds in the Payable on Death account to thebeneficiary or beneficiaries shall terminate the personal representative'sauthority under G.S. 28A‑15‑10(a)(1) to collect against theassociation for the funds so paid, but the personal representative's authorityto collect such funds from the beneficiary or beneficiaries is not terminated.

Theperson or persons establishing an account under this subsection shall sign astatement containing language set forth in a conspicuous manner andsubstantially  similar  to the following:

SAVINGS AND LOAN (or name of institution)

PAYABLE ON DEATH ACCOUNT

G.S. 54B‑130(A)

I (or we) understand that byestablishing a Payable on Death account under the provisions of North CarolinaGeneral Statute 54B‑130(a) that:

1.         During my (or our)lifetime I (or we), individually or jointly, may withdraw the money in theaccount; and

2.         By written directionto the savings and loan association (or name of institution) I (or we),individually or jointly, may change the beneficiary; and

3.         Upon my (or our)death the money remaining in the account will belong to the beneficiaries, andthe money will not be inherited by my (or our) heirs or be controlled by will.

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(a1)      This section shallnot be deemed exclusive. Deposit accounts not conforming to this section shallbe governed by other applicable provisions of the General Statutes or thecommon law, as appropriate.

(b)        Repealed by SessionLaws 2001‑267, s. 3.

(c)        No addition to suchaccounts, nor any withdrawal, payment, or change of beneficiary shall affectthe nature of such accounts as Payable on Death accounts, or affect the rightof any owner to terminate the account.

(d)        This section doesnot repeal or modify any provisions of laws relating to estate taxes. (1981, c. 282, s. 3; 1987(Reg. Sess., 1988), c. 1078, s. 6; 1989, c. 164, s. 4; 1989 (Reg. Sess., 1990),c. 866, s. 2; 1998‑69, s. 17; 2001‑267, s. 3.)