State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-146_1

§53‑146.1.  Joint accounts.

(a)        Any two or morepersons may establish a deposit account or accounts by written contract. Thedeposit account and any balance thereof shall be held for them as jointtenants, with or without right of survivorship, as the contract shall provide;the account may also be held pursuant to G.S. 41‑2.1 and have theincidents set forth in that section, provided, however, if the account is heldpursuant to G.S. 41‑2.1 the contract shall set forth that fact as well.Unless the persons establishing the account have agreed with the bank thatwithdrawals require more than one signature, payment by the bank to, or on theorder of, any persons designated in the contract authorized by this sectionshall be a total discharge of the bank's obligation as to the amount so paid.Funds in a joint account established with right of survivorship shall belong tothe surviving joint tenant or tenants upon the death of a joint tenant, and thefunds shall be subject only to the personal representative's right ofcollection as set forth in G.S. 28A‑15‑10(a)(3), or as provided inG.S. 41‑2.1 if the account is established pursuant to the provisions ofthat section. Payment by the bank of funds in the joint account to a survivingjoint tenant or tenants shall terminate the personal representative's authorityunder G.S. 28A‑15‑10(a)(3) to collect against the bank for thefunds so paid, but the personal representative's authority to collect suchfunds from the surviving joint tenant or tenants is not terminated. A pledge ofsuch account by any owner or owners, unless otherwise specifically agreed upon,shall be a valid pledge and transfer of such account, or of the amount sopledged, and shall not operate to sever or terminate the joint ownership of allor any part of the account. Persons establishing an account under this sectionshall sign a statement showing their election of the right of survivorship inthe account, and containing language set forth in a conspicuous manner andsubstantially similar to the following:

                       "BANK (or name ofinstitution)



G. S. 53‑146.1

We understand that byestablishing a joint account under the provisions of North Carolina GeneralStatute 53‑146.1 that:

1.         The bank (or name ofinstitution) may pay the money in the account to, or on the order of, anyperson named in the account unless we have agreed with the bank thatwithdrawals require more than one signature; and

2.         Upon the death ofone joint owner the money remaining in the account will belong to the survivingjoint owners and will not pass by inheritance to the heirs of the deceasedjoint owner or be controlled by the deceased joint owner's will.

We DO elect to create theright of survivorship in this account.


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

(b)        This section doesnot repeal or modify any provisions of laws relating to estate taxes. Thissection regulates and protects the bank in its relationship with joint ownersof deposit accounts.

(c)        No addition to suchdeposit account, nor any withdrawal or payment shall affect the nature of theaccount as a joint account, or affect the right of any tenant to terminate theaccount. (1987 (Reg. Sess., 1988), c. 1078, s. 1; 1989, c. 164,s. 2; 1989 (Reg. Sess., 1990), c. 866, s. 4; 1998‑69, s. 13.)