CHAPTER 11. MULTIPLE PARTY ACCOUNTS
IC 32-17-11
Chapter 11. Multiple Party Accounts
IC 32-17-11-1
"Account" defined
Sec. 1. (a) As used in this chapter, "account" means a contract ofdeposit of funds between a depositor and a financial institution.
(b) The term includes a checking account, savings account,certificate of deposit, share account, and other like arrangement.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-2
"Beneficiary"defined
Sec. 2. As used in this chapter, "beneficiary" means a personnamed in a trust account as one for whom a party to the account isnamed as trustee.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-3
"Financial institution" defined
Sec. 3. (a) As used in this chapter, "financial institution" meansany organization authorized to do business in Indiana under IC 28 orfederal law relating to financial institutions.
(b) The term includes the following:
(1) Banks and trust companies.
(2) Building and loan associations.
(3) Industrial loan and investment companies.
(4) Savings banks.
(5) Credit unions.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-4
"Joint account" defined
Sec. 4. As used in this chapter, "joint account" means an accountpayable on request to one (1) or more of two (2) or more partieswhether or not mention is made of any right of survivorship.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-5
"Multiple party account" defined
Sec. 5. (a) As used in this chapter, "multiple party account" meansany of the following types of accounts:
(1) A joint account.
(2) A trust account.
(b) The term does not include accounts established for deposit offunds of a partnership, joint venture, or other association for businesspurposes, or accounts controlled by one (1) or more persons as theduly authorized agent or trustee for a corporation, unincorporatedassociation, charitable or civic organization, or a regular fiduciary ortrust account where the relationship is established other than by
deposit agreement.
As added by P.L.2-2002, SEC.2. Amended by P.L.143-2009, SEC.33.
IC 32-17-11-6
"Net contribution" defined
Sec. 6. As used in this chapter, "net contribution" of a party to ajoint account as of any given time means the sum of:
(1) all deposits made by or for the party; minus
(2) all withdrawals made by or for the party that have not beenpaid to or applied to the use of any other party; plus
(3) a pro rata share of any interest or dividends included in thecurrent balance.
The term includes any proceeds of deposit life insurance added to theaccount by reason of the death of the party whose net contribution isin question.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-7
"Party" defined
Sec. 7. (a) As used in this chapter, "party" means a person who,by the terms of the account, has a present right, subject to request, topayment from a multiple party account. A beneficiary of a trustaccount is a party only after the account becomes payable to thepayee or beneficiary by reason of the payee's or beneficiary'ssurviving the original payee or trustee.
(b) Unless the context otherwise requires, the term includes aguardian, conservator, personal representative, or assignee, includingan attaching creditor, of a party. The term also includes a personidentified as a trustee of an account for another whether or not abeneficiary is named.
(c) The term does not include:
(1) any named beneficiary unless the beneficiary has a presentright of withdrawal; or
(2) a person who is merely authorized to make a request as theagent of another.
As added by P.L.2-2002, SEC.2. Amended by P.L.143-2009, SEC.34.
IC 32-17-11-8
"Payment" defined
Sec. 8. As used in this chapter, "payment" of sums on depositincludes the following:
(1) Withdrawal.
(2) Payment on check or other directive of a party.
(3) Any pledge of sums on deposit by a party.
(4) Any set-off, reduction, or other disposition of all or part ofany account pursuant to a pledge.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-9
"Proof of death" defined Sec. 9. As used in this chapter, "proof of death" includes a deathcertificate, an affidavit of death, or a record or report that is primafacie proof of death under IC 29-2-6, IC 29-2-7 (before its repeal), orIC 29-2-14.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-10
Repealed
(Repealed by P.L.143-2009, SEC.52.)
IC 32-17-11-11
Repealed
(Repealed by P.L.143-2009, SEC.52.)
IC 32-17-11-12
"Request" defined
Sec. 12. As used in this chapter, "request" means:
(1) a proper request for withdrawal; or
(2) a check or order for payment;
that complies with all conditions of the account, including specialrequirements concerning necessary signatures and regulations of thefinancial institution. If the financial institution conditions withdrawalor payment on advance notice, for purposes of this section, therequest for withdrawal or payment is treated as immediately effectiveand a notice of intent to withdraw is treated as a request forwithdrawal.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-13
"Sums on deposit" defined
Sec. 13. As used in this chapter, "sums on deposit" means thebalance payable on a multiple party account, including interest,dividends, and any deposit life insurance proceeds added to theaccount by reason of the death of a party.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-14
"Trust account" defined
Sec. 14. (a) As used in this chapter, "trust account" means anaccount in the name of at least one (1) party as trustee for at least one(1) beneficiary if:
(1) the relationship is established by the form of the accountand the deposit agreement with the financial institution; and
(2) there is no subject of the trust other than the sums on depositin the account.
It is not essential that payment to the beneficiary be mentioned in thedeposit agreement.
(b) The term does not include the following:
(1) A regular trust account under a testamentary trust.
(2) A trust agreement that has significance apart from the
account.
(3) A fiduciary account arising from a fiduciary relation such asattorney-client.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-15
"Withdrawal" defined
Sec. 15. As used in this chapter, "withdrawal" includes paymentto a third person pursuant to a check or other directive of a party.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-16
Application of certain sections
Sec. 16. (a) The provisions of sections 17, 18, and 19 of thischapter concerning beneficial ownership as between parties, or asbetween parties and beneficiaries of multiple party accounts:
(1) apply only to controversies between:
(A) the parties or the beneficiaries of multiple partyaccounts; and
(B) creditors and other successors of:
(i) the parties; or
(ii) the beneficiaries of multiple party accounts; and
(2) do not affect the power of withdrawal of the parties or thebeneficiaries of multiple party accounts as determined by theterms of account contracts.
(b) The provisions of sections 22 through 27 of this chaptergovern the liability and set-off rights of financial institutions thatmake payments under sections 22 through 27 of this chapter.
As added by P.L.2-2002, SEC.2. Amended by P.L.143-2009, SEC.35.
IC 32-17-11-17
Ownership of accounts
Sec. 17. (a) Unless there is clear and convincing evidence of adifferent intent, during the lifetime of all parties, a joint accountbelongs to the parties in proportion to the net contributions by eachparty to the sums on deposit.
(b) Unless:
(1) a contrary intent is manifested by the terms of the accountor the deposit agreement; or
(2) there is other clear and convincing evidence of anirrevocable trust;
a trust account belongs beneficially to the trustee during the trustee'slifetime. If at least two (2) parties are named as trustee on theaccount, subsection (a) governs the beneficial rights of the trusteesduring their lifetimes. If there is an irrevocable trust, the accountbelongs beneficially to the beneficiary.
As added by P.L.2-2002, SEC.2. Amended by P.L.143-2009, SEC.36.
IC 32-17-11-18
Ownership of accounts at death of party, original payee, or trustee Sec. 18. (a) Sums remaining on deposit at the death of a party toa joint account belong to the surviving party or parties as against theestate of the decedent unless there is clear and convincing evidenceof a different intention at the time the account is created. If there areat least two (2) surviving parties, their respective ownerships duringlifetime are:
(1) in proportion to their previous ownership interests undersection 17 of this chapter; and
(2) augmented by an equal share for each survivor of anyinterest the decedent may have owned in the accountimmediately before the person's death.
The right of survivorship continues between the surviving parties.
(b) If the account is a trust account, on death of the trustee or thesurvivor of at least two (2) trustees, any sums remaining on depositbelong to the person or persons named as beneficiaries who survivethe trustee, unless there is clear and convincing evidence of acontrary intent. If at least two (2) beneficiaries survive, there is noright of survivorship between the beneficiaries unless the terms ofthe account or deposit agreement expressly provide for survivorship.
(c) Except as provided in subsections (a) and (b), the death of anyparty to a multiple party account has no effect on beneficialownership of the account other than to transfer the rights of thedecedent as part of the decedent's estate.
(d) A right of survivorship arising:
(1) from the express terms of the account; or
(2) under:
(A) this section; or
(B) a beneficiary designation in a trust account;
cannot be changed by will.
As added by P.L.2-2002, SEC.2. Amended by P.L.143-2009, SEC.37.
IC 32-17-11-19
Rights of survivorship
Sec. 19. (a) The provisions of section 18 of this chapter as torights of survivorship are determined by the form of the account atthe death of a party.
(b) The form of an account may be altered by written order givenby a party to the financial institution to:
(1) change the form of the account; or
(2) stop or vary payment under the terms of the account.
(c) An order or request described in subsection (b) must be:
(1) signed by a party;
(2) received by the financial institution during the party'slifetime; and
(3) not countermanded by another written order of the sameparty during the party's lifetime.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-20
Certain transfers not testamentary Sec. 20. Any transfers resulting from the application of section 18of this chapter are:
(1) effective by reason of:
(A) the account contracts involved; and
(B) this chapter; and
(2) not to be considered as:
(A) testamentary; or
(B) subject to IC 29.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-21
Repealed
(Repealed by P.L.165-2002, SEC.15.)
IC 32-17-11-21.1
Liability for creditor claims and statutory allowances; applicablelaw
Sec. 21.1. The liability of a surviving party or beneficiary forcreditor claims and statutory allowances is determined underIC 32-17-13.
As added by P.L.165-2002, SEC.12. Amended by P.L.143-2009,SEC.38.
IC 32-17-11-22
Payments; multiple party accounts
Sec. 22. (a) Financial institutions may enter into multiple partyaccounts to the same extent that they may enter into single partyaccounts.
(b) Any multiple party account may be paid, on request, to anyone (1) or more of the parties.
(c) For purposes of establishing net contributions, a financialinstitution is not required to inquire as to:
(1) the source of funds received for deposit to a multiple partyaccount; or
(2) the proposed application of any sum withdrawn from anaccount.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-23
Payments; joint accounts
Sec. 23. (a) Except as provided in subsection (b), any sums in ajoint account may be paid, on request, to any party without regard towhether any other party is incapacitated or deceased at the time thepayment is demanded.
(b) Payment may not be made to the personal representative orheirs of a deceased party unless:
(1) proofs of death are presented to the financial institutionshowing that the decedent was the last surviving party; or
(2) there is no right of survivorship under section 18 of thischapter.As added by P.L.2-2002, SEC.2.
IC 32-17-11-24
Repealed
(Repealed by P.L.143-2009, SEC.52.)
IC 32-17-11-25
Payments; trust accounts
Sec. 25. A trust account may be paid, on request:
(1) to any trustee;
(2) unless the financial institution has received written noticethat the beneficiary has a vested interest not dependent upon thebeneficiary surviving the trustee, if proof of death is presentedto the financial institution showing that the decedent was thesurvivor of all other persons named on the account either astrustee or beneficiary, to the personal representative or heirs ofa deceased trustee; and
(3) upon presentation to the financial institution of proof ofdeath showing that the beneficiary or beneficiaries survived allpersons named as trustee, to the beneficiary or beneficiaries.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-26
Payments; discharge of financial institutions from all claims
Sec. 26. (a) Payment made under section 22, 23, or 25 of thischapter discharges the financial institution from all claims foramounts paid whether or not the payment is consistent with thebeneficial ownership of the account as between parties, beneficiaries,or their successors.
(b) The protection provided under this section does not extend topayments made after a financial institution has received writtennotice from any party able to request present payment to the effectthat withdrawals in accordance with the terms of the account shouldnot be permitted.
(c) Unless a notice described in subsection (b) is withdrawn bythe person giving it, the successor of any deceased party must concurin any demand for withdrawal if the financial institution is to beprotected under this section.
(d) No other notice or any other information shown to have beenavailable to a financial institution affects the institution's right to theprotection provided under this section.
(e) The protection provided under this section does not affect therights of parties in disputes between themselves or their successorsconcerning the beneficial ownership of funds in or withdrawn frommultiple party accounts.
As added by P.L.2-2002, SEC.2. Amended by P.L.143-2009, SEC.39.
IC 32-17-11-27
Right of financial institutions to set off against accounts
Sec. 27. (a) Without qualifying any other statutory right to set off
or lien and subject to any contractual provision, if a party to amultiple party account is indebted to a financial institution, thefinancial institution has a right to set off against the account in whichthe party has, or had immediately before the party's death, a presentright of withdrawal.
(b) The amount of the account subject to set off as described insubsection (a) is that proportion to which the debtor is, or wasimmediately before the debtor's death, beneficially entitled.
(c) In the absence of proof of net contributions, the amount of theaccount subject to set off as described in subsection (a) is an equalshare with all parties having present rights of withdrawal.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-28
Provisions in certain agreements nontestamentary; creditors'rights
Sec. 28. (a) Any of the following provisions in an insurancepolicy, contract of employment, bond, mortgage, promissory note,deposit agreement, pension plan, trust agreement, conveyance, or anyother written instrument effective as a contract, gift, conveyance, ortrust is considered to be nontestamentary, and this title and IC 29 donot invalidate the instrument or any provision:
(1) That money or other benefits due to, controlled, or ownedby a decedent before the person's death shall be paid after theperson's death to a person designated by the decedent in eitherthe instrument or a separate writing, including a will, executedat the same time as the instrument or subsequently.
(2) That any money due or to become due under the instrumentshall cease to be payable in event of the death of the promiseeor the promisor before payment or demand.
(3) That any property that is the subject of the instrument shallpass to a person designated by the decedent in either theinstrument or a separate writing, including a will, executed atthe same time as the instrument or subsequently.
(b) This section does not limit the rights of creditors under otherIndiana laws.
As added by P.L.2-2002, SEC.2.
IC 32-17-11-29
Personal property owned as tenants in common; exceptions
Sec. 29. (a) This section does not apply to an account.
(b) Except as provided in subsection (c), personal property that isowned by two (2) or more persons is owned by them as tenants incommon unless expressed otherwise in a written instrument.
(c) Upon the death of either husband or wife:
(1) household goods:
(A) acquired during marriage; and
(B) in possession of both husband and wife; and
(2) any:
(A) promissory note; (B) bond;
(C) certificate of title to a motor vehicle; or
(D) other written or printed instrument;
evidencing an interest in tangible or intangible personalproperty in the name of both husband and wife;
becomes the sole property of the surviving spouse unless a clearcontrary intention is expressed in a written instrument.
As added by P.L.2-2002, SEC.2.